On 4 July 2014, General Manager and Director of MMG LXML Sepon Mr Rick Watsford presented a royalty cheque for US$7 million to Vice Minister of Finance Mr Bounchom Ubonpaseuth. The payment was for the first quarter production period ending on 31 March 2014.
Royalties are additional charges to taxes paid to Governments based on the value or amount of metals or minerals produced by companies.
Lang Xang Minerals Limted (LXML) is owned 90% by MMG Limited and 10% by the Lao Government. The Government also receives dividend payments through their direct ownership of LXML.
Rick Watsford highlighted that this payment arose from the strong production of copper in the first quarter.
“In making this payment on time, LXML recognise the Government’s need to manage their cash flow. LXML has always viewed the meeting of our financial commitments as a key obligation in our relationship with the Government. This payment is a further sign of the ongoing co-operation between partners in the very successful Sepon operation,” Mr Watsford added.
MMG LXML Sepon has contributed more than US$1.2 billion in direct revenue to the Lao PDR since mine production started in 2003.
Photo MMG: Chanmy Sisomphone