NEWS

13.06.11
Mining drives socio-economic development in Lao PDR, reveals new ICMM research

Mining is contributing to local and national development outcomes in Lao PDR, according to a new report by the International Council on Mining and Metals (ICMM).

Utilizing mining and mineral resources to foster the sustainable development of the Lao PDR found that mining has come to represent 80% of foreign direct investment (FDI) in this mineral rich country. The mining industry is a significant contributor to the country's economy, providing 45%of total exports, 12% of government revenues and 10% of national income. These benefits have been complemented at the local level by stimulating markets and enhancing incomes.

“Mining is economically critical for millions of the world’s poorest people,” said Richard Taylor from MMG, who presented the study at the World Economic Forum on East Asia in Jakarta this week. “This study shows that through sound macro-economic management and careful planning, governments can successfully avoid the ‘resource curse’”.

The study also reveals key challenges. For example, sound management and improved transparency are needed to determine how mining can be integrated more fully and effectively into national growth and poverty-reduction strategies.

The research identified a need to develop a supportive enabling environment in which local businesses can seize opportunities in the mine supply chain. Diversity and gender issues were also recognized as challenges at the local level.

The Lao PDR report is ICMM’s fifth country case study examining the social and economic impacts of mining. The earlier studies took place in Ghana, Tanzania, Chile and Peru.

President of ICMM, Anthony Hodge said: “By building on the strengths of its approach so far, Lao PDR has the opportunity not just to capture very substantial socio-economic benefits from mining over the long term, but to become an exemplar in this respect for the wider region. It is hoped that the findings and analysis generated by this study will make that outcome even more likely.”

The case study was sponsored by ICMM's first Chinese member company, MMG, and the government of Lao PDR has broadly accepted all the findings of the report. It is jointly published by ICMM and the Ministry of Energy and Mines as well as the Ministry of Planning and Investment.


 

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