Sepon Provides Comprehensive Support for Local Community Development

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Project Overview

Since commencing operations in 2003, Sepon has contributed over USD 1.6 billion in direct revenue to the Government of Laos via taxes, royalties and dividends. Meanwhile, indirect benefits brought to the socio-economic development of Laos through employment provision, training programmes and local business initiatives have amounted to hundreds of millions of US dollars.

Establish a community trust fund

Through the Community Development Fund, more than 40,000 people across 72 villages surrounding the mining area have secured the right to identify and implement their development priorities, gaining improved basic services and tangible betterment of living conditions. Cumulative funding exceeding USD 13 million has supported 583 projects, including constructing schools, hospitals and clinics, procuring medical supplies, improving sanitation and water supply infrastructure, building roads and latrines, and boosting agricultural production via irrigation development initiatives.

Establish a Vulnerable Groups Assistance Fund

The Vulnerable Groups Assistance Fund aims to improve the standard of basic services in local communities. Through participatory programmes, local villagers are empowered to select, implement and take ownership of livelihood projects.
To date, the fund has invested over USD 3.2 million, benefiting 47 communities near Sepon.

Promote local business development

The LXML Business Development Programme is designed to deliver diversified sources of income for local residents, create a favourable environment for the flourishing of new enterprises, and support local communities in maintaining sustainable livelihoods after mine closure. LXML has procured goods and materials worth USD 6 million from 48 local enterprises (approximately 75% of the local output of fruits, vegetables and other products). It has disbursed a total of more than USD 47 million and generated over 500 employment opportunities for local people.

Support the conservation of cultural heritage

LXML provides substantial support for the conservation of local historical sites and cultural relics in Laos through a special collaborative project with the Heritage Department of the Ministry of Information, Culture and Tourism of Laos, the National University of Laos and James Cook University, Australia.

The project team has unearthed cultural relics and historic sites in and around the Sepon Mining Area. The most recent discovery is presumed to be traces of human activity dating back more than 3,000 years, evidencing ancient mining activities in this region.

Since 2003, LXML has invested a cumulative sum of over USD 1.5 million in national archaeological research and cultural heritage conservation in Laos.

Clear unexploded ordnance

Conducting mining operations on former battlefields poses significant challenges. Vilabouly is among the most heavily bombed areas of Laos during the war, and Sepon lies at an intersection of the so-called Ho Chi Minh Trail. Therefore, the clearance of unexploded ordnance (UXO) constitutes an important component of mining operations at Sepon. 

Through strengthened cooperation with the Government of Laos, LXML has upgraded technical capabilities and optimized UXO clearance methodologies, effectively safeguarding site safety as well as protecting local residents and future generations. Land cleared of ordnance is converted for agricultural production. 

- Over USD 54 million invested in unexploded ordnance clearance 

- More than 5,700 hectares of land cleared 

- Over 58,500 items of unexploded ordnance destroyed