A guide to leading practice sustainable development in mining

LOCATION: Vilabouly District, Savannakhet Province, Laos
BRIEF DESCRIPTION: Sepon open pit gold and copper mine
AREA OF LEADING PRACTICE: Community Engagement
HANDBOOK(S) REFERENCE: Community Engagement
DESCRIPTION OF INNOVATION:
A range of community and government engagement processes implemented
at the Sepon Project in Laos (Lao Peoples Democratic Republic [PDR]) since
commencement has ensured that effective communication channels were
in place to enable continuous change in the project scope. These changes
included the mining of copper as well as gold, the ongoing expansions of both
copper and gold resources, the addition of a second tailing storage facility
and the construction of a large permanent accommodation camp. These
mechanisms have enabled an initially small mining company the ability to
continuously explore and develop while maintaining the social licence in a
remote country with no previous history of engagement with multinational
mining companies.
Background
Minerals and Metals Group (MMG) and the Government of Lao PDR (GoL)
own 90 per cent and 10 per cent respectively of Lane Xang Minerals Limited
(LXML). LXML has been operating the Sepon Project in Vilabouly District of
Savannakhet, Lao PDR, since initial gold mining approval was granted by the
Lao PDR Government in 2002. The Sepon Project currently consists of the
open pit mining and processing of oxide gold ore; the mining and processing
of various types of copper ore and the mining of limestone to support copper
processing.
Government and Community Engagement
A Steering Committee was established by GoL and the Sepon Project team in
2002 to oversee the construction and operations of the Sepon Project. The
committee continues to meet regularly (3-4 times per year) both at site and
in the capital city of Vientiane, and is attended by representatives of all the
Ministries and Government Departments who are responsible for the various
aspects of the project. The Sepon Project representatives provide updates on
financial, technical, environmental and community aspects of the operation.
Questions are raised by both parties and often vigorous debate ensues.
Similarly, a committee consisting of local village and government leaders
was established during initial project construction. This committee usually
meets monthly and is attended by senior representatives from all directly
affected villages and the Sepon Project, including the site General Manager.
Matters which are of concern to both the local community and the project are
discussed and resolved, these include managing in-migration, ongoing access
to land and controlling theft.
A GUIDE TO LEADING PRACTICE SUSTAINABLE DEVELOPMENT IN MINING 15