Member Country Report of LAO PDR

Transcription

1 CCOP-48AS/3-9 COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) 48 th CCOP Annual Session 4-8 November 2012 Langkawi, Malaysia Member Country Report of LAO PDR Submitted by Khampha Phommakaysone Inpong Homsombath Department of Geology and Minerals (DGM) Ministry of Natural Resources and Environment (For Agenda Item 3)

2 COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) CCOP Building, 75/10 Rama VI Road, Phayathai, Ratchathewi, Bangkok 10400, Thailand Tel: +66 (0) , Fax: +66 (0) , Website: ANNUAL MEMBER COUNTRY REPORT Country: LAO PDR Period: 1 July June 2012 GEO-RESOURCES SECTOR 1. MINERAL PROGRAMME 1.1. Summary Despite Lao PDR being a small country, the minerals sector is important to the Lao economy, accounting for about 50 % of the exports and 10 % of the state revenues. There are over 500 known mineral occurrences, which are distributed throughout different parts of its territory. These include gold (porphyry, epithermal, skarn, sediment hosted & placer types), copper (porphyry, supergene, skarn, epithermal & others), Copper-nickel (magmatic type), lead-zinc (skarn, VHMS, VMT types), gemstones (sapphire), tin (greisens-hydrothermal & residual), aluminum (laterite bauxite) and, iron. Amongst the hydrothermal deposit types, metallic mineral resources are found within three fold belts (the Sukhothai fold belt; Louei- Louangprabang fold belt; and Phou Luang Indochinese fold belt) whilst evaporites are present in the basins. Some prospective mineral occurrences are under exploration for evaluating reserves and some have been brought in to exploitation for local production and export. Exported mineral commodities include gold, copper, tin, lead, zinc, gypsum, coal, and industrial minerals and construction materials. The minerals sector is important for Lao economic growth as it accounted for 8 % of GDP in In order to promote sustainable mineral development, Laos has just revised its Law on Minerals and is drafting the Implementing Decree of Mineral Law and other related regulations. In August 2011, the Department of Geology was renamed as Department of Geology and Minerals (DGM) and transferred to the newly established Ministry of Natural Resources and Environment (MONRE). As part of the new administrative structure, DGM is now responsible for the processing of prospecting and exploration licenses and granting the prefeasibility permits, these being duties that previously belonged to the Department of Mines (DOM) Review of Technical Programmes / Activities In the period from July 2010 to September 2012, the Department of Geology and Minerals (DGM) has implemented two mineral prospecting and exploration projects and some other activities in regional surveys for mineral resources. Geological and mineral mapping at different scales have been funded by the national budget and assisted by foreign countries and international organizations. Geological and mineral mapping at 1:200,000 scale currently covers only 54.86% of the country area (236,800 km 2 ) but is expected to be completed by the year CCOP Member Country Report: LAO PDR 1

3 Mineral investigation projects were carried out in some districts of Vientiane province and some mineral occurrences including gold were found in Nam La upstream areas and copper in the Namthong area. A Project on mineral prospecting and exploration in Xieng Khuang province (815 km2) began in A project on Mineral Prospecting and Exploration in Saravan, Xekong and Attapu Provinces has found some potential bauxite resources in the Bolaven and Sanxay plateaux within weathering alkaline basalt. During cooperation activity in regional survey for mineral resources in the some areas of Bolikhamxai and Xiengkhuang provinces have been conducted with JMEC (Japan Mining Engineering Center for International Cooperation). The results of this show some geochemical anomalies in stream sediment sample (Au>0.5 ppm) in Thabok NE, Ban Phadai Ban Hatkhipheung and Ban Muang Mo North Sub areas. Other anomalies detected include: Hf (11.9ppm), La (770 ppm), Th (520 ppm), W (136 ppm), Y (183 ppm) and Zr (275 ppm) in Ban Muang Mo North Sub area. The cooperation project with SUMITOMO company is to study the North East part of Khamkeut District. Studies in stratigraphic correlation and geotourism in Mukdahan (Thailand) - Savannakhet province (Lao PDR) were undertaken in cooperation with the Department of Mineral Resources (DMR) of Thailand. A project on 1:200,000 geological and mineral mapping in South Luang Prabang was approved by the Vietnamese government and will start by beginning In addition approximately 219 companies (339 projects) invest in the mineral sector Production of Mineral Commodities. Laos became a gold - copper producer in 2003 when the Sepon mine started mining operations by Lane Xang Mineral Co Ltd. At present, besides Sepon mine, Pan Australian Resources is operating in gold-copper production and more than 50 domestic and foreign companies are exploiting deposits for gold (Au), copper (Cu), tin, coal, lead-zinc and other minerals on a small and medium scale. Production of minerals is summarized in Table 1. Commodity Unite Remark Copper metal T 62,612 63,540 67,571 62,448 Copper concentrates (25%) T 4, ,659 25, ,733 Gold + silver dore T Zinc Concentrate (45%) T 2,350 2,950 2,000 10,000 Tin concentrate (60%) T 1, Gypsum T 232, , , ,489 Coal T 681, , , ,035 Table: Mineral production from 2007 to CCOP Member Country Report: LAO PDR

