PM Sonexay Siphandone.

Benefits gained from piloted mining operations too small: PM

Almost 70 out of more than 90 companies approved by the government to carry out piloted mining operations over the past two and a half years have proved to be ineffective, the Prime Minister has said.
Delivering a speech at the energy and mining sector’s annual meeting recently, Prime Minister Sonexay Siphandone said piloted mining operations had caused the country a lot of problems and huge losses.
“Only 5 or 6 of more than 90 companies approved by the government to carry out piloted mining operations have performed well,” the premier told the meeting, which was attended by Minister of Energy and Mines Mr Phosay Sayasone and other senior officials.
“More than 37,678 hectares of land were authorised for piloted mining operations, but the benefits to the government have been negligible.”
The piloted mining scheme was designed to explore new revenue streams under the government’s 2021-23 national agenda to address financial and economic difficulties.
Under the piloted projects, the government authorised companies to excavate and export minerals, with the aim of generating more income to help the government address its economic challenges.
However, these operations drew strong complaints from members of the public after the President of the State Inspection Authority, Dr Khamphanh Phommathat, revealed the findings of a state inspection report at the 6th Ordinary Session of the National Assembly’s 9th legislature last month.
The poor performance of piloted mining projects was highlighted in his report, sparking great concern about the loss of natural resources through this type of project.   
Dr Khamphanh said the amount of minerals recorded at the mine site and at the end border checkpoint was significantly different, suggesting the need for investigation. In addition, the negative economic and social impacts from this mining scheme have proved to be severe.
PM Sonexay acknowledged that poor management of piloted mining projects meant that some mining companies were unwilling to cooperate with state agencies and to fully comply with agreements signed with the government.
The PM said piloted mining projects had also resulted in land awarded to mining companies under concession agreements overlapping with other development projects. Illegal excavation of minerals had also occurred as a result of poor oversight and management.
The premier instructed the sectors concerned to review the operations of the mining sector, using lessons learnt from past operations to improve management and coordination among state sectors. 
The PM said mining projects needed to take into account environmental issues, the worth of the project and market demand, adding that it was essential to process minerals before export rather than exporting raw materials.

By Somsack Pongkhao
 (Latest Update December 26, 2023)