LXML Pays USD 5.84 Million Royalty for 1st Quarter 2022 to Lao Government

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Ministry of Finance (MOF), State Assets Management Department, Director General, Mr Phouthasin Heungthavong received a royalty payment for the first quarter of 2022 copper-gold production at LXML Sepon mine of USD 5,846,693.20 from Mr Saman Aneka, Managing Director of Lane Xang Minerals Limited.

Head of Natural Resource Management Division, Mr Vongpasith Silavong, Resource Management Unit, Ms Manilath Phetmanichan, LXML Deputy Director Mr Chanthone Naovalath, and LXML Supervisor Accounting, Ms Vilailuck Vongphit, were also present.

In 2021, LXML Sepon contributed USD 40.84 million to the Lao Government in direct revenue.

Since production commenced in 2003, LXML Sepon has contributed over USD 1.6 billion in direct revenue to the Lao Government, including over USD 389 million in royalties, in addition to hundreds of millions of dollars in indirect benefits through employment, training, local business support, and community development.

In the first quarter of 2022, Sepon mine produced 1,783 kilograms of gold and 2,426 tonnes of copper.

“LXML is proud to be a major financial partner in development in the Lao PDR through payment of royalties, profit tax, dividends, income and other taxes.” said Mr Aneka. “We would like to express sincere thanks to the Lao Government for its support to the continuing success of Sepon Project.”

Last month, LXML opened the first modern underground mining operation in Lao PDR. Underground mining is more economical for deeper ore deposits, with less environmental and social impact relative to open pit mining.  This new development will use modern equipment, and advanced mining techniques. Development will continue, with production expected in the second half of 2023.

After the handover, LXML representatives paid a courtesy call on the Minister of Finance, H.E Mr Bounchom Oubonpaserth, to discuss the future of Sepon Project’s contributions and development.