Titanium Sands starts environmental assessment for Sri Lankan project

Titanium Sands to start EIA for Mannar heavy mineral sands project after receiving key ToR from Sri Lankan government
Final EIA expected to be submitted in mid-2025 with IML expected to be issued shortly after
Retention licences also expected to be granted imminently

Special Report: Titanium Sands can progress with the environmental assessment of its Mannar heavy mineral sands project after receiving the key Terms of Reference from Sri Lanka’s Central Environment Authority.

Release of the ToR, which contains the environmental, heritage, social and economic requirements needed for an Environmental Impact Assessment to secure Geological Survey and Mines Bureau approval for an Industrial Mining Licence, follows a site visit and input from 35 regulatory bodies and government departments.

These included a series of CEA meetings and presentations culminating in a scoping presentation on August 22, 2024 and the scoping site visit on February 19, 2025, by stakeholders in the project.

Titanium Sands (ASX:TSL), which is focused on delivering economic benefits to the people of Mannar Island through job creation and generational wealth while preserving cultural heritage and protecting the environment, said that submissions made by stakeholders at scoping meetings had been included in the ToR.

It follows the election of the left-wing, mining-friendly National People’s Power coalition government in an upset result in November 2024 after the election of the coalition leader Anura Kumara Dissanayake as president in September 2024.

Dissanayake has a long-term vision of transforming Sri Lanka into a production-based economy with a focus on sectors such as manufacturing, agriculture and information technology rather than service industries.

Big step forward

“The release of the ToR is a significant step forward in the regulatory approvals process for this project,” managing director Dr James Searle said.

“The project will deliver a high-grade mineral sands operation that will create significant employment opportunities and become a source of wealth for local communities, as well as a significant boost in revenues to the Government of Sri Lanka.

“TSL is focused on delivering a low-impact environmentally-friendly project, with the highest levels of social awareness and inclusion.

“As heavy minerals have been mined for decades on the Sri Lankan mainland, TSL looks forward to building on the size and quality of the industry making a significant impact to the economic benefits of Sri Lanka.”

Mineral sands are a group of minerals such as ilmenite, rutile and zircon – with monazite and xenotime sometimes thrown into the mix – that are commonly found together as coarse and fine grain sands.

They are primarily valued for their Ilmenite, which is processed to produce titanium dioxide used as a pigment or opacifier in a wide range of everyday applications including paints, plastics and specialised chemicals.

It can be processed to produce titanium metal, which is lightweight, strong, corrosion resistant and with a high melting point that makes it suitable for aerospace, medical and specialist manufacturing applications.

Rutile is another titanium feedstock though its high refraction index makes it especially valued for use in the pigment industry.

Zircon and rare earths are other commodities that can be found in heavy mineral sand deposits.

Next steps

TSL will start the EIA process immediately with consultants working on a draft that will address the ToR requirements.

It expects to make the final EIA submission for GSMB review and approval in mid-2025, with support from government agencies and community groups.

As part of the EIA process, community consultation and comment will be undertaken with Mannar communities ensuring any other issues or concerns are addressed.

The company notes that recent meetings with all of CEA, GSMB and Board of Investment in Sri Lanka have led to the understanding that on completion of the EIA, formal IML approval would be granted in a timely manner.

TSL has also been advised by the GSMB that retention licence renewals or grant extensions had been delayed due to a non-related legal matter that has now been finalised.

As such, the GSMB expects to soon restart the process of issuing all outstanding licences and retentions with the company expecting its retentions to be granted imminently.

This article was developed in collaboration with Titanium Sands, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.