Mineral sector unable to reach full earning potential due to unaddressed challenges: CME

The stakeholders of the local mining sector yesterday said the industry is unable to function to its full potential as several unaddressed challenges continue to persist, standing as stumbling blocks in fetching higher foreign revenue. 
One of the key issues impeding the development of the industry is the reduced accessibility to raw materials. 
“It is not the availability of raw materials that is the issue; it is the lack of accessibility to the raw materials that is making things difficult for the industry in generating higher foreign revenue,” said A.F.M. Farook, Vice Chairman of the newly-established Chamber of Mineral Exporters (CME). 

He pointed out that despite Sri Lanka being a small country, it is rich in mineral resources. But the acts and ordinances in place to safeguard the minerals have led to the land rights superseding the mineral rights. 
“In other countries, it is the other way around. Sri Lanka has the necessary framework in place but it is not implemented in the proper manner. This is a sensitive subject but is a key subject that needs consideration if the government wants to make minerals a thrust sector,” said Farook.  Another major deterrent is not having accurate information on what exactly Sri Lanka’s mineral bank consists of. Active efforts have not been made by the relevant authorities to roll out a mineral survey across the island to take stock of the available mineral resources and their quantities.  “This is not given priority and we don’t know what the bank is. We don’t know the amount and quality of our minerals,” said Farook.
According to the CME, the other hurdles that are hampering the progress of the industry include rapid policy changes, inconsistent regulations and tax laws affecting investment decisions and long-term planning. 

Further, unfounded and baseless environmental and social concerns causing project delays due to opposition are adding to the woes faced by the mineral sector. 
To address the issues, the CME called on the government to establish transparent and consistent policies and regulations for mining and exports, while having independent oversight bodies that implement a strong regulatory framework with clear guidelines and regular audits to monitor compliance and identify corrupt practices. 
The chamber also stressed the need to simplify and streamline the permitting and licensing process for mineral exports. Currently, in Sri Lanka, the mining licence is valid for only a period of one year, while in other nations across the world, the validity is for about 10 to 15 years.