- Questions remain about James Global-Titanium Sands connection
- GSMB issues over 400 exploration licences in total
- Cabinet approved proposal for Trinco exploration in July 2023
The Northern and Eastern Provinces are increasingly becoming focal points for foreign investments, with the most recent one being that of mineral sands mining on Trincomalee beach by James Global.
“James Global has an exploration licence for a few blocks in Trincomalee – they got it a few months ago. They have done some sample analyses for now and are looking for heavy mineral sands, mainly ilmenite,” Geological Survey and Mines Bureau (GSMB) Director General (DG) Prof. H.M.R. Premasiri told The Sunday Morning.
Acquisition of James Global by TSL?
TSL, an Australia-based company, has been at the centre of controversy in recent years for exploring for heavy mineral sands on Mannar Island. Residents have claimed that explorations were being done with little transparency and little regard for the sensitive biodiversity on the island.
Last year, The Sunday Morning reported that in 2015, the GSMB had issued nine exploration licences to five Sri Lankan companies and one individual to conduct explorations in Mannar. The local firms had been sold off to two Mauritian companies, which were ultimately acquired by TSL.
Despite the Mines and Minerals Act No.33 of 1992 not allowing companies not registered in Sri Lanka to hold permits or licences, it was alleged that TSL had engaged in explorations in Mannar until 2022. In 2023, former Chairman of the GSMB R. Sanjeepan told The Sunday Morning that they had received a complaint regarding the project and that it had been halted.
Meanwhile, an Australian Securities Exchange (ASX) release dated 2 May 2023 shows that TSL has signed a binding sheet to acquire James Global – an associate company of JAT Holdings PLC. The release notes that James Global holds an exploration licence for 19 square kilometre grid units between Nilaveli and Thevikallu in Trincomalee. It further states that JAT Holdings will assist TSL’s activities in Sri Lanka as its in-country partner.
However, Titanium Sands Sri Lanka Head of Operations Saliya Galagoda told The Sunday Morning that the said agreement had later been terminated. He declined to comment further on the matter without meeting in person.
James Global in Trinco
The Sunday Morning learns that Eastern Province Governor and Trincomalee District Coordinating Committee (DCC) Co-Chair Senthil Thondaman had presented a proposal to lease State lands on the Nilaveli-Kumpurupiddi beach stretch to James Global and to lease lands for mineral sands mining. Several attempts to contact Thondaman proved futile.
Trincomalee District Secretary and DCC Convenor Chaminda Hettiarachchi told The Sunday Morning that James Global’s proposal for mineral sands mining in Trincomalee had already been approved by the Cabinet in July 2023.
“It came to us last month because the Governor presented it to us for our knowledge. The approval had already been given by the Cabinet; we were merely informed before they started their project. The GSMB has given permission to explore. Our committee got to know about this only after Cabinet approval was given,” said Hettiarachchi.
According to Hettiarachchi, the Cabinet proposal had been submitted by the Investment Promotion Ministry. However, Ministry Secretary M.M. Nayeemudeen said: “We took a policy decision on minerals that was approved by the Cabinet, but the real implementation is being handled by the GSMB.” He added that he was not aware of James Global’s investments in Trincomalee.
GSMB DG Prof. Premasiri said that although the GSMB gave the exploration licences, land access must be obtained from the local authorities.
“After exploration, they have to determine the potential land which may even be only a few hectares,” he added, commenting on the next steps.
Meanwhile, Frontline Socialist Party (FSP) Education Secretary Pubudu Jayagoda, who first voiced concerns about the project at a press conference last week, questioned the impact that sand mining on the Trincomalee beach stretch would have on the tourism and fisheries industries.
“What are the problems that such a project would create for tourism and fishing? There are fishing villages on this beach stretch where people are living,” he said, speaking to The Sunday Morning.
However, Hettiarachchi claimed that there would be no restriction on other activities on the beach stretch: “The company’s activities don’t impact other activities.”
Wider issues
Meanwhile, Jayagoda also questioned why, despite the GSMB having issued many exploration licences in the past, none had turned into any real investments for Sri Lanka.
“They take licences to explore and promise investments and industries, but this has never happened. Ultimately, the land that these companies obtain under exploration licences is given to someone else for other activities,” alleged Jayagoda, questioning the intentions behind the recent explorations by James Global as well.
GSMB Information Officer D.D.R.S. Maduwantha told The Sunday Morning that 462 exploration licences had been issued by the GSMB since 1992.
Prof. Premasiri admitted that the failure of exploration licences to turn into mining licences and eventually investments was an issue.
“After exploration, if there is insufficient potential, no one can mine. The exploration is done to understand the potential and feasibility. In cases where there is feasibility, many other issues such as environmental and social issues arise. Therefore, a company may explore but will leave because it can’t start mining,” he said.
He said that although some companies were trying to invest, Sri Lanka’s processes were not smooth.
“We have to get so many things for the companies, especially land clearance. Sri Lanka’s main issues centre around land as the GSMB cannot declare lands for minerals. We don’t have that right, unlike in other countries where their respective institutions do have that right. Here, companies have to go behind District Secretariats and Grama Niladharis to get the lands.”
Recognising this barrier, Prof. Premasiri said that the President’s Office was now trying to introduce new systems and change regulations: “With our existing act we cannot declare lands for minerals.”