Bogala Graphite Lanka reopens Rangala mine
COLOMBO (EconomyNext) – Bogala Graphite Lanka, a unit of Netherlands-based AMG Advanced Metallurgical Group N.V., said it had resumed production at a disused mine in an effort to reduce costs amid growing competition.
The mine at Rangala, fully owned by Bogala, and located 8 km southeast of the Bogala mines, can produce 300 metric tonnes a year.
"In order to reduce the overall cost of mining we have decided to open Rangala mine, which we kept in maintenance since 1985," the company told shareholders in its just-released annual report.
"This mine has already started to produce and will be capable to produce 300MT per year by the end of the year. Since this mine is very accessible the cost of mining will be very competitive."
Bogala Graphite directors have not recommended a dividend for the year ended 31st December 2014 due to the capital investment requirement to upgrade the production facilities to meet possible competition emerging in the industry, and region.
"We are observing the increasing activities of the competition and new players in Sri Lanka and are well positioned and continuing to prepare the company to face any challenges that might be posed by competitors," the report said.
More foreign firms have begun exploring and getting mining rights in Sri Lanka after he end of the ethnic war.