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Thu, 24 April 2014 01:56:56
Sri Lanka graphite mine warns of rising competition
04 Mar, 2013 10:53:06
Mar 04, 2013 (LBO) - Sri Lanka's Bogala Graphite Lanka Plc, a unit of AMG Mining AG of Germany is facing greater competition, despite marketing support from its parent, shareholders have been warned.
In the year to December 2012, revenues rose 39 percent to 556 million rupees, partly helped by a depreciation of the rupee but profits were flat at 31 million rupees.

The firm said it was hit by a 31 million rupee loss on forex denominated loans.

"The future appears to be challenging due to the emerging competition from within the country and the region," chairman Vijaya Malalasekera told shareholders in the annual report.

"Additionally, the slow demand from existing markets would curtail our export orders."

Chief executive Amila Jayasinghe said there was research and development spending on lubricants in 2012, which was expected to bring benefits in the future.

"With three new players entering the Graphite mining business in Sri Lanka, the year ahead looks to be very competitive," Jayasinghe said.

"We have increased training and exploration activities to make sure the new entrants do not compromise our strategic advantage.

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READER COMMENT(S)
2. sameera tennekon Apr 03
Average investment for value addition is around us$ 5 m which is a huge amount in Sri Lnakan context. Need foreign expertise and high tech machines rather than labor intensive manufacturing methods.
1. Frederick Mar 07
From what Iam aware high quality graphite of the Sri Lanan variety is very much in demand in world markets.Maybe they are still following age old mining practices.Have you looked into the possibility of value added products. Is it a case of no funding to make improvements.The standard explanation