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Laos Mining Sector Attracts Over USD 2.4 Billion in 2024 Investments

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Laos’ mining industry attracted nearly USD 2.5 billion in investments in 2024, surpassing annual targets and showcasing the sector’s critical role in driving economic growth, according to the Department of Mines Management report.

On 20 January, Bounyong Sidavong, Director-General of the Department of Mines Management shared these updates during a meeting held in Vientiane from 20 to 21 January to assess the country’s vision to 2040 and Mineral Development Strategy 2030.

Nowadays, Laos has approved 244 companies to conduct mining exploration and processing activities across the country, covering 378 projects. Of these, 85 companies are actively engaged in mineral exploration and processing, while 58 companies are in the mine construction phase. 

Additionally, 76 companies are involved in pilot mining projects, with some transitioning to regular operations.

In 2024, total investments in mineral production reached over USD 2.47 billion, reflecting a 1.77 percent increase from 2023. Sales of minerals and mineral products, both domestically and abroad, saw even greater growth, with a total value of over USD 3.2 billion, a 13 percent increase compared to the previous year. These figures significantly exceeded the 2024 strategic targets set by the government.

Bounyong highlighted that the sector’s expansion is crucial for supporting Laos’ economic development goals while also ensuring that mining activities align with the country’s long-term strategic vision.

China Strengthens Role as Top Investor in Laos Mining Sector

Chinese enterprises continue to play a prominent role in Laos’ mining sector. As revealed during the Lao-China Business Forum in November 2024, China remains the largest trading partner and investor in Laos, contributing to over 900 projects worth more than USD 15 billion across various sectors, of which the mineral sector accounts for 18 projects.

One notable example of a Chinese company is the Asia-Potash International Company, which has become the largest potash fertilizer producer in Laos and Southeast Asia. In 2024, the company reported a production capacity of 1.8 million tons and aims to scale to 10 million tons per year in Laos, cementing its role as a major regional player in the potash industry.

To extend the collaboration, Laos’ Department of Geology and Minerals and China’s Henan Provincial Geological Department signed a Memorandum of Understanding on 23 December, 2024 for a joint geological and mineral mapping project spanning 1,454.73 square kilometers across three provinces such as Luang Prabang, Vientiane Province, and Xayaboury.

 

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