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Case study sees mining as powerhouse of Lao economy
The mining sector is playing a major role in driving the Lao economy, according to the International Council on Mining and Metals.
The council released a case study titled “Utilising mining and mineral resources to foster the sustainable development of the Lao PDR” last week, aiming to provide a systematic approach to measuring mining's positive and negative economic and social contribution.
According to the study, which is made possible with close cooperation from the Lao Ministry of Energy and Mines and Ministry of Planning and Investment, the mining sector has come to represent 80 percent of foreign direct investment (FDI) in Laos.
The mining industry also is a significant contributor to the economy, providing 45 percent of total exports, 12 percent of government revenues and 10 percent of national income. These benefits have been complemented at the local level by stimulating markets and enhancing incomes.
There are two major miners in the country. MMG Lane Xang Minerals Ltd operates a gold and copper project in Vilaboury district, Savannakhet province, and Phu Bia mining operates a gold and copper project in Vientiane province.
These two companies create jobs for local communities both directly and indirectly. At present about 30,000 people rely on the two miners, representing 1 percent of the total workforce and five percent of the workforce in non-agriculture activities.
The study also shows that the impact of the two projects has been considerable. In just nine years, average incomes at the Sepon mine have increased seven-fold while at PBM's Phu Kham copper-gold operation total village incomes have increased five-fold.
The result of these increases in wealth is seen in the changes in people's personal goals during this period: from food security, improved housing, possession of a rice mill and a tractor to motorbikes, mobile phones, refrigerators, water pumps, bank accounts and cars.
The International Council on Mining and Metals (ICMM) was established in 2001 to improve sustainable development performance in the mining and metals industry. Today, it brings together 21 mining and metals companies as well as 31 national and regional mining associations and global commodity associations.
The council emerged out of a multi-stakeholder research initiative the Mining, Minerals and Sustainable Development project, which examined the role of mining in a sustainable future. Its findings recognised the industry's potential contribution, identified core challenges and set out an agenda for change that would form the backbone of ICMM's mandate.
The ICMM now serves as an agent for change and continual improvement on issues relating to mining and sustainable development. Member companies have made a public commitment to improve their sustainability performance and are required to report on their progress on an annual basis.
vientiane times
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