MMG LXML Sepon handed over a dividend payment of US$ 14.4 million to the State Enterprise Finance Management Department of the Ministry of Finance on 21 June 2010.
Prior to this, MMG LXML Sepon had already brought forward a US$ 2 million dividend in 2009 to support the hosting of the 25th South East Asian Games. In total, dividend payments in the last 12 months reached US$ 16.4 million.
The Government has been a shareholder in the project since the 30th of June 2007 when it exercised its option to acquire a 10% holding in LXML Sepon under the MEPA (the Minerals Exploration and Production Agreement), a contract between LXML and the Government made in 1993 when the two parties agreed to establish LXML Sepon to undertake mining exploration and project development.
Mr. Sithisone Thepphasy, Director General of the State Owned Enterprise Finance Management Department mentioned at the hand over ceremony that the contribution of the Sepon mine has helped social-economic development in line with the policies of the Government and the project has supported development in Savannakhet province as well as the Vilabouly community. This has helped locals by providing more jobs and improving living conditions changing the face of the province. In addition, the Sepon mine has truly implemented international standards regarding its environmental management.
“More importantly, the Government believes in having a good international level partner such as MMG LXML Sepon and wishes that the cooperation will continue to bring mutual benefits to both sides,” added Mr. Sithisone.
”MMG LXML is happy to deliver this dividend to the government. As commodity prices in world markets have improved, so has the operating environment for the Sepon mine. For 2009, MMG LXML was able to deliver taxes including profit, royalties, income and rental fee to the amount of US$ 80.5 million, said Mr. Saman Aneka, MMG LXML Sepon Director. Since commencing operation the project has paid about US$ 445 million to the government from 2003-2009.
Attending the hand over ceremony was Mr. Saman Aneka, MMG LXML Sepon Director, Mr. Sithisone Thepphasy, Director General of State Owned Enterprise Finance Management Department, Ministry of Finance, as well as Mr. Andrew Patterson, MMG Senior Manager Business Support for Asia, and other high ranking officials from the department.
Photo: left to right, Mr. Sithisone Thepphasy, Director General of State Owned Enterprise Finance Management Department, receiving the dividend cheque from Mr. Saman Aneka, MMG LXML Director, Mr. Andrew Patterson, MMG Senior Manager Business Support for Asia, and government high ranking officials from the department.
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