Regulatory Delays and Cyclone Impact Cloud Titanium Sands’ Sri Lankan Project Timeline
Titanium Sands Limited has lodged an Industrial Mining License application for its Mannar Heavy Minerals Project in Sri Lanka, marking a pivotal step towards production. The project boasts a substantial mineral resource and is progressing through environmental and feasibility milestones despite recent cyclone delays.
- Industrial Mining License application lodged for Mannar Heavy Minerals Project
- Mineral Resource Estimate of 318 million tonnes at 4.17% total heavy minerals
- High-grade zone of 82 million tonnes at 6.03% THM targeted for initial development
- Environmental studies nearing completion, delayed by Cyclone Ditwah
- Project aligned with Sri Lanka’s forthcoming national mineral policy focused on sustainable development
Strategic Milestone in Sri Lanka
Titanium Sands Limited (ASX – TSL) has taken a significant stride forward by lodging its Industrial Mining License (IML) application for the Mannar Heavy Minerals Project, located in northwest Sri Lanka. This move signals the company’s commitment to advancing the project towards commercial production, leveraging its strategic location with direct access to major ports in Colombo and Trincomalee.
Robust Mineral Resource Base
The project hosts a substantial Mineral Resource Estimate (MRE) of 318 million tonnes at 4.17% total heavy minerals (THM), with a particularly promising high-grade zone containing 82 million tonnes at 6.03% THM. This high-grade zone forms the foundation for the initial stage of development, underpinning a scoping study that demonstrated economic robustness and potential for expansion.
Environmental and Regulatory Progress
Environmental Impact Assessment (EIA) studies are nearing completion, with final reports expected in the first quarter of 2026. These studies faced delays due to Cyclone Ditwah, which caused widespread damage in Sri Lanka late last year. The company has expressed support for affected communities while continuing to prioritise environmental stewardship and community engagement.
Navigating Policy and Market Dynamics
The IML application’s assessment is contingent on the approval of Sri Lanka’s new national mineral policy, which aims to foster sustainable resource utilisation and encourage value-added processing within the country. This policy is expected to enhance governance and streamline licensing procedures, providing a clearer framework for foreign investors like Titanium Sands. The project’s ilmenite product is poised for export to key markets in the Middle East, Korea, India, and China, with offtake discussions anticipated to progress swiftly.
Looking Ahead
Following a positive scoping study, Titanium Sands is advancing feasibility studies to explore the potential for additional dredges and expanded processing capacity. These efforts aim to optimise capital and operational efficiencies, positioning the Mannar project as a significant player in the global heavy mineral sands market.
Bottom Line?
Titanium Sands’ license application marks a critical juncture, but final approvals hinge on Sri Lanka’s evolving mineral policy and environmental clearances.
Questions in the middle?
- When will Sri Lanka’s new national mineral policy be finalised and approved?
- How will environmental study delays impact the project’s development timeline?
- What progress is being made on offtake agreements and financing for project expansion?
