Prime Minister Sonexay Siphandone.

Govt orders review of effectiveness of mining projects

The government has directed authorities to review the effectiveness of all approved mining projects in Laos after almost 70 of more than 90 companies authorised to carry out pilot mining operations performed ineffectively.
At the government’s open meeting held during December 26-27, Prime Minister Sonexay Siphandone instructed sectors responsible for overseeing mining operations to conduct a study on the type of minerals that should be reserved and on which mining projects should be suspended.
The sectors in-charge of these activities need to identify which mining projects should be allowed to develop and generate income to address the country’s economic challenges.
The meeting, which was attended by the Mayor of Vientiane and provincial governors and representatives of state agencies, agreed to urgently address ineffective mining projects which have caused great losses for the nation.
Over the past two-and-a-half years, the government authorised more than 37,678 hectares of land for pilot mining operations, but the benefits to the nation have been negligible.
The pilot mining scheme was designed to explore new revenue streams under the government’s national agenda for 2021-23 that aims to address financial and economic difficulties.
The meeting’s participants agreed that the solution to ineffective mining projects need to be submitted to the government’s monthly meeting in January 2024.
At Wednesday’s meeting, the Prime Minister also ordered action to address the country’s economic and financial difficulties by enforcing measures already approved by the government to stabilise exchange rates, skyrocketing inflation and high debt owed to foreign countries. 
The sectors overseeing these matters need to place greater emphasis on boosting national revenues by modernising the systems for collecting revenue at border checkpoints and state service fees.
The government also noted that it is essential to create new revenue streams while minimising financial leaks. For budget expenditure, priority is being given to paying the salaries of state officials, repaying debts and spending on expenses related to Laos’ Asean Chairmanship. Non-essential projects will need to be suspended.
The government stressed the need to expedite the development of wind power and power transmission line projects to overcome energy shortages in some parts of the country.
One of the most important issues raised at the meeting was the effort to improve the investment climate in order to attract more foreign investment to Laos.
The cabinet members agreed to cut red tape to facilitate business and to inspect investment projects that have been approved by the government.
Projects operating with no progress or little progress will be notified, warned or even have their licences revoked if investors do not intend to further develop them.
The concerned sectors also need to do more to boost domestic production to replace imports of items that Laos can produce for domestic consumption and export.

By Somsack Pongkhao
 (Latest Update December 28, 2023)