NA vice president praises mining project

The work of and Australian owned mining company has help the Lao government move closer to its goal of alleviating poverty, according to national assembly (NA) vice president, Dr Xaysomphone Phomvihane. Dr Xaysomphone made the comments about the Phu Bia mining company on Saturday, when he led on NA delegation to visit the company’s site in Xaysomboun district of Vientiane province. Phu Bia company director, Mr. Rob usher, briefed the delegation about the company’s operations with the assistance of technical staff. NA members were told the Company currently employed 1,700 staff members, of which 90% were Lao citizens. About 30% of the staff are local people and 30% are women. Dr Xaysomphone said creating jobs for Lao people helped them to earn more income and improve their livelihood, therefore helping to reduce poverty. He noted that residents who were not directly employed by the project also benefited because the company had built basic infrastructure such as schools, a dispensary, irrigation systems and roads. It has also established an electricity network and clean water facilities. Na members were told the company produces an average of 100kg of gold per month and 200,000 tones of copper per year. Total government revenue generated by the project, including concession charges, customs fees, profit taxes and salary taxes, has averaged US$ 50 million to US$76 million per year. The project also pays into a local development fund. It paid US$ 50,000 in 2005, US$100,000 in 2006 and US$200,000 in 2007. From 2008 onwards it will pay US$300,000 per year into this fund. The Lao government granted permission for the company to begin surveys of mineral deposits in the area in 1994 and the project began mining operations in 2005.