LXML Sepon Environmental and Social Impact Assessment for Primary Goal Project (Regal review and consultation).

 

Client

Lane Xang Minerals Limited

A Subsidiary of Chifeng Jilong Gold Mining Co., Ltd

 

Location

Vilaboury District, Savannakhet Province

 

Project Duration

February 2019 – May 2021

 

Background

Lane Xang Minerals Limited (LXML) is proposing to recommence and expand gold mining and processing at the Sepon Mine site in Vilabouly District, Savannakhet Province, Lao PDR (Figure I).LXML is the registered name of the company which operates the Sepon Mine, in which Chifeng Gold own a 90% interest and the Government of the Lao PDR (GoL) owns 10%.LXML has been operating the Sepon Project since initial approval was granted by the GoL in 2002.

 

The Mineral Exploration and Production Agreement (MEPA) was signed in 1993 and covers an area of 1,250km2 in Vilabouly District, Savannakhet Province.The Greater Project Development Area (GPDA) lies within the MEPA and was characterized in an ESIA approved by the GoL in 2006 (as part of the approval for the Western Tailings Storage Facility WTSF).The GPDA, in which the Project is situated, lies in a lowland area between the Annamite Ranges to the east and the sandstone range of the Phou Xang He to the south and south west.Elevation within the GPDA ranges from 200m to 700m above sea level.The region is within the Mekong River catchment, with the major river of the area being the Nam Kok, which flows into the Xe Bang Hiang; a significant tributary of the Mekong.

 

Based on the current mine plan, Sepon’s copper production will finish towards the end of 2020, with transition to the gold operations expected to extend the Sepon mine life to 2028.The gold plant is designed to treat 2.5Mtpa of gold ore (both primary – 1.5Mtpa and oxide – 1.0Mtpa). Any shortfall in primary ore will be made up with oxide ore.

 

Services Provided

ESL conducted the services as following:

• Summary of environmental and Social policies of LXML generally and Sepon Mine Specifically.
• Presentation of laws, regulation, guidelines, etc. of Lao PDR that are applicable to the Primary Gold Project and the ESIA study, noting the particular provisions that will be taken into account during project preparation and implementation. Relevant administrative requirements and key agencies or Ministries involved in the ESIA review will be note.
• Presentation of the list of international conventions, treaties and agreements that Lao PDR is signatory to and that are potentially relevant to the Primary Gold Project, including a summary of the main elements considered during Project planning and implementation.
• Discussion of the jurisdiction involved in the Project and the cooperation mechanisms that will be put in place to ensure the success of the ESIA and the implementation of its results. Presentation of an organizations involved in the review of the Project ESIA.  The main responsibilities of each organization during the preparation, review, approval and implementation of the ESIA Report will be summarized.
• Presentation of Lao National Standards and other international standards (e.g., WHO, IFC, EU, etc.) relevant to the Primary Gold Project.
• Presentation of standards selected for each parameter.
• Presentation of elected environmental, economic, social and health standards and guidelines.
• Describes public consultation activities that have taken place up to the time the ESIA is submitted to MONRE. Describes planned efforts to meeting with key stakeholders and the affected population, and how this will be done (disclosure, numbers of meetings, types of meetings, means of information disclosure, how the opinions and comments of the key stakeholders and the affected populations will be integrated).  Suggest mechanisms to address complaints and grievance issues, if possible.