MMG CEO, Mr Andrew Michelmore, presented a cheque for US$91 million to Finance Minister, Dr Lien Thikeo, in Vientiane on 7 April 2014. This final instalment brings direct revenue paid by LXML Sepon to the Lao Government in respect of 2013 earnings to US$136 million.
Since production commenced in 2003, LXML has contributed over US$1.123 billion to the Lao PDR in direct revenue payments, including taxes, royalties, and dividends.
The Lao Government is a ten per cent shareholder of LXML Sepon.
“As one of the largest taxpayers in the Lao PDR, MMG LXML Sepon is extremely proud of its ongoing contribution to progress, economic development, and poverty alleviation, particularly in communities close to the mine,” said Mr Michelmore.
“We are continuing our efforts to explore and develop the business to earn the privilege to grow Sepon and extend the life of the mine. I would like to thank the Lao Government for its partnership and support in achieving these goals together,” he said.
The Lao PDR also benefits from hundreds of millions of dollars each year in indirect revenue generated by the mine, through payments to Lao employees, local businesses, and suppliers.
MMG LXML has invested millions of dollars in community development in Vilabouly District in the decade since the mine commenced operations to assist the Lao Government alleviate poverty.
MMG LXML Sepon is developing the next generation of Lao professionals by providing training in technical trades and management to Lao employees. The company is steadily increasing the number of Lao employees in senior leadership positions.
MMG LXML Sepon expects to produce between 88,000-93,000 tonnes of copper in 2014.
MMG LXML Sepon is continuing to explore and study options to expand copper production and produce gold from produce oxide and primary ores. These options are designed to extend the life of the Sepon mine to ensure the Lao PDR continues to receive significant revenue in future.
Mr Andrew Michelmore (fifth from left) handed over a profit tax for 2013 earnings to Finance Minister, Dr Lien Thikeo, in Vientiane on 7 April 2014 (Photo MMG / Chanmy Sisomphone)