Ministry of Energy has issued a notice suspending the operations of a foreign mining company in Oudomxay due to recurring safety issues.
The notice states that Lao-Xinlong Mining Company has had its operations in Pak Bang District suspended due to repeated accidents affecting lives and property.
The Ministry of Energy and Mines inspected the firm’s gold mining activities and warned the company that it must remedy safety concerns promptly, however, the company failed to make improvements.
Lao Xinlong Mining Company will be temporarily suspended from operations until the company’s safety systems have been upgraded and adjusted in accordance with the laws.
In the event that the company fails to comply with required improvements, the ministry says it will revoke the company’s mining license altogether.
Lao Xinlong Mining signed an agreement with the Ministry of Planning and Investment in February allowing it to conduct exploration for gold.
The Lao government has allowed foreign and domestic investors to undertake mining operations since 1990, with mineral resource deposits found at over 570 locations across the country.
The Ministry of Energy and Mines said in April that it was considering the approval of some 300 new projects, with natural resources a key export for Laos.