Last week, Mr Saman Aneka, LXML Managing Director, and Executive Vice President of the Advisory Council of the Lao National Chamber of Commerce and Industry, joined the Public-Private Forum chaired by His Excellency Phankham Viphavanh, Prime Minister of the Lao PDR.

The purpose of the two-day meeting, attended by Deputy Prime Ministers, Ministers, business leaders, and representatives of Party and State bodies, was to enhance public-private collaboration to overcome economic challenges facing the country from the COVID-19 crisis and recovery.

“The public and private sectors cannot act independently,” said Prime Minister Phankham Viphavanh. “They must cooperate as partners to jointly develop Lao PDR and alleviate poverty.”[1]

Participants discussed improvement of the ‘one-stop’ service for investors, commercial agricultural production, strengthening the processing industry for the domestic and export market, promotion of the service sector, allocation of land along the Lao-China railway for agricultural development, industry and services, skills development, and job creation.

From the LNCCI Advisory Council and LXML’s perspective (Lao PDR’s largest mining company), Mr Saman Aneka, who has 30 years of experience in the international mining sector, proposed recommendations to promote responsible mining investment. Taking into account the evolving global economic climate, he reinforced that mining operations in Lao PDR must stringently follow regulations. Any shortcuts in assessing and monitoring projects may encourage inexperienced investors, resulting in financial losses and other possible impact. The Government would also not receive revenue from any failed operations, with potential consequences for environmental rehabilitation and mine closure. Responsible investors are required to comply with international environmental and social standards for the benefit of society and to stimulate economic recovery following the COVID-19 crisis.

“Lao PDR needs a strong transparent investment and regulatory framework to attract and retain quality and responsible investors in mining and other sectors,” said Saman Aneka. “This will help to create employment, revenue, and other benefits to support the Lao Government and communities in addressing COVID-19 recovery and alleviating social hardship through sustainable development.”

Since the onset of the COVID-19 pandemic, LXML provided approximately US$500,000 to the Lao Government to support emergency response efforts in Lao PDR. 99% of LXML’s 5000 employees and contractors are vaccinated against COVID-19 and maintain strict prevention measures.

Since operations commenced in 2002, LXML has contributed over US$1.6 billion dollars in direct revenue to the Lao Government through taxes, royalties and dividends, US$50 million in infrastructure development and cultural heritage preservation, US$52 million in UXO clearance, and hundreds of millions of dollars of indirect benefits through employment, training, community development, and other support programs.

More than 40,000 community members in Vilabouly District, where Sepon mine is located, have benefitted from approximately US$20 million in community development programs. Community income through local business groups has accumulated to US$46 million.

LXML is committed to mining excellence in cooperation with the Lao Government to ensure the continuing success of Sepon Operation for the benefit of all stakeholders.

[1] Vientiane Times, 20 December 2021, Public, private sectors need to work together to overcome challenges, PM