GSMB’s proposals on mineral value addition will up forex

The Geological Survey and Mines Bureau (GSMB) has come up with several measures to increase revenue collection including new proposals on mineral value addition. The proposals of GSMB on mineral value addition were prepared and submitted to the Ministry,  GSMB Chairman R. Sanjeepan said. Speaking to the Daily News, Sanjeepan said there are misconceptions about mineral value addition, including on raw vein quartz which has recently stirred controversy.

Sanjeepan explained that although there is a Cabinet decision that raw vein quartz cannot be exported without any value addition, in some quartz varieties exporting in lumps can generate more revenue for the Government.

He said that varieties such as clear quartz are exported for over US$ 1,000 per ton and when exported in lumps can earn the royalty for the Government which is around seven to nine percent plus a CESS of 25 percent.

“In case of powdering which is identified as a value addition, the Government only gets the seven to nine percent royalty payment and the current export price is around US$ 300,” he said.

The Chairman said GSMB’s attempts to export raw vein quartz in lumps, which was criticized in some media as violating a Cabinet decision, would actually earn more revenue for the Government.

According to Sanjeepan, the definition on value addition related to vein quartz has to change as even in the case of powdering (identified as a value addition) Sri Lanka only exports raw vein quartz.

“In Sri Lanka we don’t produce finished goods like semiconductors, microchips, industrial integrated circuits, high temperature lamp tubing, optical fibres, chemically reinforced glass and solar silicon cells. Those are value added products. Either in powder form or lumps, we only export raw material.”

Sanjeepan said he hoped new proposals on mineral value addition will be accepted paving the way for the Government to earn more foreign revenue from mineral exports.

The Chairman also said that some new measures adopted by the GSMB have contributed to increasing revenue.

Last Year (2022) GSMB had earned Rs. 3.79 billion revenue and this year 2023 (for the last seven months up to July) has earned Rs. 2.69 billion.

Sanjeepan expects GSMB earnings to increase by at least 50 percent in 2023 compared to 2022.

The GSMB has also contributed Rs. 2 billion to the Treasury during the last 12 months.

Some of the new measures the GSMB has initiated include, restructuring of the issuance procedure of special licences in order to prevent misuse of the authority granted by the GSMB.

A circular has been issued for implementing new processes for rehabilitation of mined out lands.

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