Sri Lanka seeks investors for Paranthan Chemicals, Kahatagaha Mines

Sri Lanka is seeking investors for Paranthan Chemical Company and Kahatagaha Graphite Mines under Public Private Partnership (PPP) and has called for Requests for Proposals (RFPs) to resurrect these units, a senior Industry and Commerce Ministry official confirmed.

Northern-based Paranthan Chemical Company (previously Paranthan Chemical Corporation) is to be revitalised with the construction of damaged buildings before the end of this year, he said adding that a sum of Rs.525 million is needed to resume the factory production process soon.

With the completion of the reconstruction activities, the factory is expected to produce the Sri Lanka’s total Chlorine requirements domestically with a foreign exchange saving of around US$ 900,000 per year which had been spent to import Chlorine.

The unit is now importing liquid Chlorine in 900 Kg cylinders and refill into 68Kg cylinders at its refilling units in Horana and Kalutara. The main function of the corporation is to supply the entire chlorine requirement of the Water Supply and Drainage Board and private sector industries.

The Cabinet Committee on Economic Management has taken a decision to restructure Paranthan Chemicals though it is a profit making state venture that reported more than Rs.150 million profit in 2015. Trade union members claimed that the corporation is not depending on Treasury funds and is a self-financing institution. Therefore there was no need for restructuring of Paranthan Chemicals, they pointed out.

In another effort, the government is planning to sell 49 per cent of shares of Kahatagaha Graphite Mines to an Australian-based graphite exploration, a trade union leader alleged.

The mine which had been closed down for some time was restarted without any capital investment from the government and it is now operating at a profit, he pointed out.

Sri Lanka produces high quality graphite and possibly the only source suitable for use in the production of graphene, an expert in the industry said adding that mineral firms can develop their business to take best advantage of the present and future growth for graphite fluoride, graphite Nano powder and ultimately graphene production.