Govt to cancel 15 mining projects

The Geology and Mines Department of the Ministry of Energy and Mines plans to cancel 15 previously approved mining projects this year after evaluations have found them unproductive.

The Director General of the department, Mr Thongphat Inthavong, interviewed by a Vientiane Times reporter last week, said “We have evaluated 15 projects this year and have decided to shut them down because they are ineffective.”

These are small scale projects that investors are finding it difficult to keep running. Considering also that their contracts have expired, it has become necessary to discontinue operations.

Most of these projects are located in the northern provinces , with some in central areas. Some are foreign investment projects.

The department plans to monitor and assess all ineffective projects, and encourage investors to continue the implementation of other projects after signing an agreement with the government. If companies cannot carry out their projects with an appropriate level of productivity, the department will revoke the agreement.

According to the Director General of the department, official letters will be sent to the companies involved to inform them that their operations will have to shut down. If any company decides it wants to continue, it will have to produce a plan of operation for consideration by the department, which may then allow the project to continue.

“It is our policy to promote investment,” Mr Thongphat said. “But sometimes we have to cancel unproductive projects and promote those operated by other companies with development potential.”

The department intends to help all approved projects reach their objectives.

According to current statistics from the department, there are currently 119 companies operating 193 mining projects in Laos . Ninety-eight of them, including 59 foreign companies managing 169 projects, are supervised by the department.

The government has authorised numerous projects and, if all of them are implemented effectively, they will surely increase incomes, he said.

In 2006 the country earned about 4.8 trillion kip (about US$500 million) from mining exports. The department predicts mining exports will increase by one third in the near future.

At present the department is continuing to monitor mining projects in central and southern provinces, and will conclude its inspection this month.

By Manichanh Pansivongsay
Vientianetimes