4 1.4. Proposed Future Activities Promote geological and mineral investigation and exploration in order to have adequate data for evaluating the potential of Lao mineral resources and to formulate short-term and long-term development plans for the mineral sector and to attract local and foreign investment in the mining sector; Continue the implementation of the project on mineral prospecting and exploration in some areas of Attapu, Xekong, Saravan and Xieng Khuang provinces. Undertake geological and mineral mapping at 1:200,000 scale in South Luang Prabang (15,519 sq km) in cooperation with the Department of Geological and Mineral Resources of Vietnam ( ). Continue the study on stratigraphic correlation and geotourism with the Department of Mineral Resources (DMR) of Thailand. Conduct the project on geological and geochemical mapping at 1:200,000 scale covering 16,309 square kilometer in Xaiynabouly province supported by the Chinese Government. Fig.2: 1: geological mapping coverage CCOP Member Country Report: LAO PDR 3

5 1.5. Assistance Required from CCOP / Other Member Countries in Support of Future activities The DGM is continuing to seek aid from foreign countries and international organizations regarding the following needs: - Strengthening the capacity for geological mapping and mineral resources assessment in Lao PDR using new methods and techniques including mathematical methods in geology; modeling of mineral deposits using GIS; remote sensing; financial project modeling, risk and market analysis; geochemical data processing; assessment of mineral resources using 3D methods; chemical and petrographic analysis. - Scholarships for MSc and PhD degree studies for DGM staff in the field of geosciences. - Upgrading the mineral and geochemical analysis capability of DGM laboratory, particularly Rare Earth Elements analysis. - Participation in international symposia, conferences and seminars 2. ENERGY PROGRAMME Despite the discovery of large oil and gas fields in the neighboring countries of Cambodia, Thailand, and Vietnam, until recently the oil industry has not regarded Lao PDR as a particularly attractive country in which to explore for hydrocarbons. As a result, the current potential for finding oil and gas fields is limited to the low-lying terrain in the areas around the Vientiane and Savannakhet basins. DGM has currently no Energy Programme activity. There were 2 companies exploring for oil and gas (Salamender Energy Co. and Petro Vietnam Co.Ltd.), but as from 2011 only one company (Petro Vietnam Co Ltd ) is exploring for oil and gas in the southern Champasack province (14,140 ha). 3. GROUNDWATER PROGRAMME 3.1. Summary Groundwater investigation has mostly been undertaken as part of the 1: scale geological and mineral mapping by DGM in cooperation with foreign geological institutions. In 2011, the Water Resources and Environment Agency (WREA) conducted a study on groundwater resources assessment Assistance Required from CCOP in Support of Future Activities. - Training and study tour in groundwater resources management. Programme Contact Person: Name: Sounthone Laolo Position: Deputy Director of Geological Division Department of Geology and Minerals Ministry of Natural Resources and Environment 4 CCOP Member Country Report: LAO PDR

6 4. COASTAL ZONE PROGRAMME GEO-ENVIRONMENT SECTOR As Lao PDR is a land-locked country there is no activity in this CCOP Programme area 5. GEO-HAZARDS PROGRAMME Summary. Lao P.D.R. is only slightly affected from by impacts of earthquakes. Nevertheless, even though earthquake epicenters may be distant, some earthquakes can be felt in the country, especially in the northern provinces, but the magnitude is not high and damage to buildings or to human life is not severe. Lao P.D.R. has no seismological stations for earthquake monitoring. In the past, no institution was responsible for this matter so in 1997 the responsibility of seismological observation and monitoring was mentioned in the new role and functions of the Department of Meteorology and Hydrology. However, in this field until now, there is no station, no observations or data and no seismology technicians or scientists. In the future, one or two seismic stations should be installed, particularly in the northern part of Laos. Also, seismological training should be undertaken and international and regional cooperation should be established. However, geo-hazards such as landslides, mudslides and flash floods occur in many provinces of Lao PDR causing increasing amounts of damage to both property and people. DGM and DOM, responsible for geological hazard management, have planned to select prototype areas for sustainable rehabilitation in 3 zones (Northern zone: Luangnamtha province; Middle zone: Vientiane province, Borikhamxay province; Southern zone: Champasak province, Attapeu province). The main activities will comprise detailed geological mapping at scale of 1:4,000, adjusting the existing streams and establishing rehabilitation planning with the local communities Future Plan Activities and Technical Programme. - Active Fault study: The major goal of DGM s study in is to delineate the characteristics of faults in Xayaboury Province and to define the means for earthquake mitigation for several communities affected by the fault groups in the Xayaboury Province by compiling active fault maps. - Landslides, mudslides and flash floods investigation: Geological investigation by DGM and DOM will be conducted in landslide, mudslide and flash flood risk areas to collect geological data and assess hazards and vulnerable areas of Northern zone: Luangnamtha province, Luangphrabang province. CCOP Member Country Report: LAO PDR 5

