The Central Environmental Authority (CEA) has granted provisional approval to Lanwa Sanstha Cement Corporation (Pvt) Ltd owned by businessman Nandana Lokuwithana to import thousands of tons of coal via Hambantota Port for a steel company he plans to set up in the Mirijjawila export processing zone (EPZ). The concept is in contravention of President Gotabaya [...]

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Coal ban flouted by big businessman; CEA gives nod despite missing data

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The Central Environmental Authority (CEA) has granted provisional approval to Lanwa Sanstha Cement Corporation (Pvt) Ltd owned by businessman Nandana Lokuwithana to import thousands of tons of coal via Hambantota Port for a steel company he plans to set up in the Mirijjawila export processing zone (EPZ).

The concept is in contravention of President Gotabaya Rajapaksa’s avowed policy to stop coal-powered industries, environmentalists said. Meanwhile, the Chinese-run Hambantota International Port Group is also concerned as it has been actively promoting the facility as a “Green Port”, authoritative sources said.

Mr Lokuwithana has already started work on a Mirijjawila cement manufacturing plant for which he will also import 20,000 metric tonnes of coal a year. CEA Director General Hemantha Jayasinghe has now written to the Board of Investment (BOI) Chairman granting approval for any additional material — such as coke, blast furnace pellets and iron ore including coal — for use in the proposed steel plant once it is cleared after an environmental impact assessment. The letter is dated July 9, 2021.

According to BOI documents, the developer intends to burn 2000MT of iron ore a day for the steel plant using “a coal-based captive power plant”. Coal usage rate is specified as 285MT a day. He also proposes to employ coal to generate heat for the production of slag cement at the plant currently under construction at Mirijjawila EPZ.

“Use of coal for the cement plant was not indicated in the original application submitted to BOI,” the documents state. This indicates that EIA approval was granted for the cement plant without considering the impact of coal use in the project and that key information impacting the environment had been withheld by the developer.

The iron ore and the coal are to be transported via the same conveyor belt that takes clinker from the Hambantota Port to the cement plant at Mirijjawila.

“Given that the use of coal and steel/ore melting were not activities that were included in the approved activity list in the environmental approval granted to the Mirijjawila EPZ by CEA (by an EIA) we are keen to ensure that emissions from the proposed projects do not negatively impact the environment and adjoining developments including the pharmaceutical zone,” BOI Director General Pasan Wanigasekera said in a letter to Mr Jayasinghe in May.

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