Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity
The President No. 291/P
Vientiane Capital, 13 December 2017
DECREE
of
THE PRESIDENT
of
THE LAO PEOPLE’S DEMOCRATIC REPUBLIC
on
The promulgation of the Law on Minerals (Revised Version)
The President Lao People’s Democratic Republic issues this Decree
Article 1: Promulgation of the Law on Minerals (Revised Version).
Article 2: This presidential decree shall inter into force from the date of signature.
The President of the Lao PDR
(Signature and Stamp)
Bounnhang Vorachith
Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity
National Assembly No. 063/NA
Vientiane Capital, 03November 2017
Resolution
of the
National Assembly
of the
Lao People’s Democratic Republic
On the Approval of the
Law on Minerals (Revised Version)
--------------------------------
Pursuant to Article 53, point 1 of the constitution (Revised year 2015) and Article 11, point 1 of the Law on National Assembly of Lao People’s Democratic Republic (Revised year 2015).
After the 4th Ordinary session of the VIII National Assembly legislature, Wide studies and considerations were undertaken and the agreement was reached on the content of the Law on Minerals (Revised) in the agenda of the afternoon session of 3 November 2017.
The Meeting Resolved that:
Article 1: The Law on Minerals (Revised) is approved by the majority votes.
Article 2: This Resolution is effective from the date it is signed.
The President of the National Assembly
(Seal and signature)
Pany Yathotou
Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity
National Assembly No. 31/NA
Vientiane Capital, 3 November 2017
Law on Minerals
(Revised Version)
PART I
GENERAL PROVISION
Article 1: (Revised) Objective
This Law defines the principles, rules, and regulations relating to managing, monitoring, and inspecting protection, trading, mineral resource and minerals utilization, and the campaign of minerals to make it transparent, efficient, and in order in detection, survey, excavation, and mineral processing, ensuring the protection of heath, life, and safety of effected community, workers, and social and environment protection; aiming to develop mineral area under economical plan, green and sustainability, friendly to environment, create opportunities for economic growth , transform to advanced industrialization gradually, contribute to national socio-economic development, improve the livelihoods of Lao people.
Article 2: (Revised) Minerals
Minerals is natural element, contents chemical and physical or abiotic characteristics, shapes in solid, liquid, and gas form such as gold, silver, copper, steel, tin, gems, stone, clay, sandstone, sand, salt, coal, fuel, natural gas, mineral water, warm water, and natural hot water.
Article 3: (Revised) Interpretation of Terms
The terms used in this law have the following meaning:
Article 4: (Revised) Ownership of minerals
Minerals on the ground, underground, and underwater of Lao PDR’s territory are under ownership of national communion which centrally administrated by government, and as unity over country.
Article 5: (Revised) Government policy on mineral activities
Government promotes human resource development to serve mineral work managements and developments.
Government supports, promotes the mineral work development by setting strategic and mineral development plans to most efficiently search, survey, excavate, and utilize minerals economically, to follow advanced industrialization, green and sustainable path.
Government is central to study geologic information by searching, mining inspection to collect geologic and mining information to satisfy excavating plan and efficiently mineral utilization and defining mineral resource reservation area for future development and sustainability of natural resource.
Government ensures efficiency in economy and choicely involves in mineral business activities.
Article 6: (Revised) Principle on mineral activities
Mineral activities shall be carried out in accordance with the following basic principles:
Article 7: Protection of the rights and benefits regarding minerals
The state protects the rights and highest benefit of the nation and rights and benefits of the persons undertaking mineral business and all ethnic communities under the law.
Article 8. Obligation to Minerals Protection
The Government shall take measures to protect minerals and mineral resources within the territory throughout the country.
The protection of minerals and mineral resources shall be the obligation of individuals, legal entities or organizations of all sector in Lao PDR.
Article 9: International Cooperation
The State supports and promotes regional and international cooperation concerning mineral activities in forms of sharing experiences, lessons learned, information, technique-technology, marketing, training and upgrading technical levels for staff, seeking technical assistance and financial support, and to comply with international Conventions and Agreements that Lao PDR is a party to.
Article 10: (Revised) Scope of Application
This law applies to individuals or legal entities, both domestic and foreign, who are undertaking mineral activities and mining business.
This law does not apply to crude oil and natural gas and radioactive minerals.
PART II
MINERAL DEVELOPMENT PLAN
Article 11: (New) Mineral Development Plan
Mineral development plan consists of national mineral development plan and provincial mineral development plan.
In addition, the state shall set mineral development strategies to support mineral development plan in each period.
Chapter 1
Mineral Development Strategy
Article 12: (New) Mineral Development Strategy
Mineral development strategy is fundamental policies on mineral management, administration, usage, protection and development.
Mineral Development Strategy shall consist of following contents:
Mineral development strategy shall be effective for ten years and consistent with the vision of fifteen years- Mineral development plan.
Article 13: (New) Mineral Development Strategy Drafting
Mineral development strategy shall be drafted in accordance with the following basic principles:
Ministry of Energy and Mine is responsible for researching and creating the Mineral development strategy to submit to the government for consideration and then submit to the National Assembly for the approval consideration.
Chapter 2
National Mineral Development Plan
Article 14: (New) National Mineral Development Plan
National mineral development plan is mineral development plan that is a part of five years -socio-economy development plan.
National mineral development plan consists of following contents:
Article 15: (New) National Mineral Development Plan Drafting
Ministry of Energy and Mine researches, drafts the National Mineral Development Plan by coordination with others concerned agencies to submit to the government for consideration and then submit to the National Assembly for the approval consideration.
