State-owned Lanka Mineral Sands Limited has requested exclusive mining rights over 68 grids along Sri Lanka’s northeastern coastline, as Parliament examines the allocation of mineral deposits and irregularities associated with previously issued mining licences.
The request was considered by Parliament’s Sectoral Oversight Committee on Economic Development and International Relations, according to an official statement released on October 19.
The company has asked that the mineral deposits covered by its request be reserved for its operations rather than allocated to private mining institutions.
The committee discussed the proposal alongside the government’s policy of increasing domestic processing of mineral resources before export.
Parliament also disclosed that information concerning certain suspected irregularities identified in earlier mining licences had been forwarded to the Criminal Investigation Department.
Exclusive rights requested over 68 grids
Lanka Mineral Sands Limited operates mineral extraction and processing facilities at Pulmoddai in the Trincomalee District.
The company processes heavy mineral sands containing commercially valuable minerals, including ilmenite, rutile, zircon and monazite.
Its latest request concerns 68 mining grids along the northeastern coastline.
Parliament has not published the individual grid boundaries, the total land area covered or the estimated mineral reserves associated with the application.
The committee discussed the need to maintain a long-term supply of raw materials for industries that process mineral sands into higher-value products.
It decided to issue recommendations concerning the requested mining rights and operational support for the company.
The announcement does not confirm that exclusive rights have already been granted.
Earlier expansion plans targeted US$100 million in additional revenue
The request follows an expansion programme described in the Ministry of Industry and Entrepreneurship Development’s 2025 progress report.
That document identified several commercial objectives for Lanka Mineral Sands during 2026.
Among them was a plan to sell existing mineral stocks at Pulmoddai, including 100,000 metric tonnes of ilmenite.
The company also planned to enter additional international markets and pursue trade agreements, with the stated objective of generating an incremental US$100 million in revenue by 2026.
The figure was a commercial target published in the ministry’s earlier report. It was not presented as revenue already earned.
68 mining grids: Exclusive rights requested in the latest parliamentary proceedings.
100,000 metric tonnes: Ilmenite stock identified for planned sale in the ministry’s 2025 report.
US$100 million: Additional revenue target described in the company’s 2026 plans.
The documents do not establish that the proposed rights have been granted or that the commercial targets have been achieved.
The ministry’s earlier report also identified Pudawakattu, Kokkilai and Thevikkallu as locations where the company intended to expand mining activities.
Proposed industrial projects included zirconia extraction and zircon powder production.
The company also planned to seek investment partnerships and create approximately 1,000 employment opportunities for low-income residents and Samurdhi beneficiaries in Trincomalee District.
Updated project completion figures and employment numbers were not provided in the October 19 parliamentary announcement.
Mining licence concerns referred to investigators
During the committee meeting, members examined the review of previously issued mineral mining licences and the action required in cases where irregularities had been identified.
Parliament reported that information concerning certain irregularities had been forwarded to the Criminal Investigation Department.
The announcement did not identify the licence holders involved, the dates of the relevant approvals or the nature of each suspected irregularity.
It also did not establish that Lanka Mineral Sands Limited itself was responsible for the matters referred to investigators.
The committee considered the introduction of a multi-agency mechanism to improve coordination and oversight when mining licences are issued.
Questions about the allocation of valuable public resources are connected to wider concerns about government contracting and institutional oversight.
Lakbima News previously examined those concerns in its report on government procurement and the award of public contracts.
Domestic processing remains a government objective
Sri Lanka has traditionally exported several mineral products in forms that undergo further industrial processing overseas.
The government has identified domestic processing as a means of increasing the commercial value obtained from mineral resources.
The October parliamentary discussions included proposals to attract local and foreign investors into mineral-processing industries.
Lanka Mineral Sands already produces several separated mineral products. Its published product information identifies ilmenite, rutile, zircon and high-titanium ilmenite among its commercial products.
Further processing would require investment in suitable industrial facilities, technology and supporting infrastructure.
The parliamentary statement does not disclose the estimated investment required for the proposed projects or identify investors committed to them.
It also provides no timetable for deciding the company’s application for exclusive rights over the 68 grids.
