Titanium Sands has put a big piece of its approvals puzzle in place at its giant Mannar heavy mineral sands project in Sri Lanka.
An independent hydrology study has concluded its proposed mining method can co-exist with the island’s sensitive freshwater lens while avoiding significant environmental impacts.
The finding effectively removes one of the biggest environmental hurdles standing between Mannar and a mining licence. It is also likely to strengthen the company’s case as it moves through the final stages of the Environmental Impact Assessment (EIA) and Industrial Mining Licence (IML) process.
Environmental concerns have been the key challenge for Mannar. The positive hydrology report now provides a robust, independent answer to one of the biggest questions hanging over the project.
The report, completed by Sri Lankan hydrological consultant Professor R.L.H. Lalith Rajapakse, found the project is technically feasible and environmentally manageable. It concluded the proposed dredge operation would leave groundwater levels, water quality, salinity patterns, natural groundwater flows and the island’s freshwater lens largely untouched.
The operation proposes using a two-hectare dredge pond, running to a depth of about 12m, as part of a closed-loop water recycling system that requires no sustained dewatering or groundwater abstraction.
Almost 95 per cent of mined sand and virtually all process water would be returned to the mining void, maintaining balanced groundwater conditions, preserving seasonal recharge processes and minimising sediment mobilisation and long-term groundwater quality risks. Any impacts are expected to remain localised and not extend to existing station bores or wells.
The hydrology report confirmed what we were expecting, that no known groundwater-dependent ecosystems will be impacted. This is very positive for the project, the Mannar community and the greater environmental benefits.
That environmental endorsement carries extra weight when viewed against the size of the prize waiting on the other side of the approvals process. Mannar hosts a 318-million-tonne mineral resource grading 4.17 per cent total heavy minerals, including an 82-million-tonne high-grade zone grading 6.03 per cent total heavy minerals for stage-one development.
A 2023 scoping study projected stage one could generate $2 billion in gross revenue and a pre-tax net present value of $545 million, with $122 million in pre-production capital. The company is targeting annual production of 150,000 tonnes of heavy minerals, which management believes could position Mannar as a significant future source of titanium feedstocks.
Management believes the project is well aligned with Sri Lanka’s national ambitions.
The government is developing a National Mineral Policy that identifies heavy mineral sands as a strategic sector to boost export revenues, foreign exchange earnings and value-added mineral processing. Mannar sits squarely within those objectives.
Titanium Sands has already lodged its Industrial Mining License (IML) application and is now homing in on the final environmental approvals required before the licence can be assessed and granted.
The immediate focus now shifts to completing the Environmental Impact Assessment (EIA), which will then clear the way for the IML assessment. The company says discussions with environmental consultants are continuing and guidance on EIA timing will be provided as the approvals process advances.
Beyond the environmental findings, management believes the rehabilitation strategy offers an additional advantage. About 12 hectares of mined land would be converted each year into plantation agriculture and vegetation corridors for local communities and landowners.
Management believes the approach could create hundreds of jobs, support local industries and deliver long-term economic benefits beyond the life of the mine.
As existing mineral sands operations continue to mature and deplete, the market is searching for new long-life sources of titanium feedstock.
The market will likely be watching for completion of the EIA and progress on the Industrial Mining Licence, milestones that could narrow the pathway from paperwork to production.
If the EIA and mining licence milestones continue to fall into place, management believes Mannar can move from a long-permitted ambition to a significant new source of titanium feedstock. Titanium Sands would then edge closer to joining the global ranks of mineral sands producers.
Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au
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