Chinese firm flees after it is caught mining illegally

The firm had received permission from the Lao government to excavate sand and gravel, but was found to be using the equipment to dredge for gold illegally, the Minister of Energy and Mines Soulivong Daravong told a press conference on Friday. The press conference at the National Assembly (NA), which was convened in response to issues raised by the public.

A resident of Paktha district, where the Chinese firm carried out the illegal extraction, raised the issue expressing concern over potential environmental impacts. He accused the company of using chemical substances to extract gold, a practice that can be very damaging to the environment.

The resident also claimed that the company had threatened to imprison those who entered or came close to the mineral extraction area.

Soulivong said provincial authorities had learnt about the firm’s illegal operations and instructed the management to cease any activities for which it didn’t have permission. The provincial Public Works and Transport Department issued a notice instructing the firm to stop the extraction and restore the area to its original condition.

“After learning about this [the warning], the firm feared that the government would fine them so they escaped back to their country,” he told the press. 

Local villagers and contractors of the Chinese firm seized any equipment left at the site in order to recover debts the firm owed to them, according to the minister.

Illegal and unregulated small-scale extraction of minerals, notably gold, has been triggering environmental concerns after having been reported on numerous occasions over the past few years. A recent report also suggested that there is currently illegal mineral extraction being carried out in Paek district of northern Xieng Khuang province, which the government has pledged to address.

Soulivong admitted that illegal mineral extractions had been uncovered in the province from time to time and despite the government taking action to address the issue, it was still an ongoing problem.

Officials from the Energy and Mines Ministry said it was common practice for local people to extract minerals such as gold from rivers using cyanide without proper knowledge of how to use it safely. Many investors who were granted permission to excavate sand and rocks along the rivers for construction purposes were reported to be illegally extracting minerals instead.