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Laos – Invest in Mining

Article · May 2011

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 Laos
Invest in mining
Contents:
Country overview
geology and Mineral occurrences
Company profiles
mineral policy and licence procedure
Laos

Country overview o o o o N
102 E 104 E 106 E 108 E

Laos, officially the Lao People’s Demo- China

cratic Republic (Lao PDR), is located in
Southeast Asia, in the center of the Me- 22o N 22o N
kong River region. The country is land- Vietnam
locked; it is bordered by Myanmar and
Myanmar
People’s Republic of China to the north-

“Peace, Independence, Democracy, Unity and Prosperity”

west, Vietnam to the east, Cambodia to the
south and Thailand to the west. Laos has a
population of 6-7 million and a land area 20o N 20o N
of 236,800 km2. It has significant natural Gulf
resources like minerals and hydro-electric of
power, timber, rubber and agricultural Tonkin
land. It is also a rising power in exporting
electricity into the neighboring countries. 18o N 18o N
such as Thailand, China and Vietnam and Vientiane
The Lao economy is accelerating rapid-
ly due to the demands of its metals. The
motto of Laos is “Peace, Independence,
Democracy, Unity and Prosperity”. Thailand
16o N
Laos is characterized by steep terrain and
narrow river valleys. The topography
is largely mountainous in the northern
part of the country with elevations typi-
cally ranging several hundreds of meters
14o N
excluding the plain of Vientiane and the Cambodia
Plain of Jars in Xiangkhoang Province. o o
104 E 106 E 0 50 100 150 200
The country has a tropical monsoon cli- km

mate. Rainy season begins in May and

continues to October, a dry and cool sea- Map of the Laos. Inset shows the location of the Laos in the southeastern Asia.
son is from November through February,
and a hot dry season prevailing in March
and April. Temperatures range from highs Laos has rich cultural history which dates Laos has also been dragged into several
around 40 °C along the Mekong river val- back to hundreds of years. The most fa- civil wars and after a period of violence
ley in March and April to lows of 5 °C mous dynasty ruled in the country was the it gained full independence in 1953. This
or less in the highlands. The country’s Lang Xang kingdom from the 14th centu- was followed by civil war and political
average humidity varies between 87 % in ry. In the relatively modern part of its his- disruption leading to the establishment of
rainy season and 69 % in hot dry season. tory the country was a colony of France the Lao People’s Revolutionary Party as
obtaining partial independence in 1949. the sole legal political party and declara-
tion of the People’s Democratic Republic
in 1975.

Laos in a nuttshell

Area 236,800 km2

Population 6.3 million (Mid 2009)
Population growth rate 1.8 % (2009)
Currency Kip (LAK); 1 US$ = 8000 Kip (June 2011)
Inflation 8 % (Aug 2010)
Main exports Copper, gold, electricity, timber, garments
GDP / Per capita 6.3 US$ billions / US$ 984 (2010 estimate)
Economic growth 8.5 % (2010 estimate)
Laos

Today Lao PDR is still rela-

tively poor (Per capita GDP
was US$ 984 in 2010) but rap-
idly developing country and
a number of reforms towards
market–oriented economy have
taken place. The government
goal is to graduate the country
from the UN list of least-devel-
oped counties by 2020.

In spite of the liberalizing re-

forms, the Lao People’s Revo-
lutionary Party has maintained
its role as the only political par-
ty. The country is administrated
according to the rules of the
constitution. There is a presi-
dent in the highest position of
administrative power elected
by the National Assembly for a
period of five years. The coun-
try is divided into sixteen prov-
inces which are further divided
into districts. The capital city of
the Lao PDR is Vientiane with
estimated population exceed-
ing 700,000.

The minerals and energy sec-

tors have been strong econom-
ic drivers of Lao PDR econ-
omy during the last decade.
The share of minerals exports
account for over 50 % of the
national total revenues (energy
10 %) while combined royal-
ties, taxes and other fees from
the two sectors account for
20-25 % of all public revenues.
The importance of the mining
sector in GNP in Lao PDR has
grown from 2 % at 2002 and is
expected to be 15 % in 2010
and reach up 20 % in 2020 Geological map of the Laos showing major geological units and fold belts of the country.
(VI National Five Years Plan).

