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Domestic miners set to begin dig for barite
Two domestic companies will begin excavating barite deposits in Meuangmeun district, Vientiane province, this month for export to Thailand.
The Phosy Mining Company will operate in Donhieng village and the Oravan Barite Company will excavate in the area of Nampaed village after both firms were granted licenses by the provincial Energy and Mines Department last month.
The quantity of barite ore in the two areas was estimated at about 6,000 tonnes in initial surveys.
Department Director Mr Khambong Khonsavanh told Vientiane Times on Sunday that the department will allow the two companies to export the unprocessed ore via the Ban Vang checkpoint in the district.
The mineral must be exported as a raw material because the province lacks a processing facility, although local authorities hope to see such a plant established in the area in the future.
The deposit of barite ore is scattered and only small so it is risky for investors to invest in the construction of a processing plant, according to Mr Khambong.
The department approved a proposal to build a barite processing facility in the area, but investors abandoned the plan after surveys established that the small size of the deposit made the investment financially unviable.
The price of barite depends on the type of deposit.
Mr Khambong said that black barite currently fetches about US$30 per tonne, with white barite a little more expensive. The mineral is mainly used in the petrol processing industry.
Vientiane is one of several Lao provinces where investors have expressed interest in establishing mining operations.
Over the past few years, provincial authorities have granted permission for many companies to carry out exploration and survey projects, but only a few have progressed onto excavation.
Mr Khambong said that current excavation projects include the Phu Bai mining project and the barite deposit.
Copper is the most sought after metal or mineral by domestic and foreign investors conducting explorations and surveys in the province.
The mining sector attracts the second most foreign investment, behind electricity, to the country. From 2000-2009 the value of investment in the mining sector was US$3.1 billion.
So far the government has granted investment licences to 154 companies running 269 projects in the mining sector.
Of these, 118 companies are foreign investors, who operate 186 projects between them. The rest are run by domestic enterprises.
vientiane times
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