Mining fosters sustainable development in Laos

Mining is contributing to local and national development outcomes in Laos, according to a report released by the International Council on Mining and Metals (ICMM) in June 2011.

The report, “Utilising mining and mineral resources to foster the sustainable development of the Lao PDR” recognised that mining has proven a significant contributor to the country’s economy.

It determined that the mining industry represents 80% of foreign direct investment, accounts for 45% of total exports, and is responsible for 12% of government revenues and 10% of national income.

The MMG LXML Sepon mine was the first major commercial private-sector mine established in Laos in 2002. Together with PanAust Ltd’s PBM Phu Kham mine the two mines account for over 90% of total national mining production.

The report highlighted the following Sepon contributions for their long-lasting and positive impact on both Sepon employees and local stakeholders:

  • In just nine years of operation average incomes at Sepon have increased seven-fold. The result of these increases in wealth is evidenced by changes in food security, improved housing and an increase in the number of motorbikes, mobile phones, refrigerators, water pumps and cars purchased.
  • In 2010, Sepon employed 2,300 people through direct employment, 1,600 by means of indirect employment and 9,750 people by means of induced employment.
  • In 2010 Sepon allocated a budgeted training expenditure for employees of US$6,403,825.
  • In 2010, Sepon contributed US$412,044 to its Social Development Trust Fund.
  • In 2007, Sepon was responsible for providing a total income of US$391,000 to local Lao suppliers.

The ICMM’s Utilizing mining and mineral resources to foster the sustainable development of the Lao PDR report is available for viewing and download on the ICMM website:

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