Germany supports sustainable development of mining sector
The Federal Republic of Germany yesterday signed documents that will provide 2.5 million euros towards the development of the mining sector in Laos.
The signing took place at an opening ceremony in Vientiane for the Support for Sustainable Development of the Mining Sector project, to be implemented through German-Lao technical cooperation.
In accordance with international best practice, the project supports the implementation of social, environmental and economic aspects for the improvement of management in the mining sector.
Technical cooperation between the German Federal Ministry of Economic Cooperation and Development and the Department of Mines under the Lao Ministry of Energy and Mines will aim to improve the management and supervision of mining activities by providing support to government agencies and civil society and strengthening the government agencies related to mining.
The project is scheduled for five years, with phase 1 to run for three years and phase 2 to run for two years.
In his speech to open the project, Minister of Energy and Mines Mr Soulivong Daravong noted that the mining sector was one of the main sectors increasingly contributing to economic growth in Laos, which reached 8.1 percent in 2011.
Laos has made considerable progress in recent years in establishing comprehensive regulatory and institutional frameworks in the mining sector related to economic, environmental and social safeguards, Mr Soulivong said. However, the implementation of this regulatory framework by the relevant sector agencies is still partially weak or missing.
Through this new Lao-German project, the issue of human capacity building with regard to formulating regulations, carrying out inspections and mine project assessments will be addressed in line with the development strategy for the mining sector for the period 2010-2015.
The development of the mining sector should relate to poverty alleviation through job creation and the development of affected communities in mining areas, Mr Soulivong added.
Ambassador of the Federal Republic of Germany to Laos, Mr Robert von Rimscha, pointed out that in recent years, the minerals sector in Laos has experienced significant growth and that the mining industry has the potential to play an important role in the country's economic development.
However, naturally extensive mining also brings about a number of social and environmental risks that can already be observed in Laos; for example, mined out areas without rehabilitation, land degradation, increased pressure on water resources, pressure on social cohesion in affected communities and pollution issues.
Mr von Rimscha said that an effective and efficient government system for the mining sector is crucial for the reduction of risks to the affected population, environment and property, and for the increase of economic and social benefits from mining.
The Sustainable De-velopment of the Mining Sector project got underway in November 2011. After the set-up of a project office, visits to five pilot provinces and contacts with stakeholders in the mining sector, the project conducted a planning workshop last month.
According to the Department of Mines, so far about 184 companies have received licenses for the exploration and exploitation of potash, bauxite, gold, copper, lignite iron, tin and zinc.
Head of the Unit for International Cooperation, Asia, Dr Arne Hoffmann-Rothe, said the Federal I nstitute for Geosciences and Natural Resources is the central geoscientific authority providing advice to the German Federal Government in all geo-relevant questions .
The institute is subordinate to the Federal Ministry of Economics and Technology and has been operating internationally since 1958.
The institute advises the Federal Ministry for Economic Cooperation and Development and is currently implementing projects for the management of geo-resources in about 30 partner countries worldwide.
