Sri Lanka government is to take stern action against companies which are violating the Mines and Minerals Act No. 33 of 1992 misusing the mineral exploration licences and delaying their ongoing activities causing severe damage to the environment in exploration areas.
This directive was issued by Environment Minister Mahinda Amaraweera when he instructed the relevant authorities to expedite the ongoing exploration activities to identify places of valuable mineral resources in Sri Lanka.
He gave these instructions during a discussion with officials of the Geological Survey and Mines Bureau (GSMB) and the Sri Lanka Mineral Sands Company (SMSC)
He stressed that although the GSMB has issued exploration permits to certain individuals and companies, the exploration activities are not being carried out properly and efficiently.
“It has been about ten years since some companies and individuals obtained exploration licences. But they do not do proper or efficient explorations,” he said.
Therefore, the country loses a large amount of foreign exchange. We know that it was difficult for the government to find US$8 million to pay for the ship that freighted gas recently.
However, the GSMB and the CMSC have not been able to reap the benefits from a large number of valuable mineral resources. If you can’t make even a small amount of money, at least US$8 or US$10 million, there lies a serious shortcoming.”
The Minister further stated that this exploration should be carried out efficiently and extensively in collaboration with the GSMB and the CMSC.
GSMB senior officials said the bureau has the power to cancel licenses that it had previously issued to any local companies, to carry out mineral exploration activities
She said the licenses have been cancelled under Section 37 of the Mines and Minerals Act No. 33 of 1992.
It states the Bureau may cancel a licence issued under this Act, if it is found that the licensee has contravened any term or condition attached to said licence; has not carried out any lawful direction given to them by the Bureau.
If any company ; carries on wasteful mining despite prior warning given in writing by the Bureau against such mining is liable for suspension , curtail, or cease to carry on any activity authorised by such licence.
The company has to surrender their licence subject to satisfaction of the requirements of this Act; or has been convicted of an offence under this Act or of any regulation made thereunder.
Referring to mineral exploration in various areas they noted that the Mannar Island scoping study released in June 2020 identified an area of heavy mineral concentration 8kms long and one-two kms wide in the interior of the island within which a heavy mineral sands mining operation may be feasible.
This could result in mineral sand recovery operations – and development of commercial plantation agriculture in the post-mining rehabilitation process – growing to over 320 hectares over the course of 20 years, or double that if the project ran for 40 years.
These potential scenarios represent just 2.5 per cent and five per cent respectively of the Mannar Island landmass, which totals 13,000 hectares.
