Titanium Sands is a significant step closer to securing a mining licence for its $545 million Mannar Island heavy mineral sands project in Sri Lanka after landowners affected by the operation signed land access agreements.
The company describes the agreements as a milestone moment that takes it further towards completing its environmental impact obligations at the site. The key event comes after Titanium Sands representatives met with the affected landowners to explain the proposed project and to outline its plans for the progressive development of sustainable commercial plantation agriculture as an integral part of the operation.
Titanium Sands managing director James Searle said: “The signing of the priority Zone 1 land access agreements is another milestone achieved in the CEA process. Further CEA site visits are expected to address other outstanding milestones that will lead to completion of the process”.
The priority “zone-one” at the centre of the agreements includes areas allocated for mining part of the company’s 82-million-tonne, high-grade zone outlined in its scoping study and land required for the initial processing plant and operations.
In late July, Titanium Sands confirmed the Central Environment Authority (CEA) had initiated environmental clearance for the project and completed an initial site visit in conjunction with environmental impact assessment (EIA) consultants. Upon completion of the EIA, the CEA is expected to sign off on the project, which should then lead to the issue of a mining licence by the Sri Lankan Government’s Geological Survey and Mines Bureau.
The Mannar Island deposit is a more than 12m-thick accumulation of unconsolidated sands less than 8000 years old that extend in two continuous main zones between 10km and 12km long and from 1km to 3km wide. The island is connected to the mainland shore of Sri Lanka by road, rail and power infrastructure.
The project comprises a total current mineral resource estimate of 318 million tonnes at a grade of 4.17 per cent total heavy minerals (THM). It includes the 82 million tonnes at 6.03 per cent THM, which forms the central element of the project scoping study.
The study confirmed the project as having a stage-one NPV of $545 million, with total gross project revenue of $2 billion and total net revenue of $1.28 billion. The project has an impressive internal rate of return of 52 per cent and is expected to employ up to 1200 people when fully operational.
Having nailed down the significant land access deals, Titanium Sands will now be hoping the power from the local people will bring more power to its project.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Doug Bright
