Notice issued on Mineral Sands

Wasantha RAMANAYAKE

The Court of Appeal yesterday issued notice on respondents including Lanka Mineral Sands Ltd. in a Writ Application seeking to quash a Cabinet approved joint venture between the Mineral Sands Ltd. and an Austrian company to export mineral sands.

The Bench comprised Justice Sathya Hettige PC and Justice Anil Goonerathne PC.

President's Counsel Dr. Jayantha de Almeda Gunerathne for petitioners submitted that the Cabinet had approved a joint venture between the Lanka Mineral Sands Ltd and an Austrian company to excavate, extract and export mineral sands in the Pulmodai mineral sands deposit. He contended that if the the Cabinet had taken such a decision it would be contrary to its earlier decision and to the observations of the President on the project. He submitted that mineral sands contain four vital minerals that are used in the process of a number of products including computers, electronic and aviation, paper, paints, glass and plastic.

The President's Counsel submitted that the project would require 540,000 tons of mineral sands which could exceed the amount contemplated in the Government's expression of interest which should be a limited extraction of 150,000 tons for the sustainable use of the deposit for at least another 25 years.

The President's Counsel contended that if 540,000 tons of sand would be extracted annually as stated in the Cabinet Memorandum the deposit would run out in ten years time which was in violation of internationally accepted principles of sustainable use of natural resources.

The President's Counsel also contended that the main value addition to the raw mineral would be done at the third and the final stage and by that time, the deposit would run out of mineral sands and as a result, according to the counsel the largest portion of the foreign investment promised amounting to US $ 230-280 million could not be made, rending the venture disadvantageous to the country.

He submitted that at the first phase the Austrian company will only invest US$ 4-5 million and at the second stage US$ 27-32 million.

The petitioners among other matters, sought a writ of prohibition preventing the implementation of the joint venture between the Mineral Sands Company and the Austrian Company. Petitioners JVP Parliamentarians Bimal Rathnayake and Jayantha Wijesekera and the Inter-Company Employees Federation cited the Ministries of Industrial Development, Fisheries and Aquatic Resources and Finance and Planning, the Secretaries of respective Ministries, the Director of Coastal Conservation Department, Central Environmental Authority, Lanka Mineral Sands Ltd., Industrial Development Minister Kumara Welgama, the Secretary to the Cabinet of Ministers and the Austrian Company as respondents.

The notice would be returnable on April 30.