The National mineral development plan shall be created under following conditions and factors:
Article 16: (New) the Revision of National Mineral Development Plan
In case of necessity, the state can review and edit the National Mineral Development Plan, and then submit to the National Assembly Standing Committee for the approval consideration.
If the revision of National Mineral Development Plan is content editions relating to Ministry of Energy and Mine, provincial Mineral Development Plan, the edited results shall be informed to related capital, province for the edition of their own mineral development plan.
Chapter 3
Provincial Mineral Development Plan
Article 17: (New) Provincial Mineral Development Plan
Provincial Mineral Development Plan is Mineral Development Plan that is a part of, five years – provincial socio-economy development plan, National Mineral Development Plan.
Provincial Mineral Development Plan consists of similar contents to National Mineral Development Plan as defined in Article 14 in this law.
Article 18: (New) Provincial Mineral Development Plan Drafting
Twelve months previous to the end period of the National Mineral Development Plan, the Division of Energy and Mine shall coordinate with relating divisions and units to research and collect the basic information for drafting of a Provincial Mineral Development Plan and submit to the Ministry of Energy and Mine for recommendation before submitting to the mayors, provincial governors for consideration on submitting to the Provincial People’s Council for the approval consideration.
After the approval from the Provincial People’s Council, the Division of Energy and Mine shall submit such plan to the Ministry of Energy and Mine to include on the National Mineral Development Plan.
The Provincial Mineral Development Plan shall be created under conditions and factors in Article 15 of this law.
Article 19: (New) The Revision of the Provincial Mineral Development Plan
In case of necessity, the capital, provincial government can review and edit the Provincial Mineral Development Plan, and then submit to the Provincial People’s Council for the approval consideration.
Part III
MINERALS
Article 20: (Revised) Basic Geological Surveys
Basic geological surveys refer to the initial investigation and reconnaissance regarding the occurrence of mineralization, study of geological structures, for drafting of basic geological maps and mineral resources to be references for the classifications of minerals categories and mineral resources areas over Lao PDR.
The Ministry of Energy and Mine is responsible for basic geological surveys over the whole territory in coordination with the other concerned sectors and local administrative authorities.
Article 21: (Revised) Mineral Classification
Minerals are classified into the following three categories:
In these three categories of Minerals there exist Reserved and Restricted Minerals which the State shall determine based on the proposals of the Ministry of Energy and Mine.
Article 22: (Revised) Minerals Resources and Accumulated Quantity Evaluation
Mineral resources are natural accumulation or occurrences of minerals on or under the surface of ground which benefit for economy, have quantity and quality to excavate and use efficiently.
Accumulated quantity evaluation is the calculation of quantity and quality of minerals contain in the ground.
Minerals and Mineral Resources accumulated quantity evaluation shall be conducted under standard methods in accordance with international rules on Mineral Resources evaluation such as JORC Code, SAMREC, CIM Standard, Reporting Code, SME Guideline, CRIRSCO, NAEN Code, and UNFC.
Article 23: (Revised) Restricted Areas
Restricted Areas are areas where no mineral activities are allowed including the as follows:
The Ministry of Energy and Mine periodically coordinates with concerned Ministries and local administrative authorities to research and submit to the government for consideration on defining restricted areas.
Article 24: (Revised) Reserved Areas
Reserved areas, are Mineral Resources Areas reserved for extraction of a specific mineral(s) or reserved for the development of an area of abundance of natural resources related to tourism.
The Ministry of Energy and Mine periodically coordinates with concerned Ministries and local administrative authorities to research and submit to the government for consideration on defining reserved areas.
Article 25: (Revised) Toxic Area
A toxic area is a chemical, poisonous or toxic contaminate area where is dangerous to lives such as: areas with arsenic mineral, mercury mineral.
The Ministry of Energy and Mine periodically coordinates with concerned Ministries and local administrative authorities to research and submit to the government for consideration on defining toxic areas.
Article 26: (Revised) Areas Licensed for Mineral Activities
Areas licensed for mineral activities are mineral resource areas or preserved areas defined as priority areas for mineral activities business in accordance with defined conditions and standards.
If different sectors need to use the same area but have different objectives, the Government shall agree based upon a comparative study of the socio-economic benefits, socio-environmental impacts, and consistency with long term socio-economic development.
PART IV
MINERAL ACTIVITIES
Article 27: (Revised) Mineral Activities
Activities concerning minerals are as follow:
Article 28: (Revised) Prospecting
Mineral prospecting refers to the study of data and information and field work to determine geological conditions of the area and occurrences of mineralization including evaluation of mineral data aiming to identify feasible areas for exploration. The mineral prospecting shall use advanced equipment to ensure the efficient results.
Individuals, entities, and organizations are not allowed to operate mineral prospecting without legal approvals.
Article 29: (Revised) Exploration
Mineral exploration refers to the study and evaluation of geological structures and mineral sources, within the identified areas, that may include geological work, geophysics, drilling, tunneling, trenching, pitting, sampling, analysis and assay and other activities to learn about quantity and grade of any mineral reserves and to assess the Technical-Economic Feasibility Studies for mining.
Individuals, entities, and organizations are not allowed to operate mineral exploration and mineral mining without legal approvals.
Article 30: (Revised) Technical-Economic Feasibility Studies
Technical-Economic Feasibility Studies is reviews and evaluations of the results from mineral exploration in order to determine the best option for mineral development by comparison in technics, technologies, marketing, investments, and the impacts on social and natural environment.
Article 31: (Revised) Mining
Mining is the extraction of minerals from the surface and underground by any process of excavating, mining, digging, drilling, pumping, blasting, concentrating, removing, and storing of minerals.
