BOI signs up with Plumbago Lanka
The BOI signed an agreement with Plumbago Lanka (Pvt) Ltd, a venture
for mining and to export value added graphite. The company plans to
invest US $ 20 to US $ 78 million over the next 4 years.
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senior officials of BOI and Plumbago
exchanging the agreement |
Esna Group of Companies, a local firm with interests in power
generation, finance companies and logistics, will hold a 25 % stake in
the venture.
The Chairman of the Esna Group of companies, Eshana De Silva is a
Director for Plumbago Lanka.
Chris Cowan, an investor and Board Director, said, "The signing of
the BOI agreement is a significant event for our company, Plumbago Lanka
(Pvt) Limited. We look forward to continuing to work with the Geological
Services Mines Bureau, who have been very supportive, and other industry
and educational sectors as the demand for Sri Lankan graphite grows.
Plumbago Lanka plans to drive resurgence in this export-orientated
industry and make a significant contribution to the local economy."
BOI said, "this project is very important to the BOI as our agency,
from its inception, has sought to promote projects where value addition
has been applied to local natural resources. Hence the export of value
added graphite will be beneficial to Sri Lanka's economy.
Graphite has many industrial applications and projects such as that
of Plumbago Lanka (Pvt) Ltd will receive the continued support of the
BOI."
Graphite is commonly used in refractories, steel, lubricants, disk
brake pads, and paints, with emerging applications in the lithiumion
battery and fuel cell markets. The short term demand is expected to grow
at 4-5 % (YoY), and this figure could rise to as much as 20 % by 2020.
Prices have tripled since 2005 primarily due to increased demand from
BRIC countries and from the steel and automotive markets. Sri Lanka is
highly renowned for its crystalline vein graphite, with purity levels
ranging from 80-99 % carbon.
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