Geology and mineral occur- for additional discoveries has taken place operations of cassiterite (silver) along
during one decade due to two large-scale Nam Pathere River from 1920’s till
rences of the Lao PDR mining operation: MMG’s Sepon and present. Recent development with proven
PBM’s Phu Kham copper-gold mines. mineral potential of the poorly explored
Geologically the Lao PDR appears to be
Even though the large-scale mining has country, combined with rises of commod-
the least known of the Southeast Asian
only a short history in the Lao PDR, the ity prices has attracted a number of foreign
countries stratigraphy resembling the
mineral potential of the country has been and domestic mining companies to
neighbouring countries.
known a long time dating back to ancient become active and now more than 150
The development of Lao PDR as a mining
artisanal gold mining and excavation exploration licenses have been granted.
country with good geological potential
Laos

Based either on known discoveries or at the northern extension of the Truong- Aluminium
geological analogy the most abundant son belt. The deposits and occurrences
mineral resources expected to be found are divided into skarn type and Mississipi Bauxite is the dominant aluminium ore
in the Lao PDR are gold, copper, zinc, valley type (MVT). At present, the only found in Lao PDR. It is mostly concen-
lead, tin, aluminium, iron, platinum group zinc deposit developed in the Lao PDR is trated in the southern part of the country
metals, nickel, chromium, rare earth the Kaiso deposit in Vientiane province. in the Khorat plateaus (Champassack, Se-
elements, high-tech metals and coal. This deposit has been estimated to contain kong and Attapeu provinces). The bauxite
Mineral industry is significant source 23,000 tons that grade 46 wt-% Zn using ore deposits have two types. The other
of foreign currency earning and thus a a cut-off grade of 20 wt-% Zn. At Kaiso, occurring is a bauxite pebbles or frag-
factor of the development of the coun- zinc ore has been mined and exported ments concentrated in the lower part of
try. More than 570 sites have been found to Thailand for smelting and refining. Cretaceous sandstone beds (Latsaluay
to have economic minerals but only ca. Formation). The more significant ore type
50 sites have been further investigated Pha Luang is another zinc-lead-silver is the residual lateritic bauxite deposits
in more detail in order to determine the occurrence in Vientiane province, and it formed weathered basaltic lavas. Inferred
current mineral concentrations. So far is believed to have potential to become bauxite resources total approximately
there has been very little exploration a large new zinc-lead district. Miner- 700 million tons and measured reserves
work done in the country in spite of the alization in the Pha Luang is widespread 125 million tons.
fact that Lao PDR is composed of with zinc oxides and lead sulphides out-
geological settings that are favour- cropping in various places along a strike
able to mineralization; all the three length of over 10 km and displaying Iron
fold belts and the Khorat plateau are characteristics of MVT. The high-grade
linked to proven mineral potential. lead and zinc ore was discovered by Lao PDR has significant iron ore depos-
exploration drilling with Pb and Zn its in the Xienghouang province, NW of
grades varying from 8 to 26 %. Vientiane. The ores in the Phou Nhouan
Gold and copper and Pha Lek are the most famous de-
posits that have been known for a long
Gold and copper deposits and occurrences Tin time. Both are skarn style deposits along
in Lao PDR are widely distributed in three contact zones between Paleozoic carbon-
fold belts. However, the junction between Tin deposits and occurrences are mostly ate sediments and acid to intermediate
the Loei belt and Truongson belt hosts a distributed into the Truongson belt. These intrusives of unknown age. The Phou
number of deposits. The mineralization deposits are related to Late Paleozoic gra- Nhouan is composed of magnetite and
style in the Loei belt is comparable to the nitic rock bodies where cassiterite-bearing hematite (both >35 vol-%) and limonite
subduction zone system. quartz veins, quartz networks and skarns (>35 vol-%). The estimated Phou
exist. Tin ore reserves amount to 45 million Nhouan are 26 million tonnes of ore. The
Majority of copper and gold occurrences tons at present, but are likely to increase Fe-contents of the ore varies from 25 to
in both Truongson and Loei belts are por- with exploration activity. Tin deposits and 70 wt-% (average = 47 wt-% Fe). The
phyry Cu-Au type stockworks and skarns. prospects are concentrated in Vientiane, mineralization in the Pha Lek deposit is
Currently there are two mines producing Xiengkhouang, Houaphan, Khammouane of Permian-Triassic age. This deposit
copper and gold in the Lao PDR. In the provinces and Champasak province in the is hosted by carboniferous shales where
Sepon Cu-Au mine, the mineralization is south. Tin exploration and exploitation the mineralization is contact metasomat-
associated to porphyritic intrusions with at Boneng-Phontiou mines (Hin Boun ic type. The major ore mineral is mag-
kilometer scale alteration zone showing District of the Khammouane Province) netite with average Fe content of 67 %.
indications of Carlin-type deposit for its have been undertaken since decades be- The estimated resources of the ore are
gold and skarn for its copper mineraliza- ing exclusively mined from superficial 30-40 millions tonnes.
tion. In the Phu Kham Cu-Au mine the deposits i.e. from alluvial and residual,
mineralization is a skarn and stockwork weathered material.
in volcanics above and around porphyritic Platinum group metals,
intrusion. Both deposits are related to near One potential and underexplored zone for
fracture zones along tectonic lines and are nickel and chromium
tin(-tungsten-antimony) deposits is locat-
thought to be formed by Late Paleozoic ed in the northern part of the Lao PDR,
granitic igneous activity. Along northwestern extension of the
in the NW border of the Sukhokthai belt. Nan-Uttradit suture line from Thai-
The zone is northern continuation of land to Lao PDR there occurs a chain
Chiang Mai-Chiang Rai Tin-tungsten belt of ultramafic bodies or intrusions that
Lead and zinc of the Thailand which goes across the could represent ophiolites or layered
Laos to China where the zone is know as intrusions. These rocks may be pro-
Most of the lead and zinc deposits and oc- Sanjiang belt. spective for platinum group metals
currences are distributed in the Loei belt (PGM), nickel, copper and chromium.
Laos