Individuals, entities, and organizations are not allowed to operate mining without legal approvals.
Article 32: (Revised) Mineral Processing
Mineral processing is the procedure of extraction economic value products from raw minerals and coal by crushing, grinding, separating, washing, refining, separation by machine, collection of mineral head, polishing, floating, filtering, electrical separation, smelting, storing, and managing the waste of productions.
Article 33: (Revised) Selling and Buying Minerals and Mineral Products
Selling and Buying minerals and mineral products is an agreement between the mining investors with individuals or legal entities, both domestic and foreign, to trade mined minerals and process into products or commodities to supply to domestic and international markets.
Processing approved individuals or legal entities are able to buy, sell, and import raw materials and semi-finished products to process into products or commodities to supply to domestic and international markets.
Article 34: (Revised) Transportation of Minerals and Mineral Products
Transportation of minerals and mineral products refers to the moving of minerals and mineral products from one location to another location domestically or to overseas or from overseas into domestic market, which must be done in accordance with this law and other relevant laws and regulations.
Article 35: (Revised) Mine Closure
Mine closure refers to the improving procedures or mining area rehabilitation after the completion of exploration activities in any area to hand over concession area to the government.
Article 36: (Revised) Handing over/Transfer the Mining Area
Transfer the mining area is the handing over the rights on the licensed mining area to the government.
PART V
MINERAL BUSINESS
Article 37: (Revised) Forms of Investment in Mineral Business
Forms of investment in mineral business shall operate in only the form of Company as provided in the Enterprise Law.
Article 38: (Revised) Types of Mineral Business
Mineral Business includes the following two types:
Article 39: (Revised) Mining Business
Mining Business is the activities on prospecting, exploration, Technical-Economic Feasibility Studies, mining including the action on mining concession right.
Article 40: (Revised) Business on Specific Categories of Minerals.
Business on specific categories of minerals does not have to follow all the steps of prospecting and exploration in the operation of its mining business.
Types of business related to special categories of minerals are as follows:
Article 41: (New) Service Business on Mineral Business
Service Business on Mineral Business is business operation to supply services on prospecting, exploration, mapping, geophysics, drilling, mining, transportation, mineral trading, analysis and mineral consultation and other services on minerals.
Legal entities intend to operate Service Business on Mineral Business shall apply for enterprise establishment in accordance with the enterprise law and law on investment promotion.
PART VI
MINING BUSINESS
Chapter 1
Prospecting, Exploration and Technical-Economic Feasibility Studies
Article 42: (New) The investment in Prospecting, Exploration and Technical-Economic Feasibility Studies activities
Legal entities intend to invest in Prospecting, Exploration and Technical-Economic Feasibility Studies activities shall apply to Investment Single window of service office for investment licenses in accordance with the Law on investment promotion.
There is no requirement of the contract on Prospecting, Exploration and Technical-Economic Feasibility Studies activities.
After obtaining the investment licenses, the investors shall apply for the approvals on Prospecting, Exploration and Technical-Economic Feasibility Studies operation to the Ministry of Energy and Mine.
Article 43: (Revised) Field Data Collection
Legal entities intend to operate mineral business can collect field data in any specific area which is not restricted area and permitted minerals by government but must have the approvals from the Ministry of Energy and Mine.
The Application on field data collection activities shall include following documents:
The conditions on the approvals of the field data collection activities are defined in other regulations, the investors have no monopolized rights of the area.
Article 44: (New) The Consideration on Field Data Collection Approvals
The Ministry of Energy and Mine shall consider the application for Field Data Collection within ten workdays from the date of the complete document is received. The applicant shall be notified of the result, in case of declination, of consideration in writing within such period.
The Field Data Collection activities are defined in other regulations.
Article 45: (New) Rights and Obligation of Business Operators related to Filed Data Collection
Business operators undertaking activities related to the Filed Data Collection have following rights and obligations:
Article 46: (New) Application of the Prospecting License
After permission on investment license, the investor shall apply to the Ministry of Energy and Mine for prospecting license within thirty workdays from the date of receiving complete and correct application documents.
The application of the prospecting license shall include following documents:
Article 47: (New) Prospecting License
Prospecting License is right verifying document for investors who operate prospecting business under approved plan by Ministry of Energy and Mine.
Prospecting License shall content following terms:
Conditions on prospecting license implementation are as follows:
The Prospecting License is invalid for handing over, transferring and selling, using for joint stock and collateral for loans or other benefits negotiating tools.
Article 48: (New) Term of Prospecting License
Prospecting License is valid up to two years with extendable once but not more than one year.
Conditions on Prospecting License renewal are as follows:
Article 49: (New) Licensed Prospecting Area
A legal entity can operate one area of mineral prospection which covers maximum of two hundred square Kilometers. The applied area must be consistent with concession area management system of the Ministry of Energy and Mine.
Licensed prospecting area for each mineral type is defined in other regulations.
People stay in that area can continue their livelihoods as usual.
Article 50: (New) Application of Exploring License
After completion of prospecting and founding the feasibilities in exploration, the investor shall apply to the Ministry of Energy and Mine for exploring license within ninety days previous to expire date of the prospecting license.
The Ministry of Energy and Mine considers the application within thirty workdays from the date of receiving reports on prospection and exploring application.
The exploring application shall include following documents:
For area that has been prospected and have geologic information, any legal entity can directly apply for exploration.
Article 51: (New) Joint Stock During Exploration Term
During the exploration term, the investors are able to joint stock with other investors after receiving approvals from National Investment Promotion and Management Committee which applied by the Ministry of Energy and Mine.
