Laos and coal

In March 2012 the government of Laos gave the green light to a Thai company to conduct coal prospecting and exploration on an area of 36.7 square kilometres in Nakheng and Namon villages in Feuang district, Vientiane province. It was reported that the demand for coal is on the rise in Laos, but could stabilize at around 500,000 tonnes per year between now and 2015, before exceeding one million tonnes per year beyond 2015, according to former Secretary General of the Lao Cement Producer Group Mr Inpone Phananoulack.

According to a report from the Ministry of Planning and Investment, the government approved US$3.1 billion worth of investment in the mining sector from 2000 to 2010.

Background
As of 2012 the Laos government had plans to build several dams and coal-fired power plants with the intention to sell it to their Asian neighbors. The construction of coal-fired power plants has become a controversial issue in Laos. The government approved plans to construct a coal-fired power plant in the Hongsa District of Sayabouli Province. Laos was not a significant producer of coal until the mid-1990s.

Proposed Coal-Fired Power Plants

 * Hongsa power station is being developed by Hongsa Power Company, a consortium comprising the Thai company Ratchaburi Electricity Generating Holding Public Company (RATCH), Banpu Power (a susbidiary of the the Thai coal-mining company Banpu) (BPP) and Lao Holding State Enterprise (LHSE). RATCH and BPP each have a 40% stake in the project and LHSE 20%.

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