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Villagers receive compensation from potash project
Sinohydro Mining Lao Company on Wednesday paid more than 4.6 billion kip in compensation to villagers in Xaythany district, Vientiane, after their land was appropriated for a potash excavation and processing project.
A ceremony to hand over the compensation took place at the Vientiane Energy and Mines Department and was attended by government officials and local authorities from villages affected by the project.
The total compensation paid by the company exceeded 4,659 million kip and more than 931.5 million kip was spent to lease the land, department official Mr Palisad said.
The people who are affected by the project are residents of Viengkeo, Houaytouy and Huaydaenmeuang villages.
The government granted a licence to Sinohydro in 2006 to begin prospecting for potassium, which the company discovered in the area of Huaydaenmeuang village.
According to department documents, the area slated for excavation is in Houaytouy, Huaydaenmeuang, and Viengkeo villages and totals about 11.96 km2. The processing plant is located in Dongbong village, Naxaithong district, about 20km from central Vientiane.
Total investment in the project is more than US$94.6 million.
Construction of the factory, scheduled to take 24 months, began in December last year. The completed plant will be able to process 120,000 tonnes of potash fertiliser annually for the export market.
Deputy General Manager Tong Hong Pin said the company has not encountered difficulties in the construction process and that the Lao government, local authorities and local residents all support the project.
“We comply with Lao laws and requirements,” he said.
The company will export 100 percent of its product to overseas markets, primarily China, with some being sold in Thailand.
It is the third fertiliser processing plant to be built in Laos, with the first two being located in the Thongmang area of Xaythany district and the Nongbok area in Borikhamxay province, according to the Ministry of Energy and Mines.
It is believed the project will increase export capacity and boost production in Laos.
The company has stated that it will use environmentally friendly technology in the excavation and production processes.
vientiane times
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