Deputy Lao PM checks out contractual compliance of Huaphan mining operations


Deputy Prime Minister Saleumxay Kommasith (2nd from left) and provincial leaders visiting a mining project in Huaphan province on March 13. - VT/ANN

VIENTIANE: A high-level government delegation led by Deputy Prime Minister Saleumxay Kommasith on March 13 visited Huaphan province to assess the progress of mining operations.

Saleumxay, who is in charge of economic and foreign affairs, was accompanied by provincial leaders including the Deputy Governor of Huaphan province, Phoutphanh Keovongxay, and officials from various government departments.

The visit aimed to reinforce the government’s commitment to responsible mining, transparency, and sustainable development.

Saleumxay urged mining managers to strictly adhere to their contractual commitments, mining standards, and environmental protection regulations. He stressed the importance of completing all legal documentation, ensuring social responsibility, and continuing support for local development initiatives.

He reiterated the government’s policy to promote well-managed and responsible mining operations, especially those run by companies that demonstrate sincerity, efficiency, and a commitment to uplifting remote and historically significant areas, aiming to bring their development on par with other regions.

The Deputy Prime Minister said all mining operations must adhere to national policies, laws, and regulations to maximise the benefits for Laos and its people.

He made reference to the challenges and concerns related to mining, expressing the desire for operations to be efficient, transparent, and beneficial to local communities.

The visiting delegation also inspected the rare ore mining and processing project in Huameuang district, run by Lao-China Northern Rare Minerals Development Company Limited.

The company signed a contract with the government in January 2022, authorising exploration and extraction over an area of five square kilometres.

Since beginning operations in 2023, the company has exported over 10,300 tonnes of rare ores, generating about US$58 million in revenue and contributing about US$13 million to the state budget.

The team also reviewed the mining, processing and export activities of a mining company in Hiem district.

This company secured a 14-year contract with the government in October 2021 to extract iron ore, gold, and rare ores from a 12.56-square-kilometre site.

The company made an advance payment of US$2 million to the government and financed the reconstruction of a 30-kilometre road from Thamla village to the urban centre of Hiem district.

Additionally, the company has provided support to Huaphan province in excess of its contractual obligations, contributing to local development projects in 2023 and 2024.

During their visit, the government delegation toured a coal mine in Ham village, Xamneua district, as well as historical landmarks, including revolution-era caves.

The visit highlights the government’s ongoing efforts to ensure that mining operations contribute to Laos’ economic growth while prioritising environmental sustainability and community development. - The Phnom Penh Post/ANN

 

 

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