The Lao Government is set to ban all raw mineral exports by 2030 to enforce domestic processing, capture higher resource margins, and build a self-reliant economy, Asia News Network reports.
Speaking at the National Assembly on 7 October, Industry and Commerce Minister Malaithong Kommasith said the government previously prioritised raw ore sales to generate rapid revenue during economic hardship, which left the full potential of the country’s mineral wealth unexploited.
“In the past it was our policy to promote mineral processing to add value. In practice, however, the mineral industry tended to focus mainly on the export of raw materials to generate revenue to ease economic and financial difficulties,” Kommasith said.
“This meant we were not using our resources to their full potential.”
To execute the shift, the state is drafting a Prime Minister’s directive prohibiting raw ore exports from new mining projects and mandating on-site processing facilities.
Under the draft framework, new rare earth project approvals have been frozen, and firm 2030 deadlines have been established to phase out raw exports of gypsum, barite, antimony, cobalt, tungsten, and nickel.
Companies extracting gold, copper, bauxite, and potash will also be legally required to integrate operations with domestic smelters or processing plants.
Meanwhile, existing operations face heightened regulatory scrutiny, with a ministry roadmap due by the end of 2026 to curb raw shipments.
A comprehensive revision of the Minerals Law will also be submitted to the National Assembly early next year.
Despite structural hurdles — including high transport costs, fragmented supply chains, power grid constraints, potential investor lawsuits, and risks of sudden revenue shortfalls — the policy has already reportedly spurred downstream industrial investments.
The Asia Potash Industrial Park in Khammuan province attracted over US$730 million ($1.05 billion) in investment over the past year across 14 factories, generating over US$120 million in exports between January and August 2026.
Tax revenues from the associated potash mining project are projected to rise from US$93 million in 2025 to over US$100 million during the first nine months of 2026.
Chinese industrial groups have also expressed interest in establishing domestic bauxite-to-alumina processing facilities.
To stem revenue leakage and curb illegal mining, the ministry is introducing stricter investor screening. Weak-rated companies will be barred from project tenders, nominee ownership will be prohibited, ultimate beneficial ownership must be disclosed, and real-time mine-gate weighing systems will be integrated into state tax systems.
Savannakhet province National Assembly member Akhom Praseuth backed the tighter oversight.
“The benefits of mineral extraction should not be measured by the amount of ore extracted, but should be assessed by the revenue that goes to the state, the benefits people receive, and the preservation of natural resources for the next generation,” Praseuth pointed out.
Write to Paula Fabe at Mining.com.au
Main image: The Vientiane Times
