Xaysomboun provincial officials and representatives of Phu Bia Mining Limited gather for a group photo after signing the MoU.

Phu Bia Mining, Xaysomboun sign agreement for US$4.8 million five-year community development fund

Phu Bia Mining Limited (PBM), a 90 percent-owned subsidiary of the Australian company PanAust Limited (a subsidiary of Chinese state-owned Guangdong Rising Holding Group), has signed a new Memorandum of Understanding (MoU) with Xaysomboun province to extend its Community Development Fund (CDF) for another five years (2025–2029).
This renewed commitment, valued at US$4.8 million, aims to further enhance and sustain community development initiatives in the province and bring significant improvements for communities around PBM operations.
Since the original Mineral Exploration and Production Agreement (MEPA) was signed with the government of Laos in 1994, PBM has made significant contributions to the national economy and local communities.
PBM’s Phu Kham Copper-Gold and Ban Houayxai Gold-Silver Operations have established international mining standards, generating more than US$1 billion in revenue for the Lao government through taxes, royalties and other payments.
PBM’s original CDF was implemented in 2005 and ran through to 2023, resulting in the completion of 460 projects across 26 villages in seven districts in Xaysomboun, Borikhamxay and Vientiane provinces with an investment of US$5.8 million.
The new MoU agreement reflects our ongoing commitment under the latest MEPA4 and increases PBM’s CDF contribution from US$380,000 to US$750,000 per annum.
The accumulated funds from previous years and 2025 allocations total US$1,858,725, which enables the PBM CDF to undertake larger-scale projects that address community needs and local development in line with Xaysomboun province’s socio-economic development plan.
Phu Bia Mining Managing Director, Mr David Reid, said: “The well-being of our local community members and employees is at the heart of what we do. Rigorous safety practices and procedures govern our mines, while we diligently monitor water quality, control dust, and enhance road safety around our operational sites. We also recognise our responsibility to safeguard the environment, and we strive to ensure a positive environmental legacy for future generations.”
The Principal Government Advisor, Mr Chanpheng Bounnaphol, added: “Supporting the well-being and development of host communities near our operations is central to our business and success in Laos.”
The PanAust Managing Director and CEO, Mr Daling Zheng, emphasised: “Phu Bia Mining’s expanded CDF investment highlights our ongoing dedication to socio-economic development in Xaysomboun province and across Laos. These initiatives are key to fostering sustainable livelihoods and long-term partnerships with local communities.”

By Advertorial Desk
(Latest Update September 5, 2025)