A major bauxite project in southern Laos is moving closer to production, with Lao and Vietnamese officials now turning their attention to the environmental risks and community impacts of the operation.
A workshop in Vientiane on 10 September brought together officials and project developers to discuss management, technical standards and preparations for a local workforce at the Dakcheung project in Xekong.
Construction of the Dakcheung bauxite mining and alumina processing complex began in late 2022, with production scheduled to start in 2028.
The complex will process bauxite into alumina, allowing Laos to process more of its mineral resources domestically before the material is exported or used in further production.
Phase one of the Dakcheung complex requires is designed to produce 1 million tonnes of alumina annually. Production capacity is planned to increase to 2 million tonnes by 2035.
The project is also expected to create more than 1,000 direct jobs during its first three years, rising to around 1,500–1,800 workers once fully operational.
Developers said they will prioritize local recruitment and training as the project moves toward production.
According to Lao state media, environmental management was a major focus of the discussions in the latest workshop. Talks also included measures to manage water resources, mining waste, and red mud generated during alumina production.
The project’s developers are Vietnam-Phuong Group (VPG) and its Lao subsidiary VPG Lao-Viet One Member Co., Ltd. (VLV) located in Dakcheung district.
Environmental Concerns
The focus on safeguards comes amid previous environmental and community concerns over bauxite mining in southern Laos.
In 2019, Thai and Chinese investors pursued a bauxite mining project on the Bolaven Plateau in Champasak Province, according to Mekong Watch. The area had already seen communities displaced and lost access to land amid agribusiness and hydropower development.
Despite a government advisory urging restrictions on mining, the project appeared to have been delayed rather than cancelled by mid-2020, raising concerns over potential impacts on livelihoods and the environment.
Lao and Vietnamese officials said the Dakcheung project must therefore combine industrial development with environmental safeguards and measures to limit its impact on local communities.
