Govt mulls suspending approval for new mining proposals

The government is mulling to suspend considering new proposals for all kinds of mining projects as it takes action to properly regulate the existing ventures and pushes for processing minerals before export to maximise benefits for the mining sector – a key driver of the economy.
The focus will shift to monitoring and evaluating existing projects that were approved in the past, the Minister to the Prime Minister’s Office, Mr Bouakhong Nammavong, told members of the National Assembly (NA) on Tuesday, asking for support from lawmakers to back the suspension.

Members of the National Assembly debate in preparation for the 9th Ordinary Session of the NA’s 9th legislature scheduled for June 9-26.       --Photo National Assembly

“If a project progresses slowly, causes serious environmental and social impact, or overlaps with another one, it shall be revoked,” said Mr Bouakhong, who is also Head of the Prime Minister’s Office.
He made the remarks while presenting the socio-economic development plan for the last six months of 2025 at a meeting held in Vientiane as a lead up debate in preparation for the 9th Ordinary Session of the NA’s 9th legislature scheduled for June 9-26.
Mr Bouakhong said that projects that failed to comply with agreements signed with the government will be subject to a warning, and action will be taken to ensure they abide by the agreements within a specified timeframe. Those failing to do so will have their licence revoked.
An NA member for Vientiane, Valy Vetsaphong, said a warning would be a minor step, and there should be harsher punishment instead.
In the case of projects facing the revocation of their investment permits, the Government shall consider allowing other qualified investors to take over the projects on a case by case basis, according to the minister.
“If there are many companies interested in taking over such a project, an auction shall be organised,” he told the weeklong meeting.
While NA members largely support the government’s proposed suspension of new mining projects, some asked for exceptions to be made for rock and sand, which are needed for construction amid the government’s push for infrastructure development.
Mr Bouakhong said the government is speeding up efforts to transform piloted mining projects into normal ones after it launched piloted projects to boost revenue streams and fiscal operation.
The focus will also be on managing mineral excavation and processing, including gold and rare earth’s, to add value to the minerals. To bolster this effort, the government is “accelerating the study of a policy to support the construction of mineral processing plants in our country”, the minister said.
Presenting a draft five-year national socio-economic development plan for 2026-2030 to the meeting, the Minister of Planning and Investment, Dr Phet Phomphiphak, said the government promotes the processing of gold associated with the operation of the bullion bank, which was established recently. The government is also promoting the building of factories to process iron, potassium, fertilisers (NPK), bauxite and alumina.
Pointing to the rich resources coupled with promotion of processing, Dr Phet said the mining sector will be one of the key drivers of the economy over the next five years, for which the government has set a target of annual economic growth of 5 percent.

By Souksakhone Vaenkeo
 (Latest Update June 6, 2025)