Vietnam firm granted US$522 million salt mine licence
Vietnam firm granted US$522 million salt mine licence
The Lao government has given a licence to a Vietnamese company to build a US$522.4 million salt mine in Khammuan province, according to the Ministry of Energy and Mines.
The investor, Vietnam Chemical Group (Vinachem), which is registered as the Viet-Lao Chemical and Rock Salt Company Ltd, signed a 25-year concession agreement with the government in February last year.
Vinachem will mine salt across an area of 1,000 hectares, according to the agreement.
The investor will also build a factory to process 320,000 tonnes of salt a year to supply the Lao market and reduce salt imports, according to the Vietnam Plus, citing Vinachem.
Work on the project is set to begin next month, the news agency reported.
Mining has been one of the main drivers of Laos' gross domestic product growth.
A ccording to the International Council on Mining and Metals, mining represents 80 percent of foreign direct investment in Laos, accounts for 45 percent of its total exports, and is responsible for 12 percent of government revenues and 10 percent of national income, V ietnam Plus reported.
But in June last year the Lao government suspended new mining concessions whose products are to be exported after it was found problems had arisen in the operation of investment projects, notably in the mining sector.
Reports emerged that many investors had not progressed with their projects within an appropriate timeframe after getting approval from the government, with mining projects a significant proportion of these.
The Ministry of Planning and Investm ent is investigating the matter and has warned that those investors who have failed to take action accordingly will have their contracts r evoked.
Deputy Minister Dr Bounthavy Sisouphanthong previously told the Vientiane Times the government wanted to ensure these projects were properly regulated before approving new mining concessions in 2015.
In the meantime, the government is continuing to give licences to mining projects whose pr oducts are needed domestically, such as coal, which is required by cement f actories.
In an interview given to local media during the government's recent open meeting in Vientiane, Minister of Energy and Mines Mr Soulivong Daravong admitted some investors had failed to abide by the agreements they had signed.
Those in breach of their contracts will be invited for talks in the hope of spurring action in line with the agreements.
vientiane times
