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LAOS - WHERE WE WORK

Annamite Resources is named after the Annamite Mountains, which run along the border between Laos and Vietnam.

We focus on Laos because it has world-class ore deposits, but is one of the least explored countries in Asia.

Approximately 70% of the country is occupied by geologically prospective rocks with demonstrated endowment of world class copper and gold deposits.

​Our team has an proven discovery history in Laos and elsewhere, a deep knowledge of the local operating environment and a large proprietary dataset.

This allows us an unmatched ability to identify the best projects and work effectively with local partners and the regulatory regime.

 

Introduction to Lao PDR

The Lao People’s Democratic Republic (Lao PDR) is bordered by Burma and China to the northwest, Vietnam to the east, Cambodia to the south, and Thailand to the west. ​

Laos is ideally situated to market minerals to the rapidly developing economies of the surrounding countries.

Laos has a communist state system, but has moved progressively toward a market economy. Development of the Sepon, Phu Kham and Ban Houayxai mines by Australian companies has demonstrated Government willingness to support foreign investment in the mining industry. These mines contribute a large portion of foreign revenue for Laos, but they are nearing the end of their reserves so the Government is strongly motivated to support new projects.

A complex political history before independence and a centrally planned economy between 1975 and 1982 shielded Laos from rapid advances in modern exploration. As a result, Laos is now one of the least explored countries in Asia despite having some of the most attractive geology. This adds up to an exploration opportunity.

Laos Mineral Development

  • In the past two decades, three world class mineral deposits have been developed in Laos (Sepon copper-gold, Phu Kham copper-gold and Ban Houayxai gold-silver). Laos also includes part of the Loei fold belt that contains the 5Moz Chatree gold deposit. Despite this demonstrated mineral endowment, Laos remains one of the least explored countries in Asia. ​​

  • Recent enactment of a new mining law has clarified uncertainty in the regulatory regime, but implementing regulations are still under development so the government has imposed a moratorium on issuance of new exploration tenements. This focuses attention on existing tenements. Exploration on many of the existing tenements has stalled because the owners have either exhausted funds or have limited access to exploration skills. ​

  • The Annamite team has a great depth of experience working in Laos including discovery of the Phu Kham orebody and financing of the Sepon mine. This experience allows us to identify exploration opportunities in Laos and deal effectively with local joint venture partners and government.

 

 
  1. Lao PDR is one of the fastest growing economies in East Asia and the Pacific. It has improved access to electricity, schools, roads, and has become an important energy exporter.
  2. GDP growth averaged 7.7% over the last decade, with income per capita reaching $2,577 in 2018. Economic growth is expected to remain robust in 2018, at 6.5%, with growth expected to pick up in 2019-2020.
  3. The business climate is improving: companies now see growing opportunities from closer regional integration and reforms to improve the business environment, as evidenced by a steep decrease in political risk in Laos.
  4. The hydropower sector displays good success stories, as well as the few modern mines that are out there. Government needs now new revenues from mining as existing cash generating mines will downscale or close within the next three years.
  5. In the Doing Business 2019 Report, Laos ranks better or similar to other jurisdictions when comparing with metals-rich countries in Africa and Asia.
  6. In contrast, despite higher metal prices, the performance of the mining sector remains poorly developed. It boils down to conducting  proper exploration and developing modern efficient mines.
  7. Laos is now positioned for a new wave of mineral discovery and development. The first movers on this wave will have the best opportunity to capitalize on the wealth that will be created.

 

Laos has improved its risk profile by 20% over the last four years, according to the Mining Journal 2020 annual world risk assessment report, by far the largest increase globally in that period. From a risk perspectiv,e Laos now falls right in the middle of world mining jurisdictions and is the least risky country in SE Asia.​

 

The Investment Risk Index (IRI) provides jurisdiction-by-jurisdiction ratings across five core areas necessary to consider when assessing mining-related risk :
Legal, Governance, Social, Fiscaland Infrastructure.

Extract from Executive Summary of the Mining Journal report below:
The biggest improvers over a four-year period were Laos and Greenland, which put almost 20 and eight points respectively.