The conditions on the Joint Stock are as follows:
Article 52: (New) Exploration Certificate
Exploration License is right verifying document for investors who operate exploration business under approved plan by Ministry of Energy and Mine.
Exploration License shall content following terms:
Conditions on Exploration License implementation are as follows:
In case of renewal, the investors shall apply to the Ministry of Energy and Mine with complete documents within ninety days before the expire date of the Exploration License.
The Exploration License is invalid for loans collateral.
Article 53: (New) Term of Exploration License
Exploration License is valid up to three years with extendable once but not more than one year.
Conditions on Exploration License renewal are as follows:
Article 54: (New) Licensed Exploring Area
A legal entity can operate one area of mineral exploration which coverage shall base on the results of prospection. In case of prospected information verifies the minerals out of the licensed area, the investors are able to apply for area expansion by ten percent of licensed area from the government or the National Assembly Standing Committee base on cases.
Article 55: (New) Accumulated Mineral Verification
Before acceptance of exploration reports, the Ministry of Energy and Mine shall appoint a committee for inspecting and evaluation accumulated mineral as standards defined in Article 22 of this law to verify the mineral accumulated volume.
Article 56: (Revised) the Return of Prospecting and Exploring Areas
After the completion of prospection, the investors shall return the non-economic area at least twenty five percent of the implemented area to the government along with prospected information. If remaining prospecting areas include two or more with unattachment on each, the investors are able to apply for reservation of those areas for exploration but not over than three areas.
In case of prospecting or exploring area includes mineral information wit geologic and mineral verifications, the investors are able to reserve that area.
The investors shall inform the to return prospecting and exploring areas to the Ministry of Energy and Mine in written for issuing certificate of returning within thirty days from the date of informed.
The return of prospecting and exploring areas are not compensated in any cost or replaced with new areas.
Article 57: (Revised) Sending Samples for Analysis
An investor for mineral prospecting and exploration who has the intention to send mineral samples for analysis in the domestic or overseas shall apply for authorization from the Ministry of Energy and Mine.
The investor shall split the mineral samples that will be sent for analysis to the Ministry of Energy and Mine for storage and comparative analysis. After the completion of the analysis, the investor shall submit a summary report on the result of analysis to the Ministry of Energy and Mine.
The quantity, volume and weight of samples that will be split for analysis and for the Ministry of Energy and Mine are determined in other regulations.
Article 58: (New) Technical-Economic Feasibility Studies
After the acceptance of summary report on mineral exploration, the investors shall apply for certificate of Technical-Economic Feasibility Studies implementation to the Ministry of Energy and Mine within fifteen workdays from the date of receiving applications.
The Technical-Economic Feasibility Studies shall be implemented in accordance with regulations of the Ministry of Energy and Mine.
Article 59: (New) Definition of Term of Technical-Economic Feasibility Studies
Term of a Technical-Economic Feasibility Study is up to two years with extendable once but not more than one year.
The investors shall pay for concession fee and other obligations under the laws and regulations.
After the completion of Technical-Economic Feasibility Study, the licensed investors are able to implement mining under the negotiations and contracts with the government.
Article 60: (Revised) Sending Mineral Samples to Select Technology for Designing Plant
The licensed Investors for Technical-Economic Feasibility Study can send mineral samples in the domestic or overseas for testing in order to select technology in designing a plant; for metallic and non-metallic minerals not over three hundred tons, for coal not over one hundred tons; with the approval from the Ministry of Energy and Mines.
The investors shall pay mineral resources fees and other obligations under the laws for products obtained from the testing of mineral samples.
The products obtained from the testing of mineral samples may be sold with the consent of the Ministry of Energy and Mine.
The results of analysis and plant designing shall be reported to the Ministry of Energy and Mine in written with verifying documents no later than three months from the date of approval for Sending Samples for Analysis.
In case of differentiation on the results of mineral samples analysis of investor and government, the analysis results of the third party with international standard is considered to be basis for obligation to state calculation.
The conditions for gems are defined in other regulations.
Article 61: (New)The Acceptance of Report on Prospection
The Ministry of Energy and Mine accepts prospection reports with following contents:
Article 62: (New)The Acceptance of Report on Exploration
The Ministry of Energy and Mine accepts exploration reports with following contents:
The Ministry of Natural Resources and Environment accepts the results of natural-social environment information collection, natural-social environment inspecting and managing plans.
Article 63: (Revised) The Acceptance on Technical-Economic Feasibility Study Reports
The Ministry of Energy and Mine accepts the Technical-Economic Feasibility Study Reports no later than one hundred and twenty days from the date of receiving complete and correct reports.
The Ministry accepts Technical-Economic Feasibility Study Reports with following contents and documents:
For large project, the Ministry of Energy and Mine requests the evaluation, from the third party, of Technical-Economic Feasibility Study Reports, natural-social environment impact evaluation reports, rehabilitation and mine closure plans. The costs of the such evaluation is on licensed investor on Technical-Economic Feasibility Study.
Article 64: (New) Suspending Certificates of Prospecting, Exploration, Technical-Economic Feasibility Study
Certificates of Prospecting, Exploration and Technical-Economic Feasibility Study are suspended in any of following cases:
The Ministry of Energy and Mine notifies suspending decision in written to the investors and allocates deadline for correctly solving or improving after receiving the notification.
Article 65: (New) Revoking Certificates of Prospecting, Exploration, Technical-Economic Feasibility Study
Certificates of Prospecting, Exploration and Technical-Economic Feasibility Study are revoked in any of following cases:
The Ministry of Energy and Mine revokes the certificates after twice notifications for improving and solving situation.
