Titanium Sands Limited (TSL) has locked in its Mannar Island heavy mineral sands project for a final push towards production, after the Sri Lankan government extended its four key exploration licences.
The retention paves the way for the company to complete its ongoing environmental studies and brings it closer to securing the all-important industrial mining licence (IML) for its high-grade mineral sands deposit.
The four approved licences encompass the project’s high-grade zones, which TSL’s 2023 scoping study projects will gross stage one revenue of nearly $2 billion and a net present value of $545 million.
The licence retentions also come after the government issued terms of reference (ToR) earlier this year outlining the requirements for TSL’s upcoming environmental impact assessment process.
The company says the approvals will enable it to finalise its studies to address the terms of reference requirements, a critical final step before TSL obtains its mining licences.
TSL says it is targeting a mid-year environmental impact assessment submission, which will position it to apply for the mining licence and unlock the project’s potential to produce up to 150,000 tonnes of heavy minerals annually, with a pre-production capital expenditure of just $122M.
The company is prioritising stakeholder engagement. Government departments and local community consultation were all factors in the project’s retention. It says the project’s rehab and sustainability initiatives are expected to create up to 600 direct in-country jobs and support a further 1200 jobs through community-owned agricultural projects, fostering long-term economic growth in the Mannar region.
Titanium Sands managing director Dr James Searle said: “Receiving the ToR in March 2025 and now the licence retentions for the project is a further step towards obtaining the IML for this project. The government of Sri Lanka is showing great support in progressing this project and the company is solely focused on delivering a high-grade producing mineral sands operation once all regulatory approvals are in place.”
The Mannar Island project hosts a high-grade resource of 318Mt grading at 4.17 per cent total heavy minerals, including an 82Mt high-grade zone running at 6.03 per cent heavy minerals. With a low capital intensity and robust financial projections, the project is poised to become a globally significant ilmenite producer, contributing to Sri Lanka’s economy and supporting the need for new titanium mineral supplies as global mineral sands projects deplete.
TSL says it remains committed to a low-impact, environmentally responsible operation, with community engagement at its core.
With the environmental impact assessment process underway and government backing strengthening, TSL looks poised to quickly lock in its mining licence application, which represents a pivotal milestone in its journey to join the global ranks of mineral sands producers.
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By Andrew Todd
