Chinese company eyes alabaster mining investment in Attapeu
Chinese company eyes alabaster mining investment in Attapeu
A Chinese company has expressed interest in mining alabaster in Attapeu province after finding out that the world market demand for this mineral is increasing.
The company signed a Memorandum of Understanding with the Lao government to conduct a feasibility study for mining the mineral based on information collected by the Ministry of Planning and Investment.
The government has agreed to an agreement for establishing a joint venture company in Laos which was signed by the Ministry of Finance, as the government representative, and the company.
The government has also agreed to both sides starting negotiations on conditions which include the benefits and obligations for both sides and the environmental and social impact reports before signing the concession agreement, provincial Deputy Governor, Mr Khaenthong Sisouvong told Vientiane Times yesterday.
Both sides currently are in the negotiation stage and are preparing a contract draft to submit for government consideration.
Alabaster stone is naturally found on Phoukanghong Mountain in rural Vangkhaen village of Phouvong district, which is roughly 40 km away from downtown Phouvong.
Mr Khaenthong believes that the mineral will be processed in the country for export to overseas markets, while some may be directly exported if they cannot process it locally.
“Some information regarding this resource in the area we have already obtained after studying for many months,” he said. The concession area will cover about 40 sq km and will be for a 20-30 year period, added Mr Khaenthong.
The Prime Minister issued an order to halt feasibility studies into alabaster on the mountain in September last year.
The PM's order came after the provincial authorities signed Memorandums of Understanding with 48 companies to conduct project surveys on the stone resource before the excavation process could begin.
The order to halt these projects was made because the government wanted to inspect the stone resource and assess its value in terms of national socio-economic development.
The high sales price of alabaster has brought local people flocking to Phoukanghong Mountain, where they have been digging up blocks of the mineral to sell despite the government ban last year. The provincial authorities have now controlled the illegal removal of the rocks by local people.
