Cabinet approval has been granted for the implementation of a value addition project under a public-private partnership for the Kahatagaha graphite mine.
The Kahatagaha mine, which spans an area of about 102 acres and is the deepest graphite mine in Sri Lanka, is currently operated by the wholly government-owned company, Kahatagaha Graphite Lanka Limited, which produces and exports the highest quality graphite.
It was decided to restructure Kahatagaha Graphite Lanka Limited under the previous government, and it was decided at the cabinet meeting in 2023 that steps should be taken to implement a value-added project for the graphite in the Kahatagaha mine through an identified investor. However, further action has not been taken in this respect.
The government says it has also been found that the locally available technology is not sufficient to determine the reserve of the graphite in the aforementioned mine.
Accordingly, taking these matters into consideration, the Cabinet of Ministers has approved the proposal presented by the Minister of Industries and Entrepreneurship Development to repeal the cabinet decision taken on 11-12-2023 regarding the restructuring of Kahatagaha Graphite Lanka Limited.
It has been further proposed to call for proposals for expressions of interest following the approved procurement procedure to implement the entire procedure of exploring the graphite reserve of the Kahatagaha mine, mining, processing, and adding value to the graphite in the aforementioned mine under a Public-Private Partnership, while keeping the ownership of the graphite of the Kahatagaha mine with the company itself and securing the jobs of the employees currently working in the mine. (Newswire)
