Lao gold producers seek access to mine products
Lao gold producers seek access to mine products
The Lao Gem and Jewellery Traders' Association has suggested that the government should formulate policies for the mining companies in Laos to make their gold and copper products available to domestic jewellery entrepreneurs.
Most mining companies in Laos are mining gold for export, while domestic gold traders have to buy gold or copper products from other countries and some are small gold m iners in Laos, the association's President, Mr Phouvong Phamisith told Vientiane Times recently.
The association needs large quantities of gold to supply its affiliated businesses and there is a view that Lao gold entrepreneurs should benefit from the numerous gold mining projects underway in the country, he said.
This is a major issue causing the price of gold and jewellery in Laos to be high. People would be able to purchase gold and jewellery for cheaper prices if jewellers received raw material from domestic suppliers, Mr Phouvong commented.
The jewellery sector is seeking to promote Lao decorative designs and handmade jewellery as well as promoting tourism and creating job opportunities for local people, he noted.
Lao gold entrepreneurs have not received any benefits yet from gold and copper mining projects in Laos, Mr Phouvong commented, so to allow them to make a greater contribution to socio-economic development, the government should help to solve this issue.
Despite the fact that mining is a major sector which has contributed large amounts of revenue to the government, mines also close once their ore bodies are exhausted.
Among the large mining companies operating in Laos are Phu Bia Mining Ltd, MMG LXML Sepon and the Phonesack Group.
So far, the Lao Gem and Jewellery Traders' Association has not received any response from the government in relation to its proposal.
Mr Phouvong compared jewelers with furniture makers, noting that furniture makers at least have access to a domestic wood supply.
By comparison, Lao jewelers have to import gold, dore and copper from foreign countries to produce jewellery for sale on the domestic market.
Mr Phouvong explained that this is the reason why many visitors and foreigners don't tend to purchase gold in Laos as they may be able to get it cheaper somewhere else, adding that most Lao people still tend to prefer Lao jewellery for its designs.
The gold price is now about 5.5 million kip per baht weight (15 grammes) but it fluctuates slightly depending on foreign currency exchanges.
