Villagers voice concern over potash project

Vientiane Times, 27 Oct 2009

Residents of Huayteuy village in Xaythany district, Vientiane ,
yesterday expressed their disapproval of a potash excavation and
production project in their community over fears it will have negative
social and environmental impacts.

The discussions took place at a community meeting held in the village
temple on Monday to summarise development activities in the village.

The meeting was attended by Xaythany district Deputy Governor Xonglao
Yongnou, village leaders and district officials. More than 60
villagers attended the meeting to hear about village development
activities.

Villagers are concerned about the impacts the project will have on
their living conditions, the environment, watershed in the area, and
the health of residents and livestock.

The Lao government granted a licence to the Sinohydro Mining Company
in 2006 to undertake prospecting and exploration for potassium in the
district.

The initial project covers a total area of about 1.8 square kilometres
in the villages of Huayteuy and Huaydaenmeuang in Xaythany district.
The project is expected to run for 15 years.

Villagers raised concerns that waste from excavation and processing
will affect soil quality and damage watershed in the area, damaging
both the quantity and quality of farmers' yields. The project also has
possible air pollution issues.

Mr Xonglao cited a similar project in the Thongmang area of the
district, saying local people were affected by the project.

He called on village authorities to make sure local residents were not
taken advantage of.

According to the Sinohydro Company, construction of a potash
fertiliser processing plant is planned in Huayteuy village at the end
of this year. The plant will be built on a 30 hectare site, with
construction set for completion by the end of 2011.

The company will invest US$94 million in the project, including fixed
and working capital.

Production will begin as soon as the factory is ready, producing up to
120,000 tonnes of potash fertiliser annually.

More than 50 percent of total output will be exported to China , while
the balance is expected to be exported to other Southeast Asian
countries including Malaysia , Thailand and Vietnam .

The company will also supply products to the Lao market if there is
demand.

Potash fertiliser is the company's main product and is used in farming
to increase the nutrient value of soil.

The company will also produce other kinds of fertilisers and salt to
supply both local and overseas markets.

On August 27, the company held a meeting with local residents in
Nonsengchanh village in Xaythany district. Concerns were voiced by
residents over the potential negative impacts of the project on the
environment and local farmers.

The company assured the villagers it would do its best to reduce any
impacts using state of the art technology and would compensate any
residents affected by the project.

The company has said it will spend US$10.2 million of the total
project cost on mitigating any environmental impacts.