brand logo

Bids closed for Kahatagaha Mine value-addition

18 Apr 2021

By The Sunday Morning Business Desk   The Government has concluded its call for Expressions of Interest (EOIs) for an investor to undertake value-addition operations for the state-owned Kahatagaha Mine, The Sunday Morning Business learns.  According to the International Competitive Bidding Tender process published by the Ministry Tender Committee under the Ministry of Industries, the Tender Committee Chairman on behalf of Kahatagaha Graphite Lanka Ltd. invited sealed bids from local or foreign Parties on 22 February 2021.  The tender further included an Elemental Analysis Report from the Geological Survey and Mine Bureau, along with a Carbon Test Report elaborating on the general characteristics, chemical specifications, and analysis data of the mine. The value addition will be to convert raw graphite into the highly valuable graphene. At the moment, Sri Lanka is only exporting raw graphite.  It is learnt that the vein graphite is priced between $ 1.2-1.8 per kg, while graphene is sold at around $ 3,000 per kg. According to the tender, the capacity of the mine would be extended further depending on the amount of investment the graphite mine receives. According to Ceylon Graphene Technologies, Sri Lanka is the only place in the world where vein graphite is produced in commercial quantities. The Kahatagaha Mine is one of the leading producers of high-purity, natural vein graphite. The mine is unique in its low ash content and high-carbon crystalline graphite. In 2018, prices for Sri Lankan vein graphite averaged at $ 2,300 per metric tonne. Sri Lanka is currently producing 300 tonnes of graphite monthly, sourced mainly from the Bogala, Ragedara, and Kahatagaha Mines. The Kahatagaha Mine, in the Kurunegala District, exports about 65-70 metric tonnes of raw graphite per month. Sri Lanka contributes to 7% of the graphite requirement in the global market. Mining and quarrying activity contributed about 2.7% to Sri Lanka’s GDP in 2017. In the first quarter of 2018, the output value of mining and quarrying was an estimated $ 625 million, with a reported 0.6% growth rate compared to the first quarter of 2017. Graphene is a single sheet of carbon atoms arranged in a hexagonal honeycomb pattern. It is about 100 times stronger than the finest steel, and is flexible and transparent. It is used to develop miniaturised and super-fast computers and transistors.


More News..