Detrital cromite has already been found

close to these rocks in Oudomxai prov-
ince, ca. 300 km NW from Vientiane.
Another area or a chain of ultramafic and
mafic bodies is located in the NW part
of country, in the Houaphan province
close to the Vietnam border. These bod-
ies may also represent ophiolitic rocks
and could therefore be potential targets
for locating PGM, Ni and Cr deposits.

Rare earth elements (REE)

and other high-tech metals

The demand of rare earth elements (REE)

and other high-tech metals has increased
significantly in the past years, and there
is growing concern that the world may
soon face a shortage of these elements.
The REES have wide use in lighter flints,
glass polishing, fluorescent lamps, ceram-
ics and glasses, lasers, magnets, batter-
ies, magnetic disks and high-temperature
superconductors. Other high-tech metals,
such as indium, germanium, scandium
and gallium are vital components in the
flat-screen displays, mobile phones and
solar panels.

Until 1950s, most of the world’s rare

earths were sourced from placer deposits,
but today there are two more important
sources of REES. A significant source is
igneous carbonate rocks where the major
REE bearing minerals are bastnasite,
calcite, dolomite and barite. Ion-absorp-
tion deposits make up another very im-
portant source of REES. These deposits
are formed by weathering of granite from
which REES are adsorbed to clay miner-
als formed by weathering. Iron-oxide-
copper-gold deposits (IOCG) and alka-
line rock are another potential source of
REES.

Today China is the most significant

producer of REE with annual production
of ca. 100 million tonnes of rare earth
oxides. Due to the tropical weathering
of the granitic rocks, Lao PDR has high
potential for placer-type ion-absorption
REE deposits
Laos

Coal muscovite schist and narrow skarn zones of the primary mineralization has given
where schist host moderate copper rise to a number of secondary ore types.
There are two types of coal occurrences grades (0.6 wt-% Cu) with low gold con-
in the Lao PDR, anthracite of Paleozoic to tents. Skarns generally displays high- The gold plant of the Sepon mine has been
Mesozoic age and lignite of Tertiary age. er ore grades. At the Phu Kam Mine, in operation since December 2002. In ear-
The coal seams vary in width from a few gold production started on processing ly 2005, an expansion of the original gold
centimetres to more than 20 metres. The the oxidized (weathered) gold cap us- processing facility was completed dou-
seams are interlayered with shales and ing the heap leach method in November bling the capacity of the gold processing
sandstones and have often been folded 2005 continuing until 2009. Process- plant, to 2.5 million tonnes per year.
and tectonized which makes them some- ing of the main Cu-Au ore underly-
what challenging to mine. ing the weathered cap commenced in
2008. Presently, the mine produces yearly
ca. 60 000 t Cu, 43 000 oz (1300 kg) Au,
Gypsum and potassium and 300 000 oz (9330 kg) Ag. According
to the latest estimation ( June 2010) the
Gypsum is mined in southern Laos and ore resources are 227 [email protected] wt-% Cu
exported to Vietnam after preliminary and 0.22 g/t Au, the mine life being 10
enrichment. There are ambitious plans years. Currently, the exploration is con-
to increase the annual potassium produc- tinuing to the immediate north and west
tion of Vientiane province from the of the mine.
present 50 000 tons to one million tons.

