Supreme Court Reaffirms Environmental Rule of Law in Iron Ore Mining Case

In a landmark judgment that underscores the primacy of environmental governance, Sri Lanka's Supreme Court has overruled a 2011 decision by the Court of Appeal that mandated approval of a magnetite mining project by private partnership Uva Magnetite. The judgment highlights not just procedural deficiencies but the systemic necessity of upholding the rule of law in environmental decision-making.

- By Yohan Liyanage

The court was tasked with reviewing whether a 2011 Court of Appeal decision rightly compelled the Conservator of Forests to gazette the approval of Uva Magnetite's mining project under Section 23BB(4) of the National Environmental Act, despite claims from state officials that such approval had not been formally granted.

The case originated in 2003, when Uva Magnetite received exploration rights for a magnetite-rich grid in Monaragala. Following promising results, the company submitted an Environmental Impact Assessment (EIA) and lobbied for a commercial mining license. However, tensions flared over the project's approval process. Although a Technical Evaluation Committee (TEC) formed by the Forest Department had conditionally recommended the project on a trial basis with caveats, including strict monitoring and opposition to raw material export, state officials argued this did not equate to formal endorsement. Public opposition further complicated matters, with concerns raised about ecological threats, wildlife corridors, and the lack of transparency in awarding mining rights.

At the heart of the dispute was whether the Conservator of Forests, as head of the Project Approving Agency, had a legal obligation to publish the EIA in the Gazette. Uva Magnetite insisted the approval was implicit through TEC recommendations and sought a Writ of Mandamus from the Court of Appeal, which was granted.

But state agencies pushed back. The Conservator General of Forests argued that: The TEC's endorsement was conditional and limited in scope. The Central Environmental Authority had not formally concurred. National policy opposed exporting raw minerals without value addition.