In order to speed up the implementation of the development of 48.52 sq km potassium ore, a new key mining project in Khammuan, on July 17, the Department of Geology and Minerals, Ministry of Energy and Mines organized the “Work Promotion Seminar of the 48.52 sq km Potassium Ore Exploration Agreement in Nonglome village, Nong Bok District, Khammuan Province” in Thakhek District, Khammuan Province. This meeting was specially organized by the Ministry of Energy and Mines based on the rapid progress of the Agreement by Asia-Potash International, in order to further accelerate the subsequent upgrading of mining rights. At the meeting, the Department of Geology and Minerals provided a detailed introduction to the project development and the content of the Agreement to relevant departments, with a focus on dividing the work responsibilities of each department to provide support for the rapid and efficient progress of the project.
The reporter learned that based on the conventional experience of Laos’ potassium ore industry, it usually takes 3 to 5 years for a company to obtain exploration rights and complete all related work such as exploration, feasibility study, and environmental and social impact assessment. In the Agreement, Asia-Potash International promises the Lao government to complete all the necessary work for upgrading the mining rights within two years. It’s planned to complete the preparation and review of the exploration report in the first year, and the preparation and review of the Feasibility Study Report and Environmental and Social Impact Assessment Report in the second year.
In the actual implementation of the Agreement, Asia-Potash International further reduced the work cycle significantly, completing all geological exploration work within 6 months after signing the Agreement, and preparing the Detailed Exploration Report, greatly shortening the exploration cycle. This means that the 48.52 sq km mining rights are expected to be upgraded from exploration rights to mining rights one year ahead of schedule, and the entire project will enter the development phase one year ahead of schedule, releasing the economic value of potassium ore in advance.
Khaophone Souklaphan, Deputy Director of the Department of Geology and Minerals, said that the overall exploration work of Asia-Potash International is advancing rapidly at present. After signing the Agreement, Asia-Potash International cooperated with the relevant departments of Khammuan to carry out exploration and drilling work on the site. It took only 106 days to complete all 36 drilling holes, detect the reserves of potassium ore resources, carry out geological structure research, and collect land use data in this area. The company completed the exploration work within the one-year exploration period specified in the contract, indicating that the company has the financial strength and an experienced technical team. At present, the company has completed the compilation of all exploration data and geological information, and submitted the Detailed Exploration Report to the Department.
It is reported that in April 2022, Asia-Potash International began to apply for mining rights for 48.52 sq km potassium ore in Nonglome village in Khammuan. The company stood out in the fierce competition among seven enterprises with its built capacity advantages of one million tons of potash fertilizer, technological pioneering advantages and the core concept of boosting the economic development of Laos.
On November 28, the government and the company officially signed the Agreement. At this point, Asia-Potash International owned mining rights of 214.8 sq km potash ore and exploration rights of 48.52 sq km potassium ore in Laos, with expected 1 billion tons of resource reserves of purified potassium chloride. It laid a solid foundation for the company to achieve a world-class potash supplier and build Laos into the world’s 4th-largest potash fertilizer production base.
Khaophone Souklaphan stated that, “While conducting exploration, Asia-Potash International paid attention to protecting the ecological environment and adopted targeted environmental protection measures to avoid any impact on the land and ecosystem of villagers. After completing the exploration, drilling and samples collection, the workers backfilled the holes and sealed with cement mortar to restore the surface to its original state and ensure the normal use of the villagers. During the drilling process, the company fully paid attention to the demands of relevant national departments, village committees, and the masses, and provided timely and sufficient compensation to the villagers in the drilling area. In addition, the company provided employment opportunities for villagers, improved their living conditions, and maintained harmonious development between the company and individuals, as well as society and the environment. It is hoped that Asia-Potash International can promote the early completion and operation of 48.52 sq km potassium ore, and bring more economic and social benefits to Khammuan.”
Zhu Xiangli, Deputy General Manager of Laos Potash Fertilizer Base of Asia-Potash International, stated that the unexpected progress of the project will release huge economic and social benefits. If the project is completed one year ahead of schedule, it can pay an additional US$ 30 million taxes to the Lao government, make output value increase by over US$ 1 billion and provide more than 5,000 job opportunities. It also have a strong economic driving effect, which can fully drive the flourishing development of commerce, retail, transportation, and other industries in the surrounding areas.
The booming mining industry is becoming an important force for the country to attract foreign investment and development in the industry. But we also see that the nonstandard implementation and the lack of management and supervision of mining in the past have caused many problems. For example, some developers or investors have delayed exploration and exploitation, defaulted on contracts, resold projects, and caused social and environmental impacts, which has caused serious damage to national assets.
Recently, the Fifth Ordinary Session of the 9th National Assembly announced the review results of the National Ten-Year Mineral Development Strategy (2021-2030) and the 2035 Vision, emphasizing once again that “For the approval of mineral development projects, we must choose reliable, experienced and skilled large companies to invest according to the actual situation”.
It is understood that compared to Asia-Potash International’s unexpected performance capability to immediately start construction and complete exploration within 6 months after the signing of the Agreement, other foreign-funded enterprises that obtained exploration rights earlier only started exploration recently after more than a year of preparation. Based on the outstanding resource planning and performance capability, rich experiences in project construction and strong technological innovation capability, Asia-Potash International has been selected by the government to develop 48.52 sq km potassium ore in Khammuan.
Asia-Potash International is the first company in Laos to achieve industrial production of potash fertilizer, and also the first company to achieve a production capacity of 1 million tons. It has become the largest potash fertilizer production supplier in Southeast Asia. At present, the company is maintaining the speed of “adding one million tons per year” and is expected to achieve the second 1 million ton project reaching design capacity and the third 1 million ton project being put into operation within the year. It plans to achieve a potash fertilizer production capacity of 5 million tons around 2025 and achieve a medium to long-term goal of 7 to 10 million tons. On this basis, the company also attaches importance to the comprehensive development and utilization of associated mineral resources, and extends the development of upstream and downstream industrial chain projects of potash ore through investment promotion.
Source: Lao News Agency