Minerals and Metals Group

Company profiles (MMG)

Phu Bia Mining Limited (PBM) Minerals and Metals Group (MMG) is
owned by Minmetals Resources Lim-
The Phu Bia Mining Limited (PBM) is a ited (MMR), which is listed on the
Laos-registered exploration and mining Hongkong Stock Exchange. MMG is one
company established in 1994, and of the world’s largest producers of zinc as
currently 90 % owned by PanAust Ltd. well as a substantial producer of copper,
The PBM holds a 2636 km2 Mineral lead, gold and silver. In addition to the
Exploration and Production Area (MEPA) Sepon mine in Lao PDR, the company has
in Lao PDR with a 30-year tenure refreshed four mines in Australia and worldwide
with each new mine development. exploration projects. The Sepon project,
The company employs directly nearly which includes the mine comprises a 1247
2000 people. km2 Mineral Exploration and Production
Area (MEPA). The Lao PDR holds a
The PBM has located 13 major anoma- 10 % interest in the Sepon project with
lies of which two deposits, Phu Kham MMG owning the rest 90 %. The Se-
and Ban Houayxai (in the northern part pon mine and mineral district is situated
of the Vientiane province, about 120 km 40 km north of the town of Sepon, in
NNE from the Vientiane), have lead into Savannakhet province, south-central
development. The deposits were discov- Laos. The Sepon project is employing
ered during the early 1990’s by a regional about 3000 people including contractors.
stream and soil sampling, followed-up by
diamond drilling. The Sepon mineral district stratigraphy
comprises Devonian to Carboniferous
The Phu Kham deposit is interpreted to continental fluvial and shallow-to-deep
be of Permo-Carboniferous to potentially marine sediments, which probably were
late Jurassic in age. It is a “porphyry style“ deposited in a half-graben basin. The
deposit with associated skarn mineraliza- copper mineralization covers a variety of
tion and zone of alteration. The alteration primary and secondary styles. Along the
and mineralization covers 2 km long and contacts of the intrusive stocks, copper
500 m wide zone in SE-NW direction. skarns are developed, while outbound of
The deposit has been subjected to several the skarn front, lower temperature silica-
phases of folding and faulting, includ- sulphide replacement of carbonate rocks
ing thrusting. The ore body is hosted by is common. Weathering and mobilisation
Laos

The copper operation commenced produc- in the frontline in the poorly explored At the moment, 104 (of which 32 metallic
tion in 2005. The copper ore is processed country have attracted foreign and do- minerals) exploitation, 114 (65 metallic)
by whole-of-ore leach where copper rich mestic companies to acquire prospecting exploration and 88 (81 metallic) pros-
extracted solvent is treated electrolytically and exploration licenses in the Lao PDR. pecting licenses have been granted for
(electrowinning) to produce copper cath- further studies. As part of these new de-
odes. The gold ore is processed by con- velopments, also the Lao government has
ventional carbon-in-leach method. The reserved specific areas for extraction of
copper production is planned to increase specific minerals or for needs of tourism.
into 80 000 ton per year in 2011 from the
present 67 500 ton, the annual gold pro-
duction being 90 000 ounces (2800 kg).
The ore reserves of the Sepon mine are
13.5 [email protected]% Cu (688,500 tonnes Cu)
and 9 [email protected]/t Au (0.9 Mozs Au).
(Recources 1.6 million tonnes copper,
14.5 million ounces silver, 3.2 million
ounces gold).

Lao Mineral Policy and

Mineral Law
General

The Lao vision for mineral development

include sustainable development of the
mineral industry through effective use of
mineral resources and protection of the
environment, the society as well as the
biodiversity, aiming at generating nation-
al income, creating the base of national
industrialization and modernization, thus
contributing to the eradication of poverty
of people and release Lao PDR of the list
of least developed countries by 2020.