7 5.3. Assistance Required from CCOP in Support of Future Activities. - Active fault study - Landslides, mudslides and flash floods investigation Programme Contact Person: Name: Soukhansak Sisouk Position: Director of Environmental and Mining Inspection Division Department of Mines Ministry of Energy and Mines 6. ENVIRONMENTAL GEOLOGY PROGRAMME 6.1. Summary DOM in cooperation with the Department of Environment collected and analysed surface water samples and residual soil samples in some mining areas Proposed Future Activities and Assistance from CCOP Assessment of contamination from mining operations in some selected areas. GEO-INFORMATION SECTOR 7. GEO-DATA AND INFORMATION MANAGEMENT PROGRAMME 7.1. Summary. A variety of databases are now being constructed in government and international organizations in Lao PDR, including a database for the Mekong River by MRC, a fundamental geographical information and infrastructural database by NGD, a forestry, soil, and land-use distribution database by MAF, and an electric power supply database by MEM, These datasets can be used as fundamental surrounding information for a future Geo-science database in the DGM, which would provide an information backbone for mineral resources in this country. New topographical maps at 1: scale are under preparation for the major part of country at the National Geographical Department in a USD 5 million Finnish funded SNGS project. Geo-database information in DGM has been used to create and manage mineral resource maps, such as the 1:1,000,000 geological map produced by BGS, a mineral resource map produced by an ESCAP project, and two parts of southern and middle Laos on 1:200,000 geological maps completed by INTERGEO (Vietnam) and also some mining concession distribution maps amongst others. However, these datasets are insufficient for a fundamental database for geological and mineral resources because of database management issues, such as incomplete data, data errors, and mixing of data types. Under the Finnish funded LAOFIMIN, available geodatasets (partly digitized) have been unified into geographically uniform and easy-to-use ArcGIS file geodatabase format including topographical base data (originating from NGD), existing geological maps (at 1:1M, 1: and 1: and 1: scale), complemented with mineral databases and concession areas. 6 CCOP Member Country Report: LAO PDR

8 7.2. Annual Review of Individual Technical Activities Lao-Finnish Mineral Institutional (LAOFIMIN) Project (Sep2009-Nov 2011) The Lao-Finnish Mineral Institutional Mineral Institutional Project was composed of 4 components: - Geo-information and data management - Training in GIS-aided geological mapping - Mine closure procedure - Promotion in mineral investment The results achieved by activities and implementation of the LAOFIMIN project, in particular the first and second components conducted by DGM and Geologial Survey of Finland (GTK), are as follows: - Available spatial geodatasets have been compiled into a geographically uniform and easy to use Lao Geodatabase corporate database - Selected staff members have the necessary technical means and capacities to use the ArcGIS programme efficiently to add, modify and store geodata, and produce desired integrated maps to support the fact-based decision making processes at MEM and to guide the scientific or practical goals of its departments Proposed Future activities - Participating with other member countries in CCOP Metadata Project Phase II - Basic design and large quantity of collected data, ranging from infrastructure to geographic information for future geo-science GIS database will be used for the fundamental construction of the database and will be supplied for exploration activities. - Geological Information Development Plan for the Lao PDR is supposed to create geological maps with the scale from 1:200,000 to 1:10,000 and to revise the country s geological maps. The project might be coordinated with the Geo-science GIS database in this study to create a GIS database and install it into DGEM. - Construction of database for processed satellite imagery data Assistance Required from CCOP in Support of Future Activities - Technical Training for DGM Staff in construction and maintenance of future geoscience GIS databases in order to improve their database and GIS skills. - Assistance in construction of database for processed satellite imagery data Programme Contact Person: Name: Inpong Homsombat Position: Director of Geo-information Division Department of Geology Ministry of Natural Resources and Environment CCOP Member Country Report: LAO PDR 7