Lao Government holds 10% of Phu Bia Mining shares

VIENTIANE,MAY (KPL) -The Government and the Phu Bia Mining Limited (PBM) in Vientiane Capital, last Friday signed a Shareholder Agreement to formalise the government’s 10 per cent ownership of the company.
The signatories to the agreement were signed by Vice-Minister of Finance, Mme Vienthong Siphandone and PBM Chairman, Mr. Chanpheng Bounnaphol.
“This agreement is an importance milestone for the PBM, which reflects the close and productive working relationship that company shares with the Lao government,” said Mr. Chanpheng, adding that “the PBM, a Lao-registered copper and gold producer, is 90 % owned by the publicly-listed Australian company PANAUST, with 10 per cent ownership by the Government of the Lao PRD.
Last year PBM’s Phu Kham Copper-Gold Operation produced 67,000 tonnes of copper, 60,000 ounces of gold and 500,000 ounces of silver. Production is expected to commence at the Ban Houaysai Gold-Silver in Saysomboun district, Vientiane province operation in 2012. “Not only 10 per cent of shares but the Lao government will also receive the royalty from the company, which accounts for almost 50 per cent of dividend,” said Mr Souvath Sisoutham, a PBM’s coordinator.
The output of PBM will be exported to sell in China, Republic of Korea and India.
The Pan Mekong Exploration transferred 500,000 shares or 10 % of the total shared in PBM to the government worth more than US$29 million.
The Ban Houaysai Gold-Silver mining in Saysomboun district is on 2, 636 km2, which has land concession over 30 years.