The new Minerals Law, complemented by

the Prime Minister’s Degree on the imple-
mentation, has been passed the National
Assemble in March 2009. According to
the law, all minerals and mineral rights are
owned and regulated by the state through
the national mineral policy, following the
national socio-economic development
plan of energy and mining sectors. The
Ministry of Energy and Mine (MEM) and
it’s Department of Mines (DOM) in par-
ticular is the coordinating center for all is-
sues related to the mining industry.

The state of Lao PDR encourages individ-

uals persons and legal entities, whether
domestic and foreign, to invest into min-
eral activity. Proven geological potential
with two major copper-gold producers,
PBM Phu Kham and MMG Sepon mines
Laos

Concession areas and mining activity

02

Concession types
03 Exploitation
Exploration
04
05 07
Prospection
06

"
09

,
%
08
10 _
^
11
!
.
!
.01
+
$
12

Mining activity
_
^
_
^ MMG Sepon copper-gold mine
13
_
^ PBM Phu Kham copper-gold mine
#
*
" Hongsa power plant project (lignite)
!
( SARCO aluminium project (bauxite) 14

Ü
15
#
* Gymsum mine
,
% Kaiso zinc mine

!
. Potassium mine
!
(
16 17
+
$ Tin mine (alluvial)

0 25 50 100 150
Km

License types
According to the Minerals Law the following permits, licenses and certifications
are needed for different stages of exploration and mining operations:

1. Prospecting license/agreement
2. Exploration license
3. Permit to undertake feasibility study
4. Mining license
5. License for processing and sale - purchase of the concentrate
6. Transportation of concentrate
7. Certification for rehabilitation
8. Mine closure Certification
9. Hand over/transfer the mining operation

Additionally, a reconnaissance permit can be applied for preliminary field check-

ing and sampling if needed prior to the application of the prospecting license.
The preliminary information about the available survey areas can be obtained
form the Department of Geology (DGEO).
Laos

Types of Minerals rights

License Reconnais- Prospecting Exploration Feasibility study Mining
type sance permit
Purpose Desk study Preliminary Geological and Technical and Extraction of
and site visit. survey to geophysical economical minerals using
Limited determine work to locate evaluation of the the modern
surface geological and delineate a mineral reserves, methods and
sampling conditions of the mineral deposit; extraction minimizing the
allowed. license area to including processes and impacts to the
identify feasible trenching, methodologies environment and
areas for pitting, drilling, applicable to the society.
exploration. tunneling planned mining
sampling, operation,
assaying and including the
data processing. impact on society
and environment.
Area 500 km2 x 2 500 km2 x 2 Not defined Not defined
(maximum)
Duration 1 month 2+1 3 + 2, at renewal 1+1 20 + 5
(year) 25-50 % of the
area has to be
relinquished
Fees 1 US$/ha/y 2 US$/ha/y 3 US$/ha/y Royalties, taxies
etc.

Classification of commodities

According to the Minerals Law, exploitable commodities are classified into four
categories:

1. Metallic minerals: gold, silver, cooper, zinc, iron, lead, tin and others

2. Non-metallic minerals: diamond, sapphire, ruby, emerald, limestone, gravel,

sand, gypsum, construction soil, decorative stone, radioactive minerals and
others

3. Energy minerals: coal, crude oil, national gas and other minerals

4. Liquid minerals: underground water source in all forms such as the hot water
source, mineral water source and others.

Area granted for prospecting and exploration shall be a sole mineral in principle,
but if needed, the investor can submit a new complementary application. Investor
has no right to transfer or sell license in the prospecting period.
Laos

License procedures shares, license fee and technical service Benefits of mining to
fee. Additionally, the license holder shall
also contribute to various funds such as: the Lao economy
When applying different categories of
mineral rights (a concession area) the Environmental Protection Fund, Com-
enterprise or company has to proof its munity Development Fund, Human Re-
sources Development Fund, Sustainable Real GDP growth of the Lao PDR re-
financial status and technical capability mains to be strong and is projected at
to conduct the planned prospection and Development Fund and Project Manage-
ment Fund in accordance with the con- 8.5 % in 2010, rising from 7.5 % in 2009.
mineral exploration activities in profes- The total export value of Lao PDR is
sional manner. If all conditions are met, cerned laws and regulations.
expected to increase to about US$2 bil-
the Mineral Exploration and Production lion in 2010 of which mining accounts
Agreement (MEPA) is signed between the The royalties for the metal production are
defined according to the net smelter return 57 %. The rapid increase in exports from
company and the government. This docu- US$ 500 million in 2004 to present
ment defines the approved survey area and prices. Royalty percentage for precious
stones such as diamonds is 10 %, 7-8 % US$ 2 billion has taken place only six
related prospecting and exploration plans. years thanks to the expanding mining and

