COECCO is exploiting plaster in Laos. — Photo courtesy of COECCO

The Lao Government and the Vietnam Company of Economic Cooperation (COECCO) on Thursday signed a contract for exploitation and processing of iron ore.

The agreement was signed at the headquarters of the Lao Ministry of Planning and Investment in Vientiane.

The 640ha project has investment capital of more than US$29 million. The total period of exploitation is 24 years.

Attending the signing ceremony were Lao representatives from the ministries of planning and investment, finance, energy and mines, and natural resources and environment; Vietnamese Ambassador to Laos Nguyen Thanh Tung, Chairman of COECCO Nguyen Chinh Nghia and representatives of relevant agencies of the two countries.

Speaking at the ceremony, Nghia said the project, which would be implemented in Xaysomboun Province, could bring significant revenue to the Laos State budget, contributing to the socio-economic development of Xaysomboun Province in particular and Laos in general.

He thanked the Lao Government for facilitating the company during the ore exploration period and pledged to carry out exploitation and processing effectively under Laos’ environmental protection law, contributing to the country’s implementation of economic strategy effectively toward green and sustainable development.

Deputy Minister of Planning and Investment Khamlien Phonsena said the project would help strengthen the special solidarity and comprehensive co-operation between the two governments of Laos and Viet Nam, sealed during "Viet Nam-Laos Solidarity and Friendship Year 2017", which will witness many events commemorating ties between the two countries, such as 40 years of the signing day of the Treaty of Friendship and Co-operation and 55 years of the establishment of diplomatic relations between the two nations. — VNS