MMG LXML Sepon presents royalty cheque to Lao government
MMG LXML Sepon presents royalty cheque to Lao government
MMG Lang Xang Minerals Limited (LXML) Sepon presented a royalty cheque for US$7 million to the Lao government last week.
The payment was for the first quarter production period, which ended on March 31.
The payment was presented by the General Manager and Director of MMG LXML Sepon Mr Rick Watsford to the Deputy Minister of Finance Mr Bounchom Ubonpaseuth.
According to MMG LXML Sepon, royalties are additional charges to taxes paid to governments based on the value or amount of metals or minerals produced by companies.
Ninety percent of LXML is owned by MMG Limited and 10 percent by the Lao government.
The Lao government also receives dividend payments through their direct ownership of LXML.
Mr Watsford highlighted that this payment arose from the strong production of copper in the first quarter.
“In making this payment on time, LXML recognises the government's need to manage their cash flow. LXML has always viewed the meeting of our financial commitments as a key obligation in our relationship with the government,” he said.
“This payment is a further sign of the ongoing cooperation between partners in the very successful Sepon operation,” Mr Watsford added.
MMG LXML Sepon has contributed more than US$1.2 billion in direct revenue to Laos since mine production began in 2003.
vientiane times
