The revenue payable to the Lao government from the MMG LXML Sepon copper and gold mine is expected to be around US$205 million for 2011.
This figure includes a dividend payment of US$15 million, and will bring total government revenue generated since the mine opened to around US$800 million.
Copper production increased by 23 percent in 2011, reaching a record 78,859 tonnes, according to a report issued by the Minerals and Metals Group (MMG).
MMG is the parent company of Lane Xang Minerals Limited, which operates the Sepon mine.
The increase in copper production is the result of a major expansion of Sepon's copper processing facilities, completed in late 2010. The company expects to produce around 80,000 tonnes of copper cathode in 2012.
Last year the mine produced 74,484 ounces of gold, in line with the year's target. Production for 2012 is estimated to be 60,000-65,000 ounces, as the availability of oxide gold ore at Sepon is declining. Oxide gold ore will be exhausted in 2013.
MMG LXML Sepon Director Mr Saman Aneka said “Alongside producing gold and copper, we are also actively exploring for primary gold ore mineralisation so that we can extend the life of the gold mine.”
“If processing primary gold is feasible, it would mean that we would be able to generate even more revenue for Laos.”
