Xepon Mining continues gold exploration

The Department of Geology and Minerals, Ministry of Energy and Mines, signed an agreement on cooperation in the exploration of mineral ores in Xepon district, Savannakhet province, on an area of 206.72 square kilometres with Winham Minerals Laos Co., Ltd. on May 9, 2014, for a period of one year (from May 9, 2014, to May 8, 2015).
However, the technical specifications of the project could not be fulfilled in the timeframe defined in the Memorandum, which was then extended three times.
The first extension was for a two-year period from January 19, 2016, to January 18, 2018, in line with a Notice from the Department of Geology and Minerals No. 2015/MONRE.DGM, dated December 14, 2015.

Company and government officials gather at the project signing ceremony on Monday.	Xepon Mining Co., Ltd. pays US$3 million to the government as an advance fee for the project.

The second extension was for another two-year period from January 19, 2018, to January 18, 2020, in line with a Notice from the Department of Geology and Minerals, 081/MEM.DGM, dated January 19, 2018.
Then Winham Minerals Laos Sole Co., Ltd. was renamed Xepon Mining Company Limited on March 1, 2018.
The third and final extension was for a period of 18 months, under a Notice from the Department of Geology and Minerals, No. 389/MEM.DGM, dated March 25, 2020, on May 9, 2014 (the term of MOU is due on February 28, 2022).
On February 21, 2022, Xepon Mining Co., Ltd. and the Government of the Lao PDR held an official signing ceremony on the Extraction and Processing of Primary Gold Deposit in Xepon district, Savannakhet province.
Through this agreement, the Project complies with the requirements of the Government’s Decision No.107/PM.
On the same day Xepon Mining Co., Ltd. paid an advance financial obligation of US$3,000,000 to the Government.
In the initial phase, the first stage, the company will invest in the construction of a factory for the production and processing of gold minerals at a value of US$15,000,000 to US$20,000,000 within 2022.
In the second stage, at a value of US$35,000,000 to US$50,000,000 in 2025, while in the third stage the value will be increased according to the actual mineral ores. 
In the near future, the company will start official production. It is believed that the company will become one of the potential companies in producing and manufacturing gold minerals in the Lao PDR, which will contribute [financial] obligations directly and indirectly to the Government.
In addition, it is expected that it will generate 400-500 jobs for people living in the surrounding areas and that their livelihoods will be improved. The gold minerals extracted by the company will not be exported, but will be produced and processed only in Laos.

By Advertorial Desk
(Latest Update February 23, 2021)