Mar 11, 2014 (LBO) - Bogala Graphite Lanka Plc, a unit of AMG Mining AG of Germany has asked for the industry to be consulted before new regulations are imposed and capital expenditure has been curtailed.
The firm said Sri Lanka's Geological Survey and Mines Bureau, the industry regulator, has informed the mining industry that the related ministry is change regulations.
"We trust the relevant authorities will consult with us prior to promulgating new regulations," chief executive officer Amila Jayasinghe said.
"We on our part would be in a position to contribute positively towards formulation of regulations considering that the Company has a history of 150 years in mining in Sri Lanka.
Sri Lankan authorities have previously said that more 'value addition' is expected from domestic raw materials including minerals.
Already rubber and tea producers are being taxed and being given lower than the market prices available to producers in other countries if they export in raw form.
Meanwhile Bogala Graphite Chairman Vijaya Malalasekara said the firm was continuing to focus on cost reductions, productivity improvement and process changes.
"The process improvements that have been carried out should enable us to cater to the high end graphite market," he said.
"However, we are monitoring closely the regulatory changes in that are being proposed. We earnestly hope that the authorities concerned will consult us as we have been in this industry for the last 150 years.
"Regulations, we believe should be done in consultation with parties who could be affected.
Bogala Graphite had sought clarifications from the ministry.
"Pending response of the Ministry, our capital expenditure plans have been temporarily reduced," Jayasinghe said.
The graphite industry has been previously expropriated from the people by the elected ruling class in a European style exercise shortly after the island gained independence from the British.
Bogala Graphite itself was privatized in the 1990s control later went to a specialist mining firm.
There has been strong foreign investor interest, especially in Graphite following the end of a civil war in 2009.
The firm said Sri Lanka's Geological Survey and Mines Bureau, the industry regulator, has informed the mining industry that the related ministry is change regulations.
"We trust the relevant authorities will consult with us prior to promulgating new regulations," chief executive officer Amila Jayasinghe said.
"We on our part would be in a position to contribute positively towards formulation of regulations considering that the Company has a history of 150 years in mining in Sri Lanka.
Sri Lankan authorities have previously said that more 'value addition' is expected from domestic raw materials including minerals.
Already rubber and tea producers are being taxed and being given lower than the market prices available to producers in other countries if they export in raw form.
Meanwhile Bogala Graphite Chairman Vijaya Malalasekara said the firm was continuing to focus on cost reductions, productivity improvement and process changes.
"The process improvements that have been carried out should enable us to cater to the high end graphite market," he said.
"However, we are monitoring closely the regulatory changes in that are being proposed. We earnestly hope that the authorities concerned will consult us as we have been in this industry for the last 150 years.
"Regulations, we believe should be done in consultation with parties who could be affected.
Bogala Graphite had sought clarifications from the ministry.
"Pending response of the Ministry, our capital expenditure plans have been temporarily reduced," Jayasinghe said.
The graphite industry has been previously expropriated from the people by the elected ruling class in a European style exercise shortly after the island gained independence from the British.
Bogala Graphite itself was privatized in the 1990s control later went to a specialist mining firm.
There has been strong foreign investor interest, especially in Graphite following the end of a civil war in 2009.
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