Govt to plough minerals revenue into agriculture
Govt to plough minerals revenue into agriculture
The government has vowed to use the revenue earned from the export of mineral products to ensure sustainable economic growth, according to the Strategy on Export of Mineral Products.
“Mineral products can create a large amount of money. However, if we spend that money unwisely, the revenue can quickly disappear, therefore we should divide the funds into several parts,” reads the strategy, which was distributed to media during the Lao -Viet Expo earlier this month.
The government is now prom oting domestic and private investment in the mining industry as part of efforts to secure economic growth of 8 percent over the next five years. But many international development partners have expressed concern over the sustainability of economic growth, pointing out that mineral resources will one day be exhausted.
The rate of economic growth has risen to over 7.5 percent in recent years, largely thanks to the export of mineral products. In response to the concerns of the international community, the government has established the Strategy on Export of Minerals Products as a guideline to ensure economic growth is sustainable.
According to this strategy, the government will spend the money earned from the export of mineral products on agriculture, livestock and reforestation, in an attempt to bolster other areas of the economy.
Investors recommend that the government improve agricultural infrastructure to encourage the private sector to invest in agri-business and the food processing industry.
Laos also needs to protect its forestry and water resources to maintain hydropower development.
The government will also use the revenue generated by mineral product exports to create a ‘heritage fund for multi generation prosperity'.
“Our children, grandchildren and great-grandchildren will know and understand clearly that this money was sourced from exploited minerals from underground,” the strategy reads.
According to the Ministry of Industry and Commerce, mineral exports have been increasing steadily. In the 2004-2005 fiscal year, the value of exports in this sector amounted to US$45 million, accounting for just 10 percent of total exports. But by 2008 the export value of natural resources had jumped to US$640 million, accounting for 50 percent of total exports.
The Ministry of Energy and Mines has carried out a geological survey covering 65 percent of the country's land area. The remaining land will be surveyed by local authorities, who aim to complete the process by 2015.
According to the preliminary survey, Laos has large reserves of various minerals as follow: 374 million tonnes of coal ore, 44 million tonnes of limestone , 125 million tonnes of bauxite, 14 million tonnes of iron ore, 128 million tonnes of gypsum, 399 million tonnes of potassium, 182 million tonnes of copper ore, and 17 million tonnes of gold ore.
vientiane times
