By: Staff Writer
June 03, Colombo (LNW):Amid growing regional interest in Sri Lanka’s rich mineral reserves, British firm Capital Metals PLC has entered the island’s mining sector with backing from local investment company Ambeon Capital PLC. This move follows a wave of Indian interest, particularly in securing critical minerals needed for renewable energy and strategic industries.
India has intensified efforts to secure resources like lithium, graphite, and nickel through regional partnerships under its National Critical Mineral Mission. Sri Lanka, with its substantial deposits of industrial and critical minerals, has emerged as a key focus. Delegations from India’s Ministry of Mines and major public sector companies have visited Sri Lanka to assess collaboration opportunities and evaluate local mining assets. Indian interest centers especially on Sri Lanka’s highly pure vein graphite, vital for lithium-ion battery production.
As India looks to expand its mineral footprint, Ambeon Capital has opted to diversify its investment strategy by partnering with UK-listed Capital Metals in a major mineral sands project in Sri Lanka’s Eastern Province. According to a filing on the Colombo Stock Exchange (CSE), the “Taprobane Minerals Project” is considered one of the world’s highest-grade mineral sand ventures, with scope for resource expansion and technological upgrades.
Ambeon’s initial investment of Rs. 600 million, to be made by June 4, 2025, will be directed to the project’s Sri Lankan holding company, Redgate Lanka Ltd. In return, Ambeon will receive 59.7 million ordinary shares in Capital Metals, representing a 14.1% stake in the UK firm. These shares will be listed on the London Stock Exchange, enabling Ambeon to participate in Capital Metals’ global mineral strategy.
Capital Metals will conduct operations in Sri Lanka through two local entities holding exploration and industrial licenses for mineral sands such as ilmenite, rutile, zircon, and garnet. These materials are critical for industries ranging from electronics to aerospace and renewable energy.
Meanwhile, India is strengthening ties with Sri Lanka under the Indo-Sri Lanka Free Trade Agreement (ISLFTA), which offers duty concessions on mineral exports. Sri Lanka’s new national mineral policy also aims to attract foreign investors and partners by encouraging joint ventures, especially in the critical minerals space.
With India and now the UK investing in the country’s mineral wealth, Sri Lanka is poised to become a regional hub for critical mineral exploration and processing, balancing geopolitical interests while tapping into the global green energy supply chain.
