Lao PDR - Support for a Sustainable Development of the Mining Sector

Country / Region: Lao PDR / Southeast Asia

Focal Point: Mining

Begin of project: April 1, 2017

End of project: December 30, 2019

Status of project: June 15, 2020

Mining in Lao Source: BGR

Lao’s mining sector has the potential to play an important role in the country’s economic development. With a rising contribution of more than 10 % to Lao’s GDP (Gross Domestic Product) the sector is rapidly becoming an important source of economic growth, national revenue. However, besides the potential and benefits, there is the risk of significant environmental and social impacts caused by mining that can already be observed in Lao, like social problems due to lack of cooperation with local communities, environmental degradation and increased pressure on water resources. To reduce the risks and increase the economic and social benefits from mining, an effective governance system for the management of the mining sector is crucial. The new mining law enacted in 2008 and amended in 2012 comprises principles, regulations and measures concerning management of mining activities, protection of mineral resources, occupational health and safety monitoring and environmental protection. Due to the lack of implementing regulations, qualified specialists and overlaps’ regarding roles and tasks between institutions involved in mining activities the implementation of the  regulatory framework by the relevant sector agencies is still partially weak or missing.

Within the Lao-German Development Cooperation the BGR Technical Cooperation project “Support for a Sustainable Development of the Mining Sector” (SDMS) aims to enhance the technical and management capacity of government agencies, particularly the Department of Mines (DOM) and the Department of Energy and Mines (PDEM) in selected provinces, and thereby to enable them, to carry out its assigned tasks more efficiently.  The project aim is to enable the mine and environmental divisions of DOM and the local governments of selected provinces to fulfill their tasks in the fields of mining project assessments and mines inspection (mine safety, labor/health and environmental protection) and to establish a legal framework for mines inspection. On the long term, this shall contribute to a more transparent and sustainable governance and management of the mining sector in general.

Partner:

Ministry of Energy and Mines (MEM),

Department of Mines (DOM)

Department of Energy and Mines (PDEM)