A USD 492 million potash mining and processing project in Khammouane is moving forward again after nearly a decade of delays, with production targeted for 2028.
On 12 October, Vietnam National Chemical Group (Vinachem) held a ceremony in Nongbok District to mark the project’s restart. The planned processing plant is designed to produce 500,000 tonnes of potassium chloride annually.
Vinachem says the project will help Laos add value to its mineral resources through local processing rather than exporting raw ore. It is also expected to strengthen fertilizer production and reduce exposure to volatile global prices.
The project stalled in 2017, when construction had reached 57 percent completion, following severe payment disputes between Vinachem and its contractors, according to VnExpress. Legal disputes and financial losses then delayed development for nine years.
Once the plant begins operating, Vinachem expects it to create more than 600 jobs, secure raw materials for Vietnam’s fertilizer industry, and contribute to local economic development and Laos’s state budget.
Vietnam imports nearly one million tonnes of potash annually, including around 350,000 tonnes from Laos, according to Vinachem. The company expects the new project to provide an additional source of raw materials for fertilizer production once the plant becomes operational.
Local Development
Lao authorities have extended the mine’s concession through 2037. Officials have emphasized that the project should prioritize local processing, skills transfer, and environmental protection.
Speaking at the ceremony, Deputy Minister of Industry and Commerce Phouthavanh Nanthavong urged investors to link production with local agriculture, transfer technical skills to Lao workers, and establish safeguards against soil and groundwater subsidence.
The project site in Muangkhay village covers 1,000 hectares and holds an estimated 32 million tonnes of potassium ore reserves.
Somsa-art Ounsida, chairman of the Khammouane Administration Committee, said provincial authorities are coordinating site clearance and auxiliary construction to help meet the 2028 operational target.
Developers plan to finalize environmental impact assessments and obtain project approvals by the end of this month.
Potash Expansion
Vinachem’s project is located in Nongbok District, where a Chinese-operated potash mine is already running. Sino-Agri International Potash, a subsidiary of Shenzhen-listed Asia-Potash International Investment, has operated in Khammouane since 2021.
In December 2024, two sinkholes opened in farmland in Pakpeng village, about 500 meters from the mine. Authorities subsequently suspended mining in the surrounding area.
A preliminary assessment in January 2025 suggested the mine may not have caused the sinkholes, but authorities have not made a final report public.
The incident comes amid rapid expansion in Khammouane’s potash industry. In December 2025, Asia-Potash completed trial operations on its third one-million-tonne production line, bringing its planned annual production capacity to three million tonnes.
That same month, the Lao government signed 16 agreements worth USD 1.088 billion for projects at the Asia-Potash Industrial Park in Thakhek and Nongbok districts.