Chapter II
Mining
Article 66: (New) Investment in Minerals Mining
The Investment in Minerals Mining shall have mineral developing concession contract, mining approvals and mine closure.
Article 67: (New) Negotiation on Mine Developing Concession Contract
After the acceptance of the Technical-Economic Feasibility Studies reports, the investors have the rights to apply for investment to the Investment Single Window Service Office for negotiating mineral developing concession contracts.
The Ministry of Energy and Mine submits to National Investment Promotion and Management Committee for approvals on proceeding negotiation of mineral developing concession contracts.
The negotiation of mineral developing concession contracts shall include representative participants from Ministry of Energy and Mine, Ministry of Planning and Investment, relevant local administrative authorities and sectors.
For large project and projects which impact reserved forests, protection forests, watersheds, communities must apply to National Assembly Standing Committee for approvals.
Article 68: (New) Term of Negotiation
The Term of Negotiation is not over one hundred eighty days. In case of fails in negotiation within such term, the investors are able to apply for renegotiation once to Mine, Ministry of Planning and Investment within sixty days from the date of ending negotiation.
The term of second negotiation is not over one hundred twenty days.
The mineral developing concession contract is canceled if investors do not have mining certificate or the certificates were revoked, canceled or expired.
Article 69: (New) Signing of Mineral Developing Concession Contract
After completion of the negotiations on mineral developing concession contract, National Investment Promotion and Management Committee must inform the results to the government for consideration.
In case of the agreement on mining project, the Prime Minister issues the Power of Attorney to Minister of Ministry of Planning and Investment and/or Minister of Ministry of Energy and Mine to sign the Mineral Developing Concession Contract by witnesses of relevant local administrative authorities.
Article 70: (Revised) Steering and Managing Committee on Large Mining Project
The Steering and Managing Committee on Large Scale Mining Project is appointed by the Prime Minister by the applying from the Ministry of Energy and Mine. The Steering and Managing Committee on Large Mining Project is established to ensure the correct and effective implementation of the contract to ensure compliance. which consists of:
The organization and activities, including the rights and duties of the Steering and Managing Committee on Large Mining Projects shall be provided in specific regulations.
Using the National Budget for the expenditure of the Steering and Managing Committee on Large Mining Projects.
Article 71: (New) Mining Application
After receiving Investment Certification and signing the Mineral Developing Concession Contract, the investors must apply for mining approval to the Ministry of Energy and Mine.
The Ministry of Energy and Mine considers the application and issues the Mining License within thirty days from the date of receiving applications.
Article 72: (New) Mining License
The Mining License is verifying document for licensed investor to implement mining activities under the undertaken plans by the Ministry of Energy and Mine.
The Mining License shall include following contents:
Conditions on the Mining License implementation are as follows:
In case of renewal, the investors shall apply to the Ministry of Energy and Mine within ninety days before the expire date of the Mining License.
The Mining License is invalid for loans collateral.
Article 73: (New) Term of Mining License
The term of Mining License is not over twenty years with extendable ten years each time, the term of Mining License includes inspecting period after mine closure.
Conditions on renewal of the Mining License implementation are as follows:
Article 74: (New) Mining Implementation
Investors shall implement mining operation by advanced techniques and technologies with standardized in construction and safety, less negative impacts on environment and social communities in that area.
Mining Implementation is divided into two works as Mine Constructing and Mining Operation.
Article 75: (New) Mine Constructing
Mine Constructing includes the constructing of mining area, minerals storing area, minerals transporting road, processing factory, mineral tail storing reservoir and other infrastructure for serving mining activities.
Before the implementation of Mining Constructing, the investors shall submit the Mining Constructing plans to the Ministry of Energy and Mine for approval consideration.
Mining Constructing plans include:
Article 76: (New) Mining Operation
Mining Operation is the mineral bringing out of mine into production process.
Before the implementation of Mining activities, the investors shall submit the Mining Operation plans to the Ministry of Energy and Mine for approval consideration.
Mining Operation plans include:
Article 77: (Revised) Mineral Processing
A Mining operation shall be related with mineral processing in country in principal to upgrade mineral values by using modern and advanced techniques and technology to produce semi- finished or finished product depending on the type of mineral in order to supply commodity within the country and for the export.
In case of a legal entity intends to operate Mineral Processing business which is not related to mining, such legal entity must apply to the Ministry of Energy and Mine for consideration.
Article 78: (New) Selling-Buying, Importing and Exporting Mineral Products
The promoted investors on mineral processing in country to upgrade mineral values have a right of selling-buying, importing and exporting mineral products.
The Mineral Processing licensed investors have a right of selling-buying, importing materials and semi-finished products for processing and supplying to domestic market and export.
Article 79: (New) Mineral Product Transportation
Mineral Product Transportation shall comply with this law and other relevant laws with following verifying documents:
Article 80: (New) Mine Closure Operation
After completion of mining, investor must operate mine closure in compliance with mine closure procedures, timetables and evaluations of the expenditures on area rehabilitation, mine closure and the inspection after mine closure in accordance with the approved Mine Closure and Mining Area Rehabilitation plans.
The continually implemented mining and mine closure plans from the beginning of mining operation must be reviewed and improved in every three years.
The investors must periodically report the progress of mining area rehabilitation and mine closure to the Ministry of Energy and Mine.
Two years before end of mine closure, the Ministry of Energy and Mine coordinates with The Ministry of Natural Resources and Environment, relevant local administrative authorities and communities in project areas to consult on the utilize of land, infrastructure, building and others.
