Capital Metals PLC is entering a decisive phase as it moves toward the Final Investment Decision (FID) on its flagship Taprobane Minerals Projectan exceptionally high-grade mineral sands venture.
It is poised to become one of Sri Lanka’s most economically significant resource developments. Executive Chairman Greg Martyr said describing the deposit as “one of the highest-grade undeveloped mineral sands projects in the world,” with construction expected to begin in early 2026 following regulatory approvals targeted by the end of 2025.
The Taprobane Minerals Project, formerly known as the Eastern Minerals Project, is located on Sri Lanka’s eastern coastline in the Ampara District, Eastern Province.
The deposit stretches along a coastal belt close to the towns of Pottuvil and Akkaraipattu, placing it near key road networks and export-friendly deep-water ports. This strategic positioning adds commercial value while improving the logistics of future production.
At the heart of the project’s appeal is its exceptional resource quality. The company’s latest assessments show an average grade of 17.2% total heavy mineral content, more than three times the global industry average of below 5%.
Capital Metals discards anything under 5% material that most global operators treat as ore underscoring its geological advantage.
Recent drilling has uncovered zones with grades reaching 60%, while exploration success to the west has tripled the initial mining area, supporting plans to reduce the cutoff grade from 5% to 2%. This will significantly expand the mineable resource while maintaining its high commercial value.
The project targets four key commodities ilmenite, rutile, zircon and garnet widely used in paints, ceramics, inks and industrial applications.
Extraction involves simple surface mining with no blasting, chemicals or deep excavation. Sand is mixed with water, processed through gravity-based spiral plants and immediately rehabilitated, allowing the land to be restored almost instantly.
This low-impact profile supports the global shift toward ESG-aligned mining practices.Capital Metals’ phased development strategy keeps upfront capital low. An initial US$25 million investment is expected to generate US$35–40 million in annual revenue at sub-US$20 million operating costs.
The total project requires US$80 million, and despite higher taxes and royalties introduced in Sri Lanka, updated modelling shows a strong NPV of US$180 million.
Local partnerships are central to navigating regulatory complexities. Ambeon Capital’s US$4 million investment for a 20% stake has strengthened the company’s domestic presence, supported by board member and former Sri Lankan cricket Vice captain Aravinda de Silva, now an influential investment professional.
The firm currently holds the only mineral-sands mining licence in the country and awaits two further approvals licence expansion and export clearance.
The project’s potential and favourable economics were highlighted at a recent promotional event hosted by the Sri Lankan High Commission in London.
Officials emphasised improving macroeconomic indicators, policy reforms and an upcoming Investment Protection Act aimed at strengthening investor confidence.
With first production targeted for early 2027, Capital Metals argues that the Taprobane project represents a rare opportunity: a high-grade, low-cost, strategically located mineral asset trading at a market value well below its economic potential.
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