Companies to explore mining, hydropower possibilities
The Phouphieng Mineral Export-Import Sole Company is teaming up with the Mekong Mining Company to study the possibilities for bauxite and potassium mining and hydropower in Laos.
A Memorandum of Understanding was signed on Tuesday in Vientiane between Phouphieng Company President Mr Vilaysith Liumxayachak and Mekong Mining Company President Mr Andrew Kent. Officials from both sides attended, along with the Vice President of the National Science Council, Dr Maydom Chanthanasinh.
To explore potassium deposits, the companies will investigate sites at Somsa-ard and Palay villages in Outhoumphon district, Savannakhet province, and in Thaphabath district in Borikhamxay province.
For bauxite and hydropower, the project involves areas in Champassak, Xekong and Attapeu provinces, with 100 percent of the financial backing coming from the two companies.
“The companies expect to spend about US$70 million during the first three years of study,” said Mr Vilaysith. The study will provide information on the project's economic feasibility for investors.
“We also plan to establish facilities for ore excavation and power generation for future sale and export,” he said.
Laos' abundant natural resources offer opportunities to produce minerals and electricity for sale and export.
Phouphieng is working with overseas companies, notably the Mekong Mining Company, to propose projects to the government at each level of implementation, Mr Vilaysith said.
The Phouphieng Mineral Export-Import Sole Company has previously obtained potassium mining rights from the government and in the future will request rights for hydropower plant construction and bauxite mining.
Close collaboration between the two companies will help the project to effectively and successfully meet its goals, Mr Kent said.
“We also need the support of the government to provide us with opportunities in investing in these sectors and to provide cooperation at every level,” he said.
The project will offer the opportunity for closer cooperation through a joint venture between the two companies in contributing to socio-economic development
