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Sri Lanka tile maker warns of clay shortages
Release time:2014/04/16

 Sri Lankan tile manufacturer Royal Ceramics says delays in issuing government mining licenses has created clay shortages that hurt earnings and that it might be forced to import raw materials at higher cost.

"Our production lines continued to be dogged by high energy costs and shortages of vital raw materials including ball clay and feldspar which are used to manufacture tiles," Royal Ceramics managing director Nimal Perera told shareholders in the firm\\\\\\\'s annual report.

. Raw materials, which account for about 15 percent of costs, are bought from local suppliers who face capacity shortages, Perera said.

. "We believe the government could use its influence to better manage the supply shortage by issuing new permits for mining."

. Sri Lanka has enough clay reserves but rising production costs are hurting company earnings, the report said.

. "We also continue to voice our concern over shortage of clay and feldspar from local suppliers," it said.

. "We estimate Sri Lanka has clay and feldspar reserves for many years. But delays in mining these deposits are hurting our raw material inputs.

. "The next best option would be to source our raw materials from China, Taiwan or India, which would be more expensive, but high in quality."

. Some of the island\\\\\\\'s clay deposits lie in lands used for rice cultivation mining of which is a sensitive issue, or have been built over.