Investor sought for Kahatagaha Graphite on PPP basis

Saturday, 8 February 2020 00:00 - - {{hitsCtrl.values.hits}}

Cabinet this week gave approval to call bids for an investor to provide value addition to the graphite obtained by Kahatagaha Graphite Lanka Ltd. and form a Public-Private Partnership with the company. Kahatagaha Graphite Lanka is a company fully owned by the Government. An estimated 65-70 metric tons of graphite is excavated each month from the Kahatagaha mine.

Sri Lanka contributes only 7% of the global graphite requirement in the global market. Value addition to the graphite extracted from the Kahatagaha mine is essential to expand production and increase earnings.

Accordingly, the Cabinet of Ministers approved the proposal submitted by the Minister of Industries and Supply Chain Management Wimal Weerawansa to invite both local and foreign investors to form a possible Public-Private Partnership with the State-owned company.

“The investor will be subjected to a competitive bidding process and will only be engaged with the value addition component of the mine,” a statement released by the Government Information Department said.

The Cabinet also has given the nod to evaluate the proposals by a Project Committee and a Cabinet appointed Negotiation Committee to select a suitable investor and implement the proposed project.