Mineral exports show large growth
Mineral exports show large growth
The value of Lao mineral exports has increased substantially after the expansion of excavation capacity by both domestic and foreign investors.
In the five years between 2006 and 2010, the total value of mineral exports was US$2 billion which rose to US$8 billion during the years 2011 to 2015, the Ministry of Energy and Mines reported recently.
The major projects involved are the Sepon mine in Savannakhet province, Phubia Mining in Xaysomboun province, potassium in Vientiane and Khammuan provinces as well as the Hongsa Mine in Xayaboury province.
The dividends and tax earned from these exports has made a significant contribution to the government's budget, helping to push economic growth.
Under the corporate social responsibility (CSR) programmes of each of the mining companies considerable investment has been made into improved housing and other facilities for relocated people as well as the provision of financial support for ways that local people can earn a better living, even if they are not mine workers. In this way the sector is also help other sectors to develop.
Investment in mining comes in three forms, investment directly by the government, a joint venture between the government with domestic or foreign investors and private investment by domestic or foreign investors
Expansion of the mining sector has created job opportunities for Lao people amounting to over 15,000 positions, which has helped develop local people's living conditions and some districts have been able to declare their escape from poverty as a result.
Through their CSR programmes mining companies have also helped small and medium enterprises to expand especially in the areas of agricultural produce trading, services and handicrafts.
Around the concession areas, the projects have also developed basic infrastructure such as roads, schools and dispensaries as well as funding UXO clearance.
The government suspended approval for any new investments in mining in 2012 after learning that many investors had breached agreements and relevant laws resulting in the government collecting very little revenue from many projects.
Some projects had also had a negative impact on the environment and livelihoods of local people.
The suspension has given the government time to review its policies and assess the effectiveness of existing projects to make sure Laos can maximise its benefits from the sector.
Some of the problems that were occurring were due to a lack of land surveys and proper allocation, as well as details on how many hectares of land investors were really using and whether it was the amount of land agreed upon in their original proposals.
The government currently is revising its mining policy with the aim of generating more revenue and ensuring the people benefit from mine concession projects.
