March 28, Colombo (LNW): Industry experts are considering strategies to mitigate the current high prices of Sri Lankan graphite, with one proposed approach being a reduction in the depth of mining operations.
The depth of graphite deposits in existing mines is a key factor contributing to the high costs, Bogala Graphite PLC CEO, Amila Jayasinghe, emphasised.
He suggested that by limiting operations to depths of 10-20 metres from the surface, mining expenses could be substantially reduced.
However, Jayasinghe stressed the importance of expanding mining activities to new sites, contingent upon the establishment of robust regulatory frameworks.
These insights were shared during a discussion organised by the Institute of Policy Studies (IPS) aimed at addressing the challenges and opportunities within Sri Lanka’s graphite industry.
Jayasinghe highlighted obstacles such as the opacity surrounding the process of obtaining mining permits from authorities, which serves as a deterrent to potential foreign investment.
Additionally, he pointed out that the royalty fees imposed on value-added graphite exports incentivise the export of raw graphite to foreign markets, posing a disadvantage to local producers.
Professor Anura Wijayapala of the University of Moratuwa underscored Sri Lanka’s potential to capitalise on the growing electric vehicle market by branding its graphite as superior in quality and sustainably produced.
While Sri Lanka’s current graphite reserves may not meet US demand, there is an opportunity to leverage the country’s reputation for environmentally friendly practices to command higher prices in the global market.
The environmentally conscious manufacturing practices prevalent in Sri Lanka, including the extensive use of renewable energy sources, present an opportunity to label Sri Lankan graphite as “green graphite.”
With approximately 50 per cent of the country’s electricity sourced from renewables and comparatively low greenhouse gas emissions, Sri Lanka can position its graphite industry as environmentally responsible.
According to an IPS study titled ‘Trade Wars in Electric Vehicle Supply Chains: A Win for Sri Lanka’s Graphite Industry?‘, the success of the Sri Lankan graphite sector hinges on strategic market positioning, international collaborations, and adoption of green manufacturing practices.
With strategic foresight and innovation, Sri Lanka’s graphite industry stands poised to emerge as a significant player in the global supply chain for electric vehicle components.
