Mining sector praises higher earnings, calls for better management
Mining sector praises higher earnings, calls for better management
The energy and mining sectors have generated revenue of more than 94.34 trillion kip for the period 2011-15, which has increased by 9.22 percent compared to 2006-2010 and contributed 12 percent of Gross Domestic Product (GDP).
In his opening remarks at the mee ting on mining investment management 2015-16 held in Vientiane yesterday, Minister of Energy and Mines Dr Khammany Inthirath said the average revenue increase was about 18.86 trillion kip a year.
The mining sector has generated more than 13.34 trillion kip over five years, he said, noting that a positive achievement is often accompanied by negative consequences, and cited the failure of various mining companies to comply with the regulations.
The development plan for the mining industry was not clear and the roles of the various responsible departments were not clearly assigned, resulting in ineffective checks on mining projects in Laos, he added.
Currently a total of 657 companies operating 942 projects are carrying out surveys for mineral quarries, operating at mine pits and searching for mineral deposits.
A total of 226 companies, operating 392 projects, have been approved by the government, while 431 companies running 550 projects have been approved by provincial authorities.
Some 511 companies with 693 mineral projects are operating businesses. A total of 80 companies out of 511 companies with 143 projects have been approved and are being overseen by the government.
A total of 431 companies out of 511 companies with 550 projects have been approved and authorised by the provincial authorities.
As part of its development policy, the government is aiming for more effective revenue collection within the mining sector in the years to come.
The Department of Mines and Department of Geology and Minerals brought together senior officials from relevant sectors across the country, foreign experts and diplomats, and representatives of mining companies to meet at the three-day conference taking place in Vientiane from October 18-20.
The meeting is also discussing mining investment management, environmental issues, and the revision of the Law on Minerals.
In addition, meeting participants are seeking more urgent and effective penalties for mining companies that fail to follow government guidelines under the agreements signed.
Dr Khammany said the mining sector has long been known as a key driver of economic growth.
So, more effective management of mining projects is critically needed to ensure better revenue collection in the near future, he added.
