Guidelines for Detailed Resettlement Studies in Mining Projects (Ministry of Energy and Mines, 2014)

Article 1

GUIDELINE

The purpose of this Guideline is to provide comprehensive or practical guidance to the Department of Mines, a subsidiary agency of the Ministry of Energy and Mines. The Ministry of Energy and Mines shall issue this Guideline.

This Guideline will support the evaluation of the detailed feasibility study submitted by mining companies preparing for mining operations. In this regard, this Guideline will facilitate a comprehensive, transparent, and well-documented approval process. This Guideline defines the scope, level of detail, and effective timeframe for submission and approval.

Beyond the development of the Lao mining sector and the utilization of related natural resources, the sustainability of mining operations in terms of the country's economic development, environmental sustainability, and socio-economic aspects must be ensured for the benefit of mining operators, the Lao People's Democratic Republic, and the affected people. As a critical issue, any detailed feasibility study must be reviewed regarding its ability to generate benefits and value for all relevant parties.

The detailed feasibility study that is the subject of this Guideline broadly corresponds to the "Definitive Feasibility Study" or "Bankable Feasibility Study" used internationally.

Further detailed information on the preparation of the detailed feasibility study is compiled in the "Manual for the Preparation and Evaluation of Feasibility Studies for Mining Projects" (Ministry of Energy and Mines, 2012).

According to the Lao Mining Law, the Mining Law issued in December 2011 governs the approval process for mining projects.

According to the Mining Law (Article 42), it is the responsibility of the Ministry of Energy and Mines to evaluate and approve the detailed feasibility study, as well as the mining and mineral processing plans. In the event that such documents are accepted, the Ministry of Energy and Mines will propose the proposed mining project to the Government for consideration through the Ministry of Planning and Investment.

According to the Mining Law (Article 22), approval of the detailed feasibility study is a key condition before the issuance of the necessary mining and processing license for commencing mining activities. The Ministry of Energy and Mines or its subsidiary agency, the Department of Mines, is responsible for review and evaluation. Along with the detailed feasibility study, the applicant must submit a certificate of project financial support, an environmental certificate issued by the Ministry of Natural Resources and Environment, and other supporting documents such as plans and certificates for the use of land, timber, water, and materials within the mining development area.

The applicant must submit the detailed feasibility study to the Ministry of Energy and Mines or its subsidiary agency, the Department of Mines. The Department of Mines is then responsible for evaluating and communicating issues related to the approval of the mining project with the applicant.

The submitted detailed feasibility study must bear an authorized signature. The submitted detailed feasibility study must provide sufficient information about the mining project, as well as the sources of data used, so that the approving Department of Mines can verify the completeness and reasonableness of the information underlying the detailed feasibility study. To provide guidance to applicants, the minimum required scope of the detailed feasibility study is summarized in this Guideline.

The applicant must submit 1 digital copy and 2 printed copies of the detailed feasibility study, including supporting documents such as maps, drawings, flowcharts, tables, images, appendices, annexes, and others.