Titanium Sands Limited has lodged key Industrial Mining License applications for its Mannar Heavy Minerals project in Sri Lanka, progressing environmental approvals and securing funding as the country finalises a new mineral policy.
- Industrial Mining License applications lodged covering 69 sq km and 318mt resource
- Environmental Impact Assessment studies nearing completion, expected Q1 2026
- Sri Lanka’s new mineral policy pending government approval, affecting license evaluation
- Funding secured up to $800,000 to support regulatory and environmental processes
- Discussions underway with offtake partners targeting regional and global markets
Mining License Milestone
Titanium Sands Limited (ASX, TSL) has taken a significant step forward in its Mannar Heavy Minerals project in northwest Sri Lanka by lodging Industrial Mining License (IML) applications covering an extensive 69 square kilometre area. This includes the company’s previously reported mineral resource estimate of 318 million tonnes at 4.17% heavy mineral sands (HMS), positioning the project as a substantial player in the region’s mineral sands sector.
The initial application focused on a high-grade zone of 82 million tonnes at 6.03% total heavy minerals, which formed the basis of an earlier scoping study. The expanded applications now encompass the broader resource, allowing for the potential parallel development of subsequent project stages.
Environmental and Regulatory Progress
Environmental Impact Assessment (EIA) studies are advancing well, with only a few outstanding reports remaining. The company anticipates finalising these critical environmental approvals in the first quarter of 2026, aligning with government requirements. These studies cover a range of factors including hydrology, migratory bird impacts, vegetation, and community socio-economic effects, reflecting a comprehensive approach to sustainable development.
However, the evaluation of the IML applications is contingent upon the finalisation and approval of Sri Lanka’s new national mineral policy. This policy aims to modernise the country’s mineral sector by enhancing governance, transparency, and encouraging value-added processing rather than raw material exports. The policy’s completion is eagerly awaited by Titanium Sands and other foreign investors, as it will set the framework for licensing and project development.
Funding and Market Outlook
To support the ongoing regulatory and environmental work, Titanium Sands has secured funding arrangements of up to $800,000 through a loan agreement facilitated by CPS Capital Group. This financial backing ensures the company can maintain momentum towards license approval and project advancement.
On the commercial front, the project’s high-quality ilmenite product is expected to attract strong demand from titanium slag and pigment producers across the Middle East, Korea, India, China, and beyond. Discussions with potential offtake partners are progressing, signalling early market interest ahead of production.
Looking Ahead
While the company reported a net cash outflow of $362,000 from operations and $132,000 in exploration expenditure for the quarter ending December 2025, it remains confident in its funding position and operational outlook. The next few months will be pivotal as the new mineral policy is finalised and environmental approvals are secured, setting the stage for potential large-scale development and financing.
Bottom Line?
Titanium Sands stands at a regulatory crossroads in Sri Lanka, with policy finalisation and environmental approvals set to unlock the next phase of its mineral sands ambitions.
Questions in the middle?
- When will Sri Lanka’s new mineral policy be officially approved and implemented?
- How will the new policy impact foreign investment and licensing timelines for Titanium Sands?
- What are the prospects and timelines for securing binding offtake agreements with regional buyers?