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Govt: Resource-based exports must be processed
A local gypsum processor, Khounxay Construction Limited, signed a share investment agreement with the Ministry of Finance on Thursday to excavate and process gypsum.
The ceremony was witnessed by Standing Deputy Prime Minister Somsavat Lengsavad and ministers from the Prime Minister's Office and finance ministry.
The gypsum excavation and processing project will take place on a 260 hectare concession in Savannakhet province, for local supply and export.
Mr Somsavat said the gypsum must be processed into specific products, otherwise the government won't allow it to be exported.
“The agreement will be cancelled if the producer exports gypsum in its raw form.”
The government plans to have processed lime to add value to the products, which will be sold both locally and overseas.
“We also want to ensure local supply, mainly for cement production,” Mr Somsavat said.
Khounxay Construction Limited President Mr Khenkham Silaxa said the project had an initial registration investment capital of 80.3 billion kip (US$10 million), in which the finance ministry holds a 30 percent share and the rest belongs to Khounxay.
“The investment capital may be increased if the business gets larger,” he added.
Some of the gypsum will be half processed into lime powder, while fully processed products will be used as construction materials. Other potential uses include agriculture and food products for humans, animals and the health sector.
Mr Khenkham said the concession will not have a limited time but will last until the project runs into problems such as a loss of profit or capital or the business ceases to operate smoothly.
vientiane times
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