Toyota Japan secures Lanka’s first semiconductor plant bid
Toyota Japan is reported to have won the bid for Sri Lanka’s first strategic semiconductor-related industry project to exploit a super-quality vein quartz deposit in Mahagama, Moneragala.
It is believed that Toyota Japan had placed a proposal for a total investment of Rs.18.4bn (US$ 160) in securing this bid. A fully-fledged semiconductor fabrication plant would accelerate Sri Lanka’s growth prospects into a global hub.
Meanwhile, Toyota’s Indian subsidiary – Toyota Bharat was also known to have placed a proposal, a Ministry of Environment and Natural Resources source told The Bottom Line.
Ministry of Environment and Natural Resources had called for project proposals on December 9, 2009, from reputed manufacturers, as well as those having experience in mining and processing of Vein Quartz (Silica) to set up manufacturing plant(s) for value added high-tech products such as fused silica, poly-silicon for semiconductors, solar cells and micro chips. The deadline ended last January 25.
Speaking to The Bottom Line, outgoing Secretary to the Environment Ministry, M.A.R.D. Jayathilake said that the evaluation was still in progress and could not confirm that a conclusion was reached.
“Earlier, Mahaweli Authority posed a problem saying that the land belonged to it. But we managed to resolve by having one of its members on board the panel,” Jayathilake said.
Asked as to why there was no ‘opening’ of proposals in the presence of the bidders, he said that as this was not a formal call for tenders or Expressions of Interest (EoI), the process was not governed by government’s tender procedures and guidelines. He added that he could not comment on the number of proposals received, off hand.
“They were just proposals and so there are no financial commitments indicated or any deadlines involved as such. However, there’s no secrecy and we are fully transparent.”
Jayathileke added that although there had been a previous cabinet memorandum to develop the quartz deposit, only one party had responded then, and as such there was no clear cabinet decision reached.
“A cabinet paper was submitted over six years ago. However, the then Minister Champika Ranawaka wanted to go for fresh proposals as the requirements have changed,” he said.
The Bottom Line learns, however, that the Geological Survey and Mines Bureau had previously called for proposals by advertisement dated November 20, 2008.
When inquired on the potential Sri Lanka would have in the semiconductor industry, an industry expert said on grounds of anonymity that, if the country was to become a commercial and knowledge hub, the government should opt for a high-yielding project plan.
“Under the normal extraction and disintegration process only a powder can be obtained between the range of 15 and 18% of the raw vein quartz input whereas for higher returns we should target the manufacture of micro-powder which has a return of over 25% of the raw material,” he said.
It is learnt that Toyota Japan’s proposal anticipates achieving value addition levels of up to 1,700% and purity levels of 99.99999% essential for the manufacture of high-quality semi conductors.
Although a certain interested party had requested Toyota Japan to consider two other silica mines, one in the Matale District and another in the Ratnapura District, Toyota has reportedly turned down the alternate sites due to their small magnitude of half an acre, and had ruled out that the two sites were feasible. It is learnt that the party in question had also submitted a proposal with a mere Rs.200
as the total investment.
The Mahagama Vein Quartz deposit is located east of Embilipitiya and in close proximity to the Burusita Weva in the Udawalawe area within the Moneragala District and is about 270km from Colombo, about 75km from Hambantota and about 153km from the Port of Galle.
At present, only one company based in Kandy claims to be ‘the sole legitimate quartz processing industry in Sri Lanka’ with ‘the industrial infrastructure to practice a systematic and professionally managed operation.’ The company purports to export nearly 6,000 tonnes of processed quartz to Japan, South Korea, Singapore and other markets. Sri Lanka is recognised as a rich source of quartz and the company estimates the country to contain over 20 million tonnes of quartz deposits.
