Iluka in talks on investment deal for Sri Lanka mineral sands deposit

ECONOMYNEXT – Australian mineral sands miner Iluka Resources Ltd. has begun talks with Sri Lanka’s government on an investment agreement for its ilmenite deposit and suggested a joint working committee with government officials to work out the deal. 

Sri Lankan consultants are being engaged to work on various environmental, hydrogeological and infrastructure work packages, said a statement by the firm which produces zircon and rutile used in paints, ceramics and other products.

The company, one of the world’s biggest producers of minerals sands, said in a stock exchange filing a pre-feasibility study is underway on the Puttalam deposit on the island’s northwest coast, 170 kilometres north of the capital Colombo.

Iluka has spent an estimate $10 million on pre-feasibility studies on the Puttalam mineral sands deposit.

“The potential for the development of the mineral sands deposit known as the Puttalam Quarry is currently being assessed,” the statement said.

“Project work is focussed on legal and investment terms for the development and includes securing surface access rights, ministerial and other governmental approvals,” it said.

“Discussions with the Sri Lankan government have commenced on establishing a pathway towards Iluka securing a binding Investment Agreement.

“Iluka 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.”
(COLOMBO, April 20, 2017)

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