Mining accounts 57 % of the total exports

It also defines the minimum exploration for precious metals and 6-7 % for base
metals, ferrous metals and Rare Earth energy sector operations. Labor wise the
expenditure, and confirms the environ- total direct and indirect employment of
mental management and socio-economic Metals.
the two major mining operations at PBM
development plans. The companies have Phu Kham and MMG Sepon mines is
to report frequently to the government the about 25 000 people.
progress to follow the MEPA.

The prospecting and exploration licenses

have the maximum area size of 500 km2.
Table 2: Main export share by commodity (% of total exports)
The number of licenses possessed by one
company is limited to two. The Pros- 2003 2004 2005 2006 2007 2008
pecting license is valid for two years but Gold 12.7 10.8 13.0 10.4 7.1 7.3
can be extended by additional one year. Copper 0.0 4.3 16.1 36.1 33.8 37.9
Exploration license is granted for three Electricity 24.3 21.9 17.9 10.8 8.6 7.2
years but can be extended by additional Timber 27.2 27.1 22.4 17.3 13.6 8.0
two years. When applying extension, Garments 27.5 28.9 16.5 13.3 11.6 11.6
25-50 % of the license area has to be Coffee 2.4 2.7 1.1 0.9 2.2 1.1
relinquished. Other 6.0 4.4 13.0 11.1 23.2 26.9
Based on the results of exploration phase,
a permit to carry out economical – techni-
cal feasibility study can be applied from
the Ministry of Energy and Mines. The
term of the feasibility study shall not ex-
ceed one year but may be extended by one
year based on the approval of the MEM.

If the feasibility study report is accepted

and the mining license is granted, the gov-
ernment has right to take up a 10 % share
of the mine and nominate a representative
into the director’s council of the com-
pany. The share payment may take place
as cash payment or in deduction from the
dividend payable to the Government by
investor. Mining license is valid for 20
years but can be extended by five years.

The obligations of the mining license

holder are to pay land rent, concession
fee, royalty, income tax, turnover tax,
personal income tax, dividend tax, export
and import duty, fee on the buying-sale of
Laos

Export by Sector (US$ million)

Mining
2 000
Exports (US$ million) Electricity
1 500
Wood & Wood
2 500
Products
1 000
Garments
2 000
500 Agriculture
US$ million

1 500 0 Others
2006 2007 2008 2009 2010e
1 000
Source: World Bank
500

0
84

86

88

90

92

94

96

98

00

02

04

06

08

e
10
19

19

19

19

19

19

19

19

20

20

20

20

20

20

Source: International Financial statistics and World Bank (for

2010 estimate)

Mineral production by weight and volume, 2001–08.

Source: World Bank 2010

Total mineral production of MMG Sepon and PBM Phu Kham

mines by weight and volume. Due to recent expansion of Sepon
production capacity, it’s copper output alone will rise in 2011 to
about 80,000 tons.
Laos

Existing Digital Data Sets

The existing digital data sets are collected into the LAOGDB hosted at the Department
of Geology. It has been divided into four parts: (1) Basedata, (2) Geodata, (3) Mining
Cadastre and (4) Digital Report Library.

The Basedata consists of the following datasets:

• Topographical maps (1:100 000 scale)

• Administrative borders
• Land use
• Digital elevation model
• Contours
• Rivers
• Lakes
• Roads (classified)
• Small objects (villages, schools etc)
• Protection areas
• Army areas
• Map sheet divisions

The Geodata includes the following geological maps:

• 1:1M scale geological map with structures

• 1:500 000 scale geological map with structures from Southern Laos
(9 map sheets)
• 1:200 000 scale geological maps with structures from Mid-Lao
(8 map sheets)
• 1:200 000 scale geological maps with structures from Northern Lao
(15 map sheets)
• 1:200 000 scale geological maps with structures from Vientiane sheet
• 1:100 000 scale geological maps with structures (28 map sheets)
• Soil map
• Mineral deposit database