After completion of mining area rehabilitation and mine closure, the investors must return the concession area along with infrastructure and other relevant rights to the state. If investors correctly complete all the conditions, the Ministry of Energy and Mine issues certificate of Mine Closure and concession area returning.
Article 81: (New) Warranty of Environment Rehabilitation and Mine Closure
Investors must warrant the costs of environment rehabilitation and mine closure including the inspecting activities after mine closure by type of money, bond or other financial tools in a bank in Lao PDR as value in the approved Mine Closure and Mining Area Rehabilitation plans.
The Warranty of Environment Rehabilitation and Mine Closure is implemented as follows:
If term of the project is among sixteen to twenty years, investors must warrant fifteen percent of value in the first year then averaging of the remaining value to each year.
If term of the project is among ten to fifteen years, investors must warrant twenty percent of value in the first year then averaging of the remaining value to each year.
If term of the project is among five to nine years, investors must warrant twenty five percent of value in the first year then averaging of the remaining value to each year.
If term of the project is less than five years, investors must warrant fifty percent of value in the first year then averaging of the remaining value to each year.
Chapter 3
Mining Concession Auction
Article 82: (New) Mining Concession Auction
Mining Concession Auction is the auction on the rights of mine prospection, mining or development.
Areas for Mining Concession Auction are as follows:
The Ministry of Energy and Mine shall announce and invite legal entities to join the Mining Concession Auction. After completing the auction, the Ministry shall report the results to National Investment Promotion and Management Committee for approval consideration of the investment.
Principles, conditions, procedures and methods of the Mining Concession Auction are defined in specific regulations.
Article 83: (New) Data Accessing
The Ministry of Energy and Mine shall support data on auctioning areas to the auction participants, along with providing the supports on office and field data accessing.
Article 84: (New) Conditions of Auction Participants
Mining Concession Auction must be implemented in transparency in order to select bidders who provides most benefits to the state.
Conditions of Auction Participants are as follows:
Part VII
Business related to Special Categories of Minerals
Chapter 1
Artisanal Mining of Metallic Mineral
Article 85: (Revised) Artisanal Mining of Metallic Minerals
Artisanal mining of Metallic Minerals is extraction activity by using primitive tools, equipment without chemical such as utensils for panning minerals, hoe, shovel, spade.
Article 86: (New) Management of Artisanal Mining of Metallic Minerals
Capital, Provincial Division of Energy and Mine, City and Municipal office of Energy and Mine are the management of the Artisanal mining of Metallic Minerals.
Artisanal mining of Metallic Minerals shall be permitted only for Lao citizens residing in the concerned community.
Energy and Mine sectors periodically coordinate with the Ministries and related local administrative authorities to issue managing regulations on the inspection of the Artisanal Mining of Metallic Minerals implementation including implementation monitoring and inspecting.
Chapter 2
Non-Metallic Constructing Mineral Mining
Article 87: (New) Non-Metallic Constructing Minerals
Non-Metallic Constructing Minerals is Non-Metallic Minerals using for constructing purposes such as road construction, building construction.
Non-Metallic Minerals using for construction are as follows:
Article 88: (New) Exploration, Mining of Non-Metallic Constructing Minerals
The Exploration, Mining of Non-Metallic Constructing Minerals must be implemented in compliance with Article 50, 90, 91 and Article 92 of this law.
Chapter 3
Non-Metallic industrial Minerals Mining
Article 89: (New) Non-Metallic industrial Minerals
Non-Metallic industrial Minerals is all types of Non-Metallic Minerals that used in industrial purposes.
Business related to Non-Metallic industrial Minerals Mining must be implemented in compliance with Article 90 of this law.
Article 90: Non-Metallic industrial Minerals Mining
Non-Metallic industrial Minerals Mining shall be implemented in compliance with follows:
The evaluation procedures used for the approval of Non-Metallic industrial Minerals Mining are in level lower than procedures for Mining Businesses and easier Technical-Economic Feasibility Studies reports.
The approval of Non-Metallic industrial Minerals Mining must include Mine Developing Concession Contract.
Article 91: (New) Application Documents for Non-Metallic industrial Minerals Mining
Application Documents for Non-Metallic industrial Minerals Mining of quantities less than one hundred thousand cubic meters per year are as follows:
Application Documents for Non-Metallic industrial Minerals Mining of quantities over than one hundred thousand cubic meters per year are as follows:
Article 92: (New) Approval of Non-Metallic industrial Minerals Mining
After receiving complete application documents from the Investment Single window of service office, the Energy and Mine Sector must investigate and inspect the applying mining area and provide comments to the Investment Single window of service office as defined in law on investment promotion.
For the provincial consideration of the applications, the Division of Energy and Mine in provinces reports and requests the comments from the Ministry of Energy and Mine before submitting comments to the Investment Single window of service office.
The certificate of Non-Metallic industrial Minerals Mining is valid up to five years with extendable five years per once.
PART VII
SAFETY, HEALTH AND ENVIRONMENT
Chapter 1
Safety and Health
Article 93: Occupational Safety and Health
The investor in mining business shall be required to develop a system to ensure safety and to protect the health of labor by identifying measures and establishing a warning system to prevent, control, eliminate, or minimize the impacts and risks that are dangerous to mining labor in the mines area, by consistence with related laws.
All activities concerning minerals shall institute a Mine Safety and Labor Health Committee which consists of the participation of employers and employees’ representative in accordance with the Labor Law and other related laws.
The investor in mining business shall cooperate and facilitate the committee operations and duties.
