ASX-listed Titanium Sands Limited has taken a pivotal step towards developing its significant Mannar Island heavy mineral sands project in Sri Lanka, formally submitting applications for an Industrial Mining Licence (IML).
A Major Milestone Reached
The company lodged the crucial paperwork with Sri Lanka's mining bureau late last year, clearing a key regulatory hurdle. This submission allows Titanium Sands to finalise outstanding environmental studies and secure the permit required to bring the high-grade deposit into operation.
The licence application covers a vast 69-square-kilometre area, encompassing the project's total mineral resource of 318 million tonnes, grading 4.17% total heavy minerals. Within this is a high-grade core of 82 million tonnes at 6.03% total heavy minerals, which is the focus for initial stage one development.
Navigating Delays and a New Policy Framework
Final environmental reports from consultants are due by the end of the current quarter, though the process faced setbacks. Cyclone Ditwah in late 2025 caused widespread disruption across Sri Lanka, closing many government offices for several weeks and delaying progress.
The assessment of Titanium Sands' applications will proceed once Sri Lanka finalises its new national mineral policy, which is currently in development. This updated framework aims to strengthen the country's minerals sector through sustainable practices, improved governance, and a greater emphasis on value-added processing, with heavy mineral sands in regions like Mannar being a key focus.
"The submission of the IML applications is a significant step in progressing the Project toward production and marks an important milestone for the Company," said Titanium Sands Limited managing director, Dr James Searle.
Substantial Economic Potential
A 2023 scoping study for Mannar Island painted a compelling picture of the project's potential. It outlined stage one revenue of nearly $2 billion and a net present value of $545 million, with pre-production capital expenditure estimated at $122 million.
The proposed operation is designed to produce up to 150,000 tonnes of heavy minerals annually. It promises to create substantial employment, with up to 600 direct jobs and support for another 1,200 positions through community-led rehabilitation initiatives.
The development will centre on titanium production from ilmenite, a commodity experiencing a recent supply crunch. Key potential markets include the Middle East, Korea, India, and China, with discussions with offtake partners set to begin shortly.
With a massive resource base now supported by advancing paperwork, the Mannar Island project is transitioning from a distant prospect to a genuine development opportunity. As Sri Lanka refines its mining regulations and global demand for titanium feedstocks remains strong, Titanium Sands is positioning itself to leverage scale, grade, and timing into a potential long-life success story in the mineral sands sector.
