Australian company buys Sri Lankan sand

Iluka Resources has acquired all the issued share capital of Sri Lankan company PKD Resources (Pvt) Ltd, which owns an exploration tenement located near the city of Puttalam in the north western province of Sri Lanka.

Under the agreement of acquisition of all the issued capital of PKD, Iluka Resources has been granted four exploration tenements within Sri Lanka. A company spokesman said a large mineral sand resource is contained within the tenements acquired through this acquisition.

“While subject to feasibility study work and all necessary Sri Lankan regulatory and Iluka approvals, it is expected that the deposit located on the tenements may deliver a capital-efficient, financially attractive investment opportunity for shareholders,” the spokesman remarked in a statement.

Iluka intends to commence feasibility work to potentially develop the deposit. It is progressing the appointment of a project development team, as well as continuing engagement with Sri Lankan officials to secure all necessary approvals.

Closer to home, Iluka Resources has started work near the Calder Highway at Ouyen where it will strike a mine four kilometres to the north of the highway. It plans to extract mineral sands on a ribbon of ancient beach sand. The operation is expected to cost $200 million and it is the company?s second mine in the area.

Sources: Colombo Page, Iluka Resources, The Weekly Times

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