Article 94: (Revised) Measures ensuring Occupational Safety and Health
In order to ensure the Occupational safety and health, investors concerned with mineral business shall implement main measures as follows:
Article 95: (Revised) Report on Accidents
For any accident or other occurrence happening from activity related to mineral business that has or might have unfavorable impact on the environment or health of people or the community, investor must report, within twenty four hours, to local administrative authorities, Division of Energy and Mine and surrounding people, and provide timely protection remedy measures. In case of severe accident, death, serious injury, the investor must report to the Ministry of Energy and Mine.
After receiving the such reports, the Ministry of Energy and Mine shall urgently coordinate with line ministries local administrative authorities and related agencies for impacts estimation and causes investigation, defining remedy measures and providing protection measures.
Chapter 2
Environment
Article 96: Natural and Social Environment Protection
In order to avoid or minimize negative natural and social environment impacts, investors in mineral activities must perform measures as follows:
Article 97: Mineral Area Sustainable Development
In order to ensure Mineral Area sustainable development, investors related to mineral business must comply with following practices:
PART IX
RIGHTS AND OBLIGATIONS OF THE MINERALS BUSINESS
OPERATORS
Chapter 1
Rights and Obligations of the Mining Business Operators
Article 98: (New) Rights and Obligations of Licensed Prospectors
A licensed prospector has following rights and obligations:
Article 99: (New) Rights and Obligations of Licensed Explorers
A licensed explorer has following rights and obligations:
Article 100: (New) Rights and Obligations of Licensed Business Operators related to the Technical-Economic Feasibility Studies
A Licensed Business Operators related to the Technical-Economic Feasibility Studies has following rights and obligations:
Article 101: (New) Rights and Obligations of Licensed Mining Business Operators
A licensed Mining Business Operator has following rights and obligations:
Chapter 2
Rights and Obligations of the Business Operator
related with the Special Categories of Mineral
Article 102: (New) Rights and Obligations of the Licensed Business Operator related to the Artisanal Mining
A licensed Business Operator related to the Artisanal mining has following rights and obligations:
Article 103: (New) Rights and Obligations of the Licensed Non-Metallic Constructing Minerals Mining Business Operators
A licensed Non-Metallic Constructing Minerals Mining Business Operator has following rights and obligations:
Article 104: (New) Rights and Obligations of the Licensed Non-Metallic Industrial Minerals Mining Business Operators
A licensed Non-Metallic Industrial Minerals Mining Business Operator has following rights and obligations:
Article 105: (New) Rights and Obligations of the business in services operators related to the Minerals Businesses
A business in services operator related to the Minerals Businesses has following rights and obligations:
PART X
GOVERNMENT’S SHARE
Article 106: (Revised) Equity Participation by the Government
The government has the rights to undertake the share of minerals business in maximum of twenty five percent.
After the acceptance of the reports on Technical-Economic Feasibility Studies, the ministry of Energy and Mine shall submit such reports to the Ministry of Planning and Investment for consideration on proposing to the government for consideration of shares undertaking.
Payment of Share by Government shall be implemented in accordance with Enterprise Law or Joint venture agreement.
Article 107: (Revised) Notice of Equity Participation by the Government
Government shall notify the mining business investors on its intent to participate or not to participate in the equity no later than one hundred and twenty days after the date accepted of Technical-Economic Feasibility Studies reports.
PART XI
PROHIBITIONS
Article 108: (Revised) General Prohibitions
It is prohibited for individuals, entities or organization to conduct the following activities:
Article 109: (Revised) Prohibitions for Staff and Mining Inspectors
The following conduct is prohibited for staff and mining inspector:
Article 110: (Revised) Prohibitions for Investors
It is prohibited that domestic and foreign investors conduct followings activities:
PART XII
DISPUTE SETTLEMENT
Article 111: Forms of Dispute Settlement
Dispute settlement may be conducted in any of the following forms:
Article 112: Mediation or Conciliation
When a dispute occurs during a business operation and a mineral business operation, the concerned parties may negotiate, conciliate or mediate to reach amicable agreement.
Article 113: Administrative Settlement
The mineral management and inspection organizations, in coordination with concerned sectors and local administrative authorities at the same levels, shall settle disputes related to administrative matters such as undertaking of a mineral business operation without a license, unfulfillment of tax and fee obligations in accordance with the law. If the mineral business operators are not satisfied with the decision, such persons may propose the dispute to the next higher level for settlement.
Article 114: Settlement by the Committee for Economic Settlement
If the dispute occurred from mineral business operation cannot be settled by administrative settlement, a mineral business operator may present the dispute to the Committee for Economic Settlement for settlement or mediation in accordance with laws.
Article 115: Judgment by People’s Court
A dispute related to a business operation and a mineral business operation that cannot be settled by mediation and remedy, the disputants may submit the dispute to the People’s Court for judgment in accordance with laws and regulations.
Article 116: Dispute Settlement that has International Component
The dispute settlement related to a business operation and a mineral business between domestic and foreign investors or between foreign investors themselves in Lao PDR or between foreign investors and the Government shall use domestic dispute resolution methods, or international methods based on the agreement of the parties.
PART XIII
MANAGEMENT AND INSPECTION
OF MINERAL ACTIVITIES
Chapter 1
Management of Mineral Activities
Article 117: (Revised) Mineral Activity Management Organization
The Government centrally and uniformly manages minerals activities nationwide and designates the Ministry of Energy and Mine to have direct responsibility and to act as a focal agency to coordinate with other relevant ministries and relevant local administrative authorities.
