Treasury go-ahead awaited to conduct fresh aerial geophysical survey

To assess Sri Lanka’s rich sub-surface mineral wealthA significant boost to proposed foreign investment
— Minister Susil Premajayantha

By Suresh Perera-April 20, 2013, 

In a significant boost to proposed foreign investment in exploiting Sri Lanka’s sub-surface mineral wealth, the government is contemplating conducting a fresh aerial geophysical survey after a span of more than 50 years.

"We are awaiting the green light from the Treasury to go ahead with this vital task, the cost of which runs into millions of dollars", says Susil Premajayantha, Minister of Environment and Renewable Energy.

This is welcome news to the country’s mining industry, which has consistently expressed concern over the prolonged delay in carrying out a modern, state-of-the-art aerial geophysical survey as, despite Sri Lanka’s rich mineral resources, the last effort in this regard was made in 1957-58 — more than half a century ago.

"We will embark on the mission when the necessary funds are sanctioned by the Treasury", the Minister told The Sunday Island yesterday. "We are also eager to get on with the job".

The government is keen to attract foreign investors into this lucrative sphere, but the biggest disincentive is the absence of geophysical data based on modern technology to assess the country’s rich mineral resources, industry players said.

With an outdated airborne geophysical survey done more than 50 years ago, it is next to impossible to offer an incentive to key global players in this segment", they pointed out. "We need to make use of modern techniques for this purpose".

Unlike Australia, Sri Lanka is a small country with limited financial resources, Minister Premajayantha noted. "We need to raise US$ 15 million for this survey to detect sub-surface mineral wealth".

That’s a lot of money, he pointed out. "The Treasury will examine the key aspect of economic viability before giving the go-ahead".

At present, the Geological Survey and Mines Bureau (GSMB) is employing other techniques to assess the country’s mineral resources, he explained.

No foreign investor will express interest if Sri Lanka is not armed with geophysical data based on modern technology as these are enormous investments involving millions of dollars, industry officials said.

"When we are ready, they will come or else, these potential investors will opt out", they said. "That’s why it is important to have the ground work done".

 Funding for this effort is the main issue as the aerial operation costs around US$ 16 to 17 million, GSMB’s Chairman, Dr. Nara P. Wijayananda said.

"We are waiting for the final clearance for funding from the Finance Ministry to undertake this survey", he explained.

The GSMB earlier fell back on the position that an airborne geophysical survey could not be undertaken during the past 30 years due to security reasons. Its contention was that aircraft has to fly at a lower altitude and companies declined to take up the job due to the risk they had to face, industry officials recalled.

But, more than three years after the war ended, nothing has been done so far to conduct this crucial survey, they complained. "Earlier, they were griping over the war and now over funding".

Wijayananda said an aerial geophysical survey is only one of the tools used in mineral exploration. There are other powerful and basic tools such as (a) basement geological mapping (all maps completed and published), quaternary geological and geochemical mapping (started three years back and continuing).

"During past two years, we have identified new clay (ball clay and kaolin) deposits for tile and porcelain industries. Tile and porcelain companies are in the process exploiting these deposits", he said.

"It is our view that such surveys should be undertaken by the government using State funds as then the government itself can decide on the development of any new findings so that the country will get its best share", the Chairman explained.

"The survey would help us to detect anomalies which could lead to the discovery of new subsurface mineral deposits, Wijayananda explained. "We are conscious of its critical importance, but we need to line up the funds".

It is no secret that finding the right investors for mining projects translates into millions of dollars in dividends for Sri Lanka, industry players noted. "There are some countries where mining mineral resources largely finance the running of entire economies because big companies work on a profit-sharing basis with governments".

It is unfortunate that in a country, where there is rich mineral wealth to be exploited, the geophysical survey has been relegated to the backburner, they complained.

"No, that’s not the case", the Chairman shot back.  "The government is keen to undertake this study as soon as the finances are sorted out".

What has the GSMB done for 50 years as it has been widely acknowledged that the biggest impediment to identifying and exploring Sri Lanka’s mineral wealth is an obsolete Aeromagnetic coverage done in 1957-58, they said. "It, however, covered only a part of the country".

A survey was done in 1960 as well, but all that is outdated now, he conceded. "We need to make use of modern technology".

"We have already issued exploration licenses for subsurface graphite, iron and cement limestones for local and foreign investors. Serious investigations have also been undertaken for these minerals", Wijayananda said.

"Sri Lanka has been skirting on surface exploration of mineral resources (except for Bogala and Kahatagaha mines). Why have we not gone into subsurface exploration which is the need of the hour to make optimum use of our mineral wealth?", the officials queried.

It is unfortunate that the country’s mining industry has been relatively stagnant and still remains in a primitive stage, they asserted. "It lacks impetus".

"That’s not correct. The government has invested substantially in acquiring new technology and training new local staff on state-of-the-art technology. We are optimistic that more new deposits would be developed in the near future which would give a positive impact on the economy of the country", Wijayananda explained.