The government will revise its mining policy with the aim to generate more revenue from mine concession projects, a senior government official has said.
The move comes after the government has learnt that Laos has collected unreasonably little from many mining projects it has previously granted concessions to investors for.
The Lao government suspended the granting of new concessions for mining projects in June last year after finding that the government has collected very little revenue from many projects.
Workers at the Sepon mine in Savannakhet province load finished sheets of copper plate onto a conveyor belt. (File photo)
In addition, officials have also found that many investors have not taken action to carry out mining projects after being given concessions from the government.
Officials in charge are currently inspecting mine projects across the country as the government has announced it will revoke the concessions for projects whose operators have failed to follow the agreements they made with the government, notably those whose progress has stalled.
Deputy Minister of Planning and Investment Dr Bounthavy Sisouphanthong said officials will finalise and finish inspection by 2014 before revising the policy.
“The government plans to complete the revision of the policy before consideration will be given to granting new concessions after 2015,” he toldVientiane Times last week. “We feel that we have gained little from some previous concessions,” Dr Bounthavy said.
In total, the government has approved concessions for 470 mine projects amounting to US$5.9 billion. Of these, 204 projects have been approved by the central government and the rest by local authorities.
Minister of Planning and Investment Mr Somdy Douangdy told the National Assembly's 6th ordinary session that closed last week that officials have finished the inspection and assessment of 170 mine projects which were approved by the central government.
Some 14 mine projects were rated as grade ‘A', 92 projects as grade ‘B', 56 projects as grade ‘C', while eight projects scored a ‘D'.
Mr Somdy told the parliament that the ministry will propose to higher authorities that they should revoke the eight projects that scored a ‘D'.
Eight standards have been used to assess the mine projects including whether investors have taken immediate action to carry out the projects, compliance with relevant agreements, regulations and laws, environmental management and contribution to communities living nearby mining operations.
Mr Somdy told the parliament that officials in charge will further carry out work to complete the inspection and assessment, admitting that after one year of work the assessments are yet to be complete.
BySouksakhone Vaenkeo (Latest Update December 30, 2013)
It breaks my heart that the government has just figured this out now. They should have been aware of this a long time ago. As they now realize by themselves it's a big corruption exploited by the so-called neighboring countries and the loss of income tax for many years. Other countries have already known this problem decades ago. Very SAD!!!!!
It breaks my heart that the government has just figured this out now. They should have been aware of this a long time ago. As they now realize by themselves it's a big corruption exploited by the so-called neighboring countries and the loss of income tax for many years. Other countries have already known this problem decades ago. Very SAD!!!!!
It breaks my heart that the government has just figured this out now. They should have been aware of this a long time ago. As they now realize by themselves it's a big corruption exploited by the so-called neighboring countries and the loss of income tax for many years. Other countries have already known this problem decades ago. Very SAD!!!!!