Despite the global financial crisis, the semiconductor industry grew from US$ 249 bn in 2008 to US$ 260 bn by 2009 and is dominated by USA, South Korea, Japan and the European Union. (SF)
TBL
Toyota Japan is reported to have won the bid for Sri Lanka’s first strategic semiconductor-related industry project to exploit a super-quality vein quartz deposit in Mahagama, Moneragala.
It is believed that Toyota Japan had placed a proposal for a total investment of Rs.18.4bn (US$ 160) in securing this bid. A fully-fledged semiconductor fabrication plant would accelerate Sri Lanka’s growth prospects into a global hub.
Meanwhile, Toyota’s Indian subsidiary – Toyota Bharat was also known to have placed a proposal, a Ministry of Environment and Natural Resources source told The Bottom Line.
Ministry of Environment and Natural Resources had called for project proposals on December 9, 2009, from reputed manufacturers, as well as those having experience in mining and processing of Vein Quartz (Silica) to set up manufacturing plant(s) for value added high-tech products such as fused silica, poly-silicon for semiconductors, solar cells and micro chips. The deadline ended last January 25.
Speaking to The Bottom Line, outgoing Secretary to the Environment Ministry, M.A.R.D. Jayathilake said that the evaluation was still in progress and could not confirm that a conclusion was reached.
“Earlier, Mahaweli Authority posed a problem saying that the land belonged to it. But we managed to resolve by having one of its members on board the panel,” Jayathilake said.
Asked as to why there was no ‘opening’ of proposals in the presence of the bidders, he said that as this was not a formal call for tenders or Expressions of Interest (EoI), the process was not governed by government’s tender procedures and guidelines. He added that he could not comment on the number of proposals received, off hand.
“They were just proposals and so there are no financial commitments indicated or any deadlines involved as such. However, there’s no secrecy and we are fully transparent.”
Jayathileke added that although there had been a previous cabinet memorandum to develop the quartz deposit, only one party had responded then, and as such there was no clear cabinet decision reached.
“A cabinet paper was submitted over six years ago. However, the then Minister Champika Ranawaka wanted to go for fresh proposals as the requirements have changed,” he said.
The Bottom Line learns, however, that the Geological Survey and Mines Bureau had previously called for proposals by advertisement dated November 20, 2008.
When inquired on the potential Sri Lanka would have in the semiconductor industry, an industry expert said on grounds of anonymity that, if the country was to become a commercial and knowledge hub, the government should opt for a high-yielding project plan.
“Under the normal extraction and disintegration process only a powder can be obtained between the range of 15 and 18% of the raw vein quartz input whereas for higher returns we should target the manufacture of micro-powder which has a return of over 25% of the raw material,” he said.
It is learnt that Toyota Japan’s proposal anticipates achieving value addition levels of up to 1,700% and purity levels of 99.99999% essential for the manufacture of high-quality semi conductors.
Although a certain interested party had requested Toyota Japan to consider two other silica mines, one in the Matale District and another in the Ratnapura District, Toyota has reportedly turned down the alternate sites due to their small magnitude of half an acre, and had ruled out that the two sites were feasible. It is learnt that the party in question had also submitted a proposal with a mere Rs.200
as the total investment.The Mahagama Vein Quartz deposit is located east of Embilipitiya and in close proximity to the Burusita Weva in the Udawalawe area within the Moneragala District and is about 270km from Colombo, about 75km from Hambantota and about 153km from the Port of Galle.
At present, only one company based in Kandy claims to be ‘the sole legitimate quartz processing industry in Sri Lanka’ with ‘the industrial infrastructure to practice a systematic and professionally managed operation.’ The company purports to export nearly 6,000 tonnes of processed quartz to Japan, South Korea, Singapore and other markets. Sri Lanka is recognised as a rich source of quartz and the company estimates the country to contain over 20 million tonnes of quartz deposits.
Despite the global financial crisis, the semiconductor industry grew from US$ 249 bn in 2008 to US$ 260 bn by 2009 and is dominated by USA, South Korea, Japan and the European Union. (SF)
TBL
