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Lao-Chinese joint venture formed to develop mining industry
A Chinese investor has signed an agreement with the Lao Ministry of Natural Resources and Environment to establish a joint venture company to undertake geological surveying and mining services.
The agreement was inked on Saturday in Vientiane between the Guang Zhou Hui Da Feng Investment Company of China and the ministry's Geology and Minerals Department to establish the Lao Geological Survey and Mines Development Joint Company after over a year of preparation.
“It is just the beginning of our cooperation and we will face more challenges and hard work operating the business in the near future,” said Guang Zhou Hui Da Feng Investment Company CEO Mr Yao Weisi.
A department official said the joint venture is an investment of about 80 billion kip (US$10 million), which includes registration capacity or paid up capital of US$3 million.
The department holds a 49 percent share in the company and the remainder belongs to the Chinese investor. The agreement lasts for 20 years and “can be extended twice for ten years each time,” the official said.
The two parties will explore for minerals in three areas of Xayaboury and Savannakhet provinces across a total area of 601.1 square kilometres.
One survey will be for manganese ore deposits on 131.3 square kilometres in Botaen district and for copper ore on 321.8 square kilometres in Xayaboury district, both in Xayaboury province.
The other survey will be for manganese ore on an area of 148 square kilometres in Phin district of Savannakhet province.
The joint company will also provide services and facilitation for geological and mining studies, experiments, analysis, and exploration and mining of minerals or ores for other companies or investors that have received a license from the Lao government.
The Chinese company proposed the joint venture to Lao authorities in August last year and the government granted permission for the venture in August of this year.
The Chinese company has previously invited Lao delegations to undertake study tours of its mining projects in China.
vientiane times
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