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Miner urges Laos to prepare for closure of Sepon project
The Australian mining company responsible for the Sepon Gold and Copper Mine in Savannakhet has begun discussing its closure despite it having a further 10 years in which to operate.
MMG Group Manager for Corporate Affairs Asia Mr Richard Taylor said on Tuesday the company has been in discussions with central and local authorities over plans to rehabilitate the project area once operations are shut down in 2020.
“We have taken a group of officials to Indonesia to learn how a mining project there was shut down,” he told Lao journalists and editors at a briefing in Vientiane on Tuesday.
Mr Taylor said it is necessary to discuss the issue now as some rehabilitation work will begin prior to the closure of the project.
The briefing was held to update media on the operations of the mining project and its contribution to the Lao economy.
According to a handout from MMG Lane Xang Minerals Limited, ore reserves in the project area are expected to be exhausted next year, bringing an end to the gold mine's life cycle.
Meanwhile, copper mining, which began in 2005, is expected to finish in 2020 due to the exhaustion of copper ore in the project area.
However, operations at both mines will be extended if the company discovers new ore reserves.
When asked about the possible negative impacts of the Sepon gold mine's closure next year, Mr Taylor said about 80 percent of the company's income is derived from the copper mine, so it will not be greatly affected financially.
He did not comment on how many workers would lose their jobs due to the closure, but said mining operations would be extended if the company discovers new gold ore reserves and the price of gold increases.
Mr Taylor said the price of gold on the international market will be a major factor in determining whether the miner decides to invest in extracting gold from deeper deposits.
The Sepon Gold and Copper Mine is one of the two largest mining projects in Laos. The mining sector has played an important role in boosting Laos' GDP growth over the past five years.
The National Assembly and a number of international organisations have urged the government to closely manage mining projects and use income from the resources sector appropriately to sustain economic growth.
World Bank Vice President and Chief Economist Dr Justin Yifu Lin urged Laos to manage its rich natural resources efficiently so they remain a blessing and not a curse.
vientiane times
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