REG - Capital Metals PLC - Publication of New National Minerals Policy

Capital MetalsAnnouncement

11/02/2026 09:15

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RNS Number : 5963S  Capital Metals PLC  11 February 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
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LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

11 February 2026

 

Capital Metals PLC

("Capital Metals" or the "Company")

 

Publication of New National Minerals Policy

 

Capital Metals (AIM: CMET), a mineral sands company approaching mine
development stage at its high-grade Taprobane Minerals Project in Sri Lanka
(the "Project"), welcomes the publication by the Government of Sri Lanka of
the country's new National Minerals Policy (the "Policy").

 

The Policy has been under development since the new government was elected in
late 2024 and this is the first time it has been revised since 1999. The
Policy recognises the significant role the mineral sector can play in terms of
employment and foreign investment at a time when both are crucial to the
revival of the Sri Lankan economy. This is further reflected in the
government's recent transfer of responsibility for the minerals sector from
the Ministry of Environment to the Ministry of Industry and Entrepreneurship
Development ("Ministry of Industry"), recognising the need for the mining
sector to be proactively advanced.

 

The Policy was prepared with input from all stakeholders, including from
Capital Metals and other industry participants. It has as a primary objective
to determine the extent of the resource wealth of the nation, which is known
to be significant but for which research has been hampered by red tape and
corruption under previous governments. The Policy also seeks to provide
guidelines that will help in the creation of an appropriate administrative,
legal, and functional framework for managing the national mineral wealth
sustainably by luring investments, generating employment, boosting
competitiveness, and adopting modern practices in exploration, mining,
processing, and value addition in compliance with economic development and
environmental concerns.

 

The Policy allocates responsibility for guidance on value addition to the
Geological Survey and Mines Bureau ("GSMB"). Capital Metals has been in active
discussions with the GSMB regarding practical value addition solutions. The
Policy is also expected to free up the process for granting mining and
exploration licences, which has been effectively frozen since the GSMB was
transferred into the purview of the Ministry of Industry, as the GSMB resets
its practices in accordance with the new Policy.

 

Capital Metals is well placed to assist in the fulfilment of key Policy
objectives including acquiring knowledge of the Company's mineral resources
through ongoing exploration and evaluation of coastal deposits and leading by
example through the introduction of modern mining practices and environmental
stewardship, aligned with world leading Australian standards which are well
regarded in Sri Lanka.

 

The Policy was originally expected to be published in October 2025 and
therefore its delay will impact the timing of a Final Investment Decision
("FID") which the Company is now guiding to occur in Q2 this year. All pre-FID
workstreams within the Company's control, including finalising development and
logistics plans and advancing financing discussions, are progressing well but
can only be completed in parallel with the final government approvals
required. A further update on technical and operational progress will be
announced in the near future.

 

Greg Martyr, Executive Chairman of Capital Metals, commented:

 

"The publication of the new National Minerals Policy is a strong statement
that the recently elected Sri Lankan Government is open for business in the
minerals sector and is being co-operative and proactive in encouraging
profitable and responsible mining practices. Capital Metals is proud to be a
key contributor towards enabling the country to execute on its Policy
objectives for the effective and sustainable management of its mineral
resources.

 

This is a very positive formalisation of the shift in attitude we have been
seeing for some time towards the sector, and particularly in the last 18
months as the new government focusses on eliminating corruption and choosing
key industry sectors which can revitalise the country's economy. We will
continue to work with all stakeholders to bring country's most advanced
mineral sands project to fruition."

 

For further information, please visit www.capitalmetals.com
(http://www.capitalmetals.com) or contact:

 

 Capital Metals plc                                      Via Vigo Consulting

 Greg Martyr (Executive Chairman)
 Vigo Consulting (Investor Relations)                    +44 (0)20 7390 0234

 Ben Simons / Peter Jacob                                capitalmetals@vigoconsulting.com (mailto:capitalmetals@vigoconsulting.com)
 Strand Hanson Limited (Nominated Adviser)               +44 (0) 20 7409 3494

 Ritchie Balmer / Christopher Raggett
 Hannam & Partners (Broker & Financial Adviser)          +44 (0)20 7907 8500
 Andrew Chubb / Leif Powis

 

About Capital Metals

 

Capital Metals is a UK company listed on the London Stock Exchange (AIM:
CMET). We are developing the Taprobane Minerals Project in Sri Lanka,
approximately 220km east of Colombo, containing industrial minerals including
ilmenite, rutile, zircon, and garnet. The Project is one of the highest-grade
mineral sands projects globally, with potential for further grade and resource
expansion. In 2022, a third-party Preliminary Economic Assessment provided a
Project NPV of US$155-235m based on existing resources, with further
identified optimisation potential. We are committed to applying modern mining
practices and bringing significant positive benefits to Sri Lanka and the
local community. We expect over 300 direct new jobs to be created and over
US$150m in direct government royalties and taxes to be paid.

 

Visit our website:

www.capitalmetals.com (http://www.capitalmetals.com)

 

Follow us on social media:

 

X: @MetalsCapital (https://twitter.com/MetalsCapital)

LinkedIn: @Capital Metals plc (https://uk.linkedin.com/company/capitalmetals)

 

 

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