How to Calculate Mineral Resource Fees (Royalties) for Mining in Laos? A List of Rates by Mineral Type

在老挝开矿，矿产资源费（权利金）怎么算？各矿种费率一览

ການຂຸດຄົ້ນບໍ່ແຮ່ໃນລາວ: ຄ່າລິຂະສິດຊັບພະຍາກອນແຮ່ທາດຄິດໄລ່ແນວໃດ? ອັດຕາຄ່າລິຂະສິດຕາມແຕ່ລະປະເພດແຮ່

Published: 2026-07-06 · LaoPaniti legal guides

"I have my eye on a gold mine in Laos, and the preliminary exploration is done. But I heard I need to pay a 'royalty'—how much will it be? Will it eat up all my profits?" This is a common question from Chinese investors planning to invest in mining in Laos.

Simply put, the mineral resource fee (royalty) is a fee paid to the government based on a certain percentage of sales revenue after mining minerals from the ground in Laos. This fee cannot be deducted from costs; it is calculated directly based on the revenue from selling the minerals. Below, according to the Law on Natural Resources Royalty Rates of Laos (effective from January 1, 2024), we will clearly explain the rates for common minerals.

I. List of Rates by Mineral Type

Gemstones (diamond, ruby, sapphire, emerald): 15%
Semi-precious stones: 10%
Precious metals (silver, gold, platinum): 12% — This is the rate most relevant to gold mine investors.
Base metals (copper, lead, tin, zinc, aluminum): 9%
Iron: 10%
Rare earth minerals: 20% — The highest rate category.
Construction minerals (black soil/red soil/clay, sand, ore/gravel, rock): 4%

Note: The above rates apply to newly signed or renewed mining rights contracts. If you have already signed a concession contract, the final terms, including the rate, obligations, and time limit, will be as stipulated in that contract. In practice, the terms of contracts between the Lao government and investors may vary slightly; it is recommended to rely on the contract.

II. Calculation Method and Considerations

The mineral resource fee is calculated based on the sales revenue of mineral products, with the price benchmark being international, regional, or domestic market prices, and no deductions are allowed. That is, whatever amount you receive from selling the minerals, you multiply that amount by the rate to pay the fee; costs such as transportation and processing cannot be deducted.

Additionally, if natural water is used during mining, a separate fee for natural water resources must be paid according to the Law on Natural Resources Royalty Rates.

III. Transition from Historical Contracts to the New Law

The Law on Natural Resources Royalty Rates came into effect on January 1, 2024, replacing the 2015 Presidential Order No. 001. If you are a new investor, you directly apply the new law's rates; if you have an existing contract, it is advisable to consult a professional to determine if adjustments are needed.

For a deeper understanding of other aspects of mining investment, you can read our previous article "Foreign Investment in Gold Mining in Laos: A Full Process from Company Establishment to Mining Permit" (https://www.123laoai.com/guide/29), which explains the entire process from company registration to obtaining a mining license.

IV. Practical Advice for You

Before entering, be sure to calculate carefully: multiply the estimated annual sales revenue by the rate to determine the annual royalty expenditure, and then combine it with other taxes (such as Profit Tax, Value Added Tax (VAT)) for overall financial projections.
Scrutinize the contract terms: especially the rate, calculation method, and payment cycle, as these directly affect your cash flow.
Rates may be adjusted: the Lao Official Gazette and relevant authorities will publish the latest regulations; it is recommended to monitor them regularly.

If you have other questions about mining taxes or want to quickly check the specific rate for a certain mineral, you can directly use LaoPaniti's free AI consultation tool (https://www.123laoai.com) to get preliminary answers by entering your question. Additionally, LaoPaniti offers contract review and trademark search services to help you avoid legal risks in your investment.

FAQ

Is the royalty rate for gold mines fixed at 12%?

According to the Law on Natural Resources Royalty Rates, the rate for precious metals (including gold) is 12%. However, if you have already signed a concession contract with the government, the rate stipulated in the contract shall prevail. It is recommended to rely on the contract terms as the final basis.

Is the mineral resource fee calculated based on sales revenue or profit?

It is calculated based on sales revenue, and no deductions are allowed. The price benchmark is international, regional, or domestic market prices.

What is the rate for construction minerals?

The rate for construction minerals (black soil/red soil/clay, sand, ore/gravel, rock) is 4%.

Legal basis

《自然资源费率法》第相关条款条

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