LAOS - WHERE WE WORK
The Lao People's Democratic Republic (Lao PDR) is bordered by Burma and China to the northwest, Vietnam to the east, Cambodia to the south, and Thailand to the west.
Laos is ideally situated to market minerals to the rapidly developing economies the surrounding countries.
ANNAMITE IN LAOS
We focus on Laos because it has world-class ore deposits, but it is one of Asia’s least explored countries.
Approximately 70% of the country is occupied by geologically prospective rocks with a demonstrated endowment of world-class copper and gold deposits.
Our team has a proven discovery history in Laos and elsewhere, a deep knowledge of the local operating environment, and a large proprietary dataset.
This allows us an unmatched ability to identify the best projects and work effectively with local partners and the regulatory regime.
Other exploration, development or operations activities that have been completed in Laos include exploration of the Truong Son and Loei folder belts in the 1990’s by CRA, Newmont and Normandy Anglo Asia.
Exploring the southern Truong Son Belt, CRA discovered the Sepon mineral district (total endowment 4.8Moz Au, 1.6Mt Cu), which includes Cu-Au skarn and carbonate replacement deposits, and Au-Ag Carlin-like deposits. CRA became Rio Tinto, then sold the Sepon asset to Oxiana around the turn of the century. Oxiana and its successor companies OZ Minerals and MMG developed and open-cut mined the oxide gold parts of the Carlin-like gold deposits and mined the oxide copper skarn and carbonate-replacement deposits. In 2018, Chifeng Jilong purchased the Sepon asset, continued open-cut mining of oxide copper and commenced underground mining of the primary zone of the Carlin-like gold.
Newmont explored the northwestern Truong Son and Loei belts, discovered several smaller intrusive-related and epithermal gold deposits, but withdrew after about five years with no development projects or operations.
Normandy Anglo Asia explored the northern Truong Son Belt and discovered the Phu Kham skarn-high sulfidation copper-gold and the Ban Houayxai low-sulfidation gold-silver deposits (total endowment 5.3Moz Au, 2.4Mt Cu and 45Moz Ag). The deposits were later developed and open-cut mined by Pan Australian Mining, later purchased by Guangdong Rising. Both Phu Kham and Ban Houayxai are now entering the underground mining phase.
In Thailand, the discovery by Kingsgate of the Chatree low-sulfidation Au-Ag deposit in the western Loei Belt has led to a successful mining operation (endowment 4Moz Au, 32Moz Ag).
Existing mining leases in Laos that contain deposits of the size Annamite
- Ban Houayxai: two main deposits, 38 sq.km;
- Phu Kham: one main deposit and two satellites, 48 sq.km;
- Sepon Mines: several deposits, 99 sq.km.
INTRODUCTION TO LAOS
Laos has evolved from a communist state system toward a more market-oriented economy. This shift is exemplified by the development of major mining projects like Sepon, Phu Kham, and Ban Houayxai, which were led by Australian companies and have proven the government’s openness to foreign investment in the mining sector. However, with these mines nearing the end of their reserves, the government is now focusing on supporting new mining ventures.
Laos’ complex political history, especially its centrally planned economy between 1975 and 1982, shielded the country from rapid exploration advancements. As a result, Laos remains one of the least explored countries in Asia, despite having some of the most promising geological formations. This historical context creates a unique exploration opportunity for companies in the mining industry.
In the past two decades, Laos has seen the development of three world-class mineral deposits (Sepon, Phu Kham, Ban Houayxai). Additionally, the country is part of the Loei fold belt, home to the 5Moz Chatree gold deposit. Despite this mineral wealth, Laos remains largely unexplored, making it an attractive investment opportunity for mining companies.
Recent amendments to Laos’ mining law have addressed some regulatory uncertainties, but with implementing regulations still under development, the government has placed a moratorium on the issuance of new exploration licenses. As a result, focus has shifted toward existing exploration tenements, many of which have stalled due to limited funds or insufficient access to exploration expertise.
- Lao PDR is one of the fastest growing economies in East Asia and the Pacific. It has improved access to electricity, schools, and roads, and has become an important energy exporter.
- GDP growth averaged 7.7% over the last decade, with income per capita reaching $2,577 in 2018. Economic growth is expected to remain robust in 2018, at 6.5%, with growth expected to pick up in 2019-2020.
- The business climate is improving: companies now see growing opportunities from closer regional integration and reforms to improve the business environment. This has resulted in a steep decrease in political risk in Laos.
- The hydropower sector displays good success stories, as well as the few modern mines that are out there. Government needs now new revenues from mining as existing cash generating mines will downscale or close within the next three years.
- In the Doing Business 2019 Report, Laos ranks better or similar to other jurisdictions compared to metals-rich countries in Africa and Asia.
- In contrast, despite higher metal prices, the performance of the mining sector remains poorly developed. It boils down to conducting proper exploration and developing modern efficient mines.
- Laos is now positioned for a new wave of mineral discovery and development. The first movers on this wave will have the best opportunity to capitalise on the wealth that will be created.
Laos has improved its risk profile by 20% over the last four years according to the Mining Journal 2020 annual world risk assessment report, by far the largest increase globally in that period. From a risk perspective Laos now falls right in the middle of world mining jurisdictions and is the least risky country in SE Asia.
Extract from the Executive Summary of the Mining Journal report below:
The biggest improvers over a four year-period were Laos and Greenland, which put almost 20 and eight points respectively.
The Investment Risk Index (IRI) provides jurisdiction-by-jurisdiction ratings across five core areas necessary to consider when assessing mining related risk : Legal, Governance, Social, Fiscaland Infrastructure.
Annamite Resources Holdings Pte. Ltd. (ARH) is a precious and base metals mineral exploration company established in June 2019, incorporated in Singapore (# 201915983C) with operations in Laos.
Our local Lao subsidiary Annamite Resources Laos Co., Ltd (# 01-00024196) was established in July 2020.
Annamite Resources is a member of
Singapore Mining Club
ANNAMITE RESOURCES 2024