Laos remains opportunity for miner PanAust: managing director

Chinese-Australian miner PanAust is continuing to extract healthy margins from its majority-held Phu Bia copper operations in Laos despite low global commodity prices and remains keen to explore opportunities in the country when the country's self-imposed moratorium on new ventures is lifted.

These were messages PanAust Managing Director Fred Hess delivered to an audience including the nation's Minister of Planning and Investment Somdy Douangdy in the Laos' capital Vientiane Thursday.

Phu Bia's twin Phu Kham copper-gold and Ban Houayxai gold- silver operations are among the country's major mineral producers alongside Chinese-Australian majority held MMG Lane Xang Minerals Limited's (LXML) Sepon.

The government of Laos is a 10 percent equity holder in both Phu Bia and MMG LXML.

"PanAust is in great shape. We are at a strong financial position at low point in price cycle with our growth pipeline on track," Hess said.

He hailed the contribution of the company's Lao operations for the contribution to local communities and the nation's balance sheet alike, making mention of positive developments in terms of prosperity and security in the Lao province of Xaysomboun where the company's operations are located.

He encouraged the nation's policymakers to prepare for a cyclical rebound in commodity prices by opening up other promising tenements which would allow the company to continue to utilize the experience and skills of its 3,000-strong primarily local workforce.

Laos imposed a 4-year moratorium on new mining licenses in 2012 which is due to expire next year.

Elsewhere, the company is moving forward towards development of the 80 percent-held Frieda River copper deposit in Papua New Guinea, which Hess described as among the world's top 10 and one of the most likely to proceed towards production in the near term. Endi