The Mining Cadastre consists of the following areal

layers complemented with related attribute data tables:

• Reconnaissance permit
• Prospecting licenses
• Exploration licenses and
• Mining licenses

The Digital Report Library (DRL) was developed by compiling the existing digital
geological reports and scanning several hard-copy reports of which some were avail-
able at DGEO as one copy. These reports, representing the key publications on geol-
ogy of Lao PDR, total now 55 in number and were collected into one well-organized
database which consists of user-friendly summary table from where linking to each
individual report can be made.
Laos

Mining Cadastre future plans

The Lao Mining Cadastre consists of The main objectives are to improve the
four spatial dataset with related data ta- existing cadastral system to meet the
ble; Reconnaissance permits, Prospect- present day requirements by unifying
ing licenses, Exploration licenses and the coordinate systems of the cadastral
Mining licenses. Concession area data is database, instructing the applicant of the
stored in ArcGIS and MapInfo formats. mineral rights, and improve the coding Compiled:
Due do some inaccuracies at the spatial system by assigning the unique identifier
data World Bank is financing a new Ca- for each individual license or application. Tuomo Karinen; GTK
dastral Map Data Management System In order to solve the present problems, e-mail: [Link]@[Link]

Mining is fundamental driver of the Lao economy

project to synchronize the existing data new cadastral block system based on Esko Korkiakoski; GTK
and to develop a methodology to con- fixed cadastral units (CUs) will be devel- e-mail: [Link]@[Link]
trol the spatial concession area data more oped to replace the current system using Simone Phichith; DOM
systematically in the future. freely shaped concession areas. e-mail: dgmmcmd@[Link]
Khampha Phommakeysone; DGEO
e-mail: dgmnet@[Link]

Layout: Viena Arvola; GTK

Geological maps

Lao PDR has spent efforts on making

basic geological surveys and exploration,
so that it now has a good understanding
of the geological conditions in the coun-
try. Geological mapping have been per-
formed in scales 1:1000 000, 1:500 000,
1:200 000 and 1:100 000.
Laos

Mining at glance

Lao PDR has demonstrated a proven potential Contact information of relevant public administration
and agencies
to host significant porphyry type copper-gold
deposits as shown by exploitation of major MINISTRY OF ENERGY AND MINES (MEM)

PBM Phu Kham and MMG Sepon mines. The

development of extensive weathered bauxite
deposits in the lateritic soils on the Cenozoic Department of Mines (DOM)
basaltic Bolaven Plateau in the southern prov-
Simone Phichith, Director General
ince of Champassak are at the final phase of Eravanh Boungnaphalom,
feasibility study and construction contract of Deputy Director General
Khamtanh Vongphansipasuth,
US$ 600 million for the aluminum refinery has Deputy Director General
been signed. The Hongsa Lignite Power Plant
Nongboonh Rd.
in Sayaboury province with the generation Vientiane Capital, Lao PDR
capacity of 1,878 megawatts will start opera- P.O. Box: 4708
e-mail: dgmmcmd@[Link]
tion in 2015, following the approval of loans of
US$ 2.7 billion. Also potash mining north of Department of Geology (DGEO)

Vientiane has extensive extension plans to in- Chansone Senebouttalath,

crease the plant capacity from the present Director General
Khampha Phommakeysone,
50 000 ton/year to annual level of one million Deputy Director General
ton. Chansavath Boupha,
Deputy Director General

Zinc-lead and specially alluvial silver mining Khounboulom Rd.

Vientiane Capital, Lao PDR
has a long history in the Lao PDR. There is also e-mail: dgmnet@[Link]
potential for the discovery of platinum group [Link]

elements, nickel and chromium ores at the ul- Prime Minister’s Office
tramafic bodies representing ophiolite succes- National Geographic Department (NGD)
Nahaidioa Road 01003
sion at the NE-part of the country. Lao PDR P.O. Box 2159
has also geological potential to posses rare earth Vientiane, Lao PDR

elements (REE) and other high-tech metal de- Prime Minister’s Office
posits the possible source being the extensive Water Resources and Environmental Administration
(WREA)
granitic intrusive bodies through weathering P.O. Box 7864
processes. Vientiane, Lao PDR

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