Apr 20, Colombo: Australian sand miner, Iluka Resources, a major participant in the global mineral sands industry is in discussions with the Sri Lankan government on securing an investment agreement to develop the mineral sand deposits in the island.
The company, involved in mineral sands exploration, mining, processing and marketing, said in a stock exchange filing that discussions with the Sri Lankan Government have commenced on establishing a pathway towards Iluka securing a binding Investment Agreement.
Iluka said it is in the process of revising a comprehensive project proposal and has suggested forming a joint working committee with the appropriate government ministries to progress the negotiation of the Investment Agreement.
The company is currently assessing the potential for the development of the mineral sands deposit known as the Puttalam Quarry (PQ), a large sulphate ilmenite deposit, located approximately 30 kilometers north of the town of Puttalam in the North Western Province and approximately 170 kilometers from the capital, Colombo.
PQ project work is focused on legal and investment terms for the development and includes securing surface access rights, ministerial and other governmental approvals, the company said in its Quarterly Production Report for quarter ending March 2017.
A pre-feasibility study is being undertaken on the PQ deposit with in-country consultants being engaged to progress various environmental, hydrogeological and infrastructure work packages, Iluka said.