Ministry eyes higher mining production value in 2017
Ministry eyes higher mining production value in 2017
The Ministry of Energy and Mines says the mining sector is anticipating a production value of about 11,742.5 billion kip this year, a little more than in the previous year.
Output will include about 40.5 tonnes of dore (a mixture of gold and silver), 89.2 tonnes of copper cathode, 376,849 tonnes of copper concentrate, 7,971 tonnes of gypsum, and 411,452 tonnes of potash ore.
The ministry expects the total value to be no less than US$1,447.6 million.
With commodity prices rising, the value is forecast to increase further this year, enabling the sector to generate more revenue and contribute more to GDP.
In the last fiscal year, 2015-16, production was valued at 10,893 billion kip, a 6.2 percent decrease from the previous fiscal year.
This occurred because global demand for ores was slow so mining companies temporarily halted their operations, especially iron ore mining projects.
Output in 2015-16 included 643,360 tonnes of gypsum, 76,557 tonnes of copper, 425,760 tonnes of copper concentrate, 625,400 tonnes of potassium, 147,664 tonnes of anthracite and other commodities.
The 2015-16 supply was valued at US$1,308 million, or 93 percent of the plan. Commodities produced for local supply were valued at about US$90.64 million, including 45,242 tonnes of gypsum, 134,199 tonnes of anthracite, 8,571 tonnes of lignite, 478,612 tonnes of limestone and other ores. The rest was exported.
Although the supply value of the mining sector fell by 9 percent, exports accounted for about 50 percent of the country's total export value, mainly the export of copper concentrate worth US$609.6 million, copper worth US$370.3 million, dore worth US$186.2 million, potassium worth US$126.7 million, and lead with a value of US$5.04 million.
The central government has given approval to 80 companies for ore excavation and processing in 143 mining projects. Nineteen Lao companies are involved in 33 projects and 61 foreign companies are managing 110 projects.
Of the 80 companies, 58 have started excavation and 22 are conducting feasibility studies.
With regard to provincial authorisation, 431 companies have been given approval for 550 mining projects. This includes 407 Lao companies engaged in 520 projects and 24 foreign companies managing 30 projects.
The projects involve the mining of lead, iron, salt, coal, limestone, clay, and other minerals.
Laos has given approval to 32 Chinese companies to operate 61 mining projects, including exploration and excavation and the processing of potassium, limestone and other minerals.
Approval has also been given to 12 Vietnamese companies for ore excavation and many of these projects are under way.