Mineral activities management organizations/authorities shall include
Article 118: (Revised) Rights and Duties of the Ministry of Energy and Mines
For the management of mineral activities, the Ministry of Energy and Mine has the following rights and duties:
Article 119: (Revised) Rights and Duties of the Provincial/City Level Departments of Energy and Mines
For the management of mineral activities, the Provincial/City Level Departments of Energy and Mine, under its responsibility, has the following rights and duties:
Article 120: (Revised) Rights and Duties of the District and Municipality Level Energy and Mines Office
For the management of mineral activities, the District and Municipality Energy and Mine Office, under its responsibility, has the following rights and duties:
Article 121: (New) Rights and Duties of the Natural Resources and Environment Sectors
For the management of mineral activities, the Natural Resources and Environment Sector, under its responsibility, has the following rights and duties:
Article 122: (Revised) Rights and Duties of other Sectors and Local Administrative Authorities
The other Sectors and Local Administrative Authorities shall have the rights and duties to coordinate with the Energy and Mine sectors for the management of mineral activities under its roles.
Chapter 2
Inspection of Mineral Activities
Article 123: (Revised) Inspection Organization of Mineral Activities
The Inspection Organization of Mineral Activity consists of internal and external Inspection Organizations.
The Internal Inspection Organization is the same organization as the Mineral Activity Management Organization as stated in Article 117 of this law.
The external Inspection Organization is the National Assembly, the Provincial People’s Council, every level of the State Inspection authority, the State Auditing Authority, the Lao Front for National Construction and public organizations under their roles defined in the laws.
Article 124: (Revised) Contents of the Inspection
An inspection of mineral activities has the following contents:
Article 125: (Revised) Mineral Activity Inspection Officers
Mineral activity Inspection officers have the principal rights and duties as follows:
Article 126: Inspection Forms
The inspection of mineral activities are three forms as follows:
Regular inspections are carried out at fixed intervals and must be performed at least twice per year.
Inspections with advance notice are inspections carried out, when deemed necessary, by sending advance notice to investors at least 24 hours before the inspection.
Impromptu inspections are the inspection carried out, when deemed necessary, in an urgent situation and without sending any advance notice to the investor.
The inspections could be carried out through both document check and on-site inspection.
PART XIV
AWARDS AND SANCTION
Article 127: Awards for Persons with Outstanding Performances
Individuals, legal entities or organizations with outstanding performance in the implementation of this law mainly in the management, protection of mineral resources and efficient mineral business operations and in compliance with the laws and regulations of the Lao PDR will receive awards and other policies in accordance with regulations.
Article 128: Sanction against Violators
Individuals, legal entities or organizations violating this law shall be subject to measures such as re-education, warning, disciplinary measures, fines, civil measures or penal prosecution in compliance with laws and regulations depending on the seriousness of the violation.
Article 129: Re-Education Measures
Individuals, legal entities or organizations violating this law in minor cases or for the first time, such as: failure to submit a mineral business report within the timeframe, working too slowly, not in accordance with the technical plan, carrying out artisanal mining activities without a permit which caused damages with the cost less than one million kips but has been reported in good faith, shall be re-educated and warned.
Article 130: Disciplinary Measures
A government official, mineral activity inspector who violates regulations and laws related to minerals and prohibition provisions that are not severe and cannot be constituted as a criminal offense and have cost damages with the cost less than one million kips, but have not reported in good faith, to escape from the offense shall be subject to the following disciplinary measures:
The persons who are put under disciplinary measures shall return all property illegally obtained to concerned organizations.
Article 131: Fines
Individuals, legal entities or organizations violating regulations and laws related to minerals and prohibitions provided in this law that does not constitute criminal offense and cause damages with a cost more than one million kips shall be fined at the amount of the damages to minerals, semi and final mineral products in accordance with the market prices.
If it is a second time violation or offense such as a serial offence, such person shall be fined double the cost of the damage to minerals, semi and final mineral products in accordance with the market prices.
Article 132: Civil Measures
Individuals, legal entities or organizations violating this Law which caused damages to another individuals concerning minerals activity must also recompense the damage which he/she has created.
Article 133: Penal Measures
A person or legal entity, who violates this Law which constitutes a penal offence such as: falsification of mining licenses, the destruction of a mineral deposits or sources, illegally mining, failure to apply technical safety and environmental measures causing death or injury, receiving bribes, abuse of power, forging various documents related with mineral activities, abusing their duty and obtaining personal gain from mining business operations, shall be punished as provided in the Penal Law depending on the seriousness of the violation, including to recompense the damage which he/she created.
Article 134: Additional Measures
Apart from the measures mentioned in Article 133 of this law, additional sanctions may be imposed on the offender such as: suspension of mining business operations, withdrawal of license, confiscation of the offender’s properties, vehicles and equipment by the State.
PART XV
FINAL PROVISIONS
Article 135: Implementation
The government of the Lao People's Democratic Republic shall implement this law.
Article 136: (Revised) Effectiveness
This law shall enter into force from the date of the promulgating decree issued by the
President of the Lao People's Democratic Republic and after releasing on the Official Gazette fifteen days.
This law repeals the Law on Minerals No. 02/NA, dated 20 December 2011.
Beneficial investors, developers and enterprises under previous Law on Minerals and previously contracted with the government shall be entitled to remain conditions and contents of concerned contracts until the expiration.
In the case that the beneficial investors, developers and enterprises by contract in the past wish to continue their activities in compliance with this revised Law have to propose to the concerned sectors within one hundred and twenty days from the date this law comes into force, after that the such concerned sectors shall inform the applicants of the implementation.
All regulations and provisions in conflict with this law are cancelled.
The President of the National Assembly
(Seal and signature)
Pany Yathotou