• TSL consolidates key Sri Lankan licences, advancing its bid for an Industrial Mining Licence
• Mannar project to generate over $2 billion in revenue and create 600 jobs
• Sri Lanka’s new pro-development leadership could support TSL’s final project approvals

Special Report: Titanium Sands is a step closer to obtaining an Industrial Mining Licence for its Sri Lankan mineral sands project following government approval to consolidate its main five licences.

Thanks to the approval from the Geological Survey and Mines Bureau, these licences, located in the project’s high-grade zone, are now held in the name of Titanium Sands’ (ASX:TSL) local partner Orion Minerals.

Now that the licences have been consolidated, it should make for a smoother transition and approval process with Sri Lanka’s Board of Investment (BOI).

“The direction and assistance provided by the BOI has been of great help to the process,” TSL managing director Dr James Searle commented.

“The GSMB sign off and issue of the licences into Orion’s name further supports the momentum of the IML application process.

“The outcomes expected in the coming months paint a positive picture for the company.”

The project is estimated to generate over $2 billion in initial revenue and is set to create around 600 jobs.

TSL has also lodged Orion licence retentions, which are being processed at present.

Added benefits

The Orion project isn’t just beneficial from an economic point of view, it holds an array of community benefits.

The project will create an advanced annual rehabilitation program where income producing crops will be developed for land-owners, providing income and job creation within the community for generations to come.

Changing of the guard

Just last month, His Excellency Anura Dissanayake was elected President of Sri Lanka, with parliamentary elections also to be held on the 21st of November.

Dissanayake has pledged development-focused policies, which could further support TSL’s progress as it continues to work with Sri Lanka’s GSMB and Central Environment Authority (CEA) to secure final approvals.

Mannar

TSL’s scoping study last year highlighted the Mannar heavy mineral project as a significant mineral sands asset, with a resource of 318Mt, of which 75% is indicated in the high-grade zone.

The project has a projected NPV of $545 million and a 20-year mine life, based on a 4Mtpa dredging operation.

Capex is also estimated at $122 million, with an IRR of 52%.

It’ll initially focus on producing ilmenite for the global market, with potential to expand into a larger resource base down the track.

TSL aims to put Sri Lanka on the map as a global ilmenite producer and trader.

This article was developed in collaboration with Titanium Sands, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.