China , Vietnam develop mineral processing in Huaphan
 
Vientiane Times, 03 Dec 2009
 
Two mineral processors from China and Vietnam have made progress in
their proposal to build two ore processing factories and other
construction projects in Huaphan province with a view to exports.
 
The two investors have submitted their project proposals to the
province; the Vietnamese investor has since received a licence, while
the Chinese proposal remains under consideration.
 
“The Chinese proposal was submitted five months ago and will be
approved soon,” said provincial Planning and Investment Department
Deputy Director, Mr Bounkham Hounglakhone.
 
He said the Chinese investor expects to spend about 253.5 billion kip
(US$30 million) on the plant.
 
The investor expects to start plant construction soon, to be completed
by 2015 in Viengxay district.
 
It will provide services for different ore processing for mine
investors. It also plans to buy ores from excavators or mining
investors in provinces to process and export.
 
Currently an iron ore project in Huaphan is being mined by an India
company, “however the ore is exported as raw material, not processed,”
he said.
 
The Vietnamese investor will spend about 42.3 billion kip (US$5
million) and begin construction soon. It expects to be complete for
operation by 2013.
 
“Currently the plant is under design and an appropriate site is being
sought,” Mr Bounkham said.
 
“The two investors hope to operate their projects for 50 years.”
 
Investments in Huaphan are growing in both state and private sectors.
In the fiscal year 2007-08, the province had investment revenue of
more than US$14 million.
 
“The figures indicate a six to seven percent increase each year,” he
said.
 
The private sectors include locals and foreigners mainly investing in
power, mining and agriculture. The local ones mostly invest in
agriculture and power while the foreigners focus on power and mining.
 
For the mining projects, the investors have conducted a study and
begun work at 11 sites, mostly in Xamneua and Xamtay districts. The
province has different ores such as iron, lead and gold.
 
“The investment cost may go up even higher in 2009-10 because there
will be many power projects,” he said.
 
The province has the potential for eight power projects. Currently,
investors are studying four sites mainly in Xamtay district.
 
Mr Bounkham said, based on an initial study result, each site will
have an installed capacity from about 100MW to 400MW. The projects are
aimed at generating energy for local areas and export energy for
Vietnam .
 
Vietnamese private and state sectors had studied the power potential
recently and expressed interest in buying energy from the province.
 
In the last few months a company from the Republic of Korea signed a
memorandum of understanding with the Ministry of Planning and
Investment to conduct further study and design for the Nam Neun
hydropower project in Huaphan.
 
The project will have an installed capacity of about 200MW in
Huameuang district. It is expected to cost about 3.5 trillion kip (US
$400 million) with the Lao government having about 25 percent of the
shares.