I. Overview of mining resources in Laos

1. Geographical topography and regional geology of Laos

Laos is located in the southern and eastern sections of the Tethys Mountainous Area, which can be divided into four stratigraphic areas: Hui Sun, Mengsai, Sichuan Khouang-Pakse, and Shisong Zao Zai Mountain. It is mainly in the Mesozoic and Upper Paleozoic realms, followed by the Lower Paleozoic and Neozoic realms, and the Proterozoic is less. Moderate and deep metamorphism has occurred in the Paleoproterozoic, and the neoproterozoic and some lower Paleozoic have shallow metamorphosis. The open strata mainly include Proterozoic advanced metamorphic gneiss and schist interclase plagioamphibolite; Paleozoic metamorphosic marine volcanic sedimentary rock system and a small amount of schist, sandstone, mudstone, limestone, etc.; Mesozoic sandstone, clay, mudstone, limestone; Cenozoic conglomerate, sandstone, shale, siltstone and a small amount of basaltic lava, volcanic ash, lignite seams, etc. Among them, the Proterozoic strata are scattered in the east, and the Paleozoic and Mesozoic are distributed in most of Laos. Laos has three fold belts: northwest, north, central and south. The northwestern-north-east-oriented Indochinese fold belt is mainly composed of Devonian-Triassic, the north-central northwest-north-north-west-Heixian fold belt is mainly composed of Ordovician-Carboniferous, and the southern-north-westbound Indochinese fold belt is mainly composed of Mesozoic terrestrial sedimentary rocks with weak deformation. The fault zone of Laos is developed, mainly including three groups of deep faults and their secondary faults: north-east, north-east, and north-west

In terms of mineralization, the Carboniferous, Middle Permian, Upper Triassic and Neogene mainly contain coal; Carboniferous and Permian are mainly composed of carbonate and are the main cement raw material components in Laos; The reserves of potassium salt and gypsum in Paleogene strata were relatively objective. The fourth series of mafic volcanic rocks are sapphire-bearing host rocks.

2. Regional tectonics and metallogenic background of Laos

Laos is located in the south-east section of the Tethys orogenic mountain, is the southwest of China's three rivers Tethys tectonic area and South China Caledonian fold belt to the south or south west extension, but also the two major tectonic belts intersect the zone, constitute Laos' unique left oblique "T" shaped tectonic pattern, the large and medium-sized gold deposits found are distributed in the Truong Son metallogenic belt and Luang Prabang-Loei metallogenic belt, these two metallogenic belts are the most important gold and polymetallic metallogenic belts in Laos.

The Truong Son Metallogenic Belt is the most important copper-gold-iron-tin polymetallic ore metallogenic belt in Laos, which runs from Sichuan Khouang in the north, through the Beishan, Thaqu and Sai Phun areas in the southeast, and extends to the Danang Metallogenic Belt in Vietnam, which is held hostage by the Truong Son - Da Nang fault and the Blue River fault, occupying the Truong Son microplate.

The outcropping strata in the metallogenic belt are mainly Silurian Cambrian mudstone sandstone and limestone, Devonian-Silurian mudstone, basalt sandstone, sandclastic rock, Permian-Carboniferous limestone, sandstone, siltstone, mudstone, Triassic-Jurassic sandclastic interspersed with thin-bed coal and conglomerate.

The metallogenic belt is an extension of the Caledonian fold belt in South China to the south or southwest, the structural direction is NW direction, the secondary EW direction fault development, the NW deep fault strictly controls the distribution of magmatic rocks and ore deposits in the mineralization belt, while the secondary EW direction fault is mostly ore-holding structure. Since the Caledonian period, multi-stage granite, diorite and various volcanic rocks have formed a complex tectonic magmatic belt, and magmatic rocks and volcanic activity are the leading factors of mineralization, which not only provide rich material sources for mineralization, but also provide hydrothermal and ore storage space. With the activity of magmatic rocks, a series of multi-type copper, gold, iron, tin, lead and other polymetallic deposits have been formed in the metallogenic belt, such as Seppun super large copper-gold mine, Fukai super large copper-gold mine, Funoan large-scale iron ore mine, Weilong gold mine, South Bataan large tin polymetallic ore field, Lasau gold mine and polymetallic ore deposit, which is an important porphyry-type, skarn-type, tectonic fracture zone filled gold polymetallic ore deposit mineralization belt, gold deposits are mainly distributed in Sichuankou area, Saipen area and Lasho area.

All kinds of minerals in Laos are generally controlled by regional tectonic magma zone and sedimentary facies zone, and different tectonic units have their own specific metallogenic series. According to the 7 structural units currently divided, 7 homogeneous mineralization zones can be divided. The zones of each mineralization zone are as follows:

(1) Jinghong-will sun-tanned ore belt, the gemstones produced are mainly sapphires, accompanied by spinel, with medium-sized scale or above.

(2) Phongsaly-Phrae mineralization belt. The northern section of the zone is dominated by Mesozoic sedimentary salts and coal minerals, with a small number of copper mineralization points, sandstone-type copper mineralization in the southern section of Beibin, and some alluvial placer gold mineralization near the river.

(3) Luang Prabang-Loei metallogenic belt. Gold, lead-zinc, antimony, copper, tin and other mineralizations are commonly found in the Heisei period acid volcanic belt and Indochinese granite belt on the east side of the Luang Prabang suture belt, and sedimentary salt and barite ore mines develop in the southern part of the belt. The main deposits are Paben Gold Mine, Fudao Gold Mine and Paluan Lead-Zinc Mine.

(4) Sannu mineralization belt. The zone is an island arc mineralization belt, mainly copper, lead-zinc, gold and tin mineralization controlled by the granite belt, adjacent to the Majiang Rift Zone, there may be nickel, chromite mineralization related to mafic ultramafic rocks, in addition to some sedimentary barite ore.

(5) Sichuan-Changshan polymetallic metallogenic belt. Typical deposits distributed in this zone include the Fukai and Sai Ben super-large porphyry-type copper-gold mines, the large tin mines in South Batan, and the large sikalite-type iron ore deposits such as Funoan in Sichuan, Vientiane Palai and Gammon Bannong. In addition, there are Nameng copper polymetallic ores discovered in recent years, as well as a number of small deposits or occurrences such as lead, zinc, copper, gold, manganese and sulfur.

(6) Vientiane-Kunsong metallogenic belt. Mainly potash deposits, but also mineralisation of bauxite, gold, copper and gemstone.

(7) Menggao-Bundun metallogenic belt. Mainly gold belts, tin mines, and occasionally sapphire mines.

Excellent mineralization conditions; The gold deposits formed in the zone are mainly distributed in Luang Prabang area and Balai and Sanakan areas of Vientiane Province, and typical gold deposits include a series of gold deposits with development value, such as Paben Gold Mine, Sanakan Gold Mine, Palai Gold Mine, Ban Kang Gold Mine, and other polymetallic semi-raw ores.

2. Cooperation and investment model

Mineral resources projects generally have three types of cooperation and investment: one is trade import, the other is risk exploration, and the third is merger or shareholding.

(1) Trade imports

China's small and medium-sized enterprises, do not have the strength to carry out field exploration and mining, can use foreign trade to import Lao minerals, the risk is small, and there is no geographical restrictions, but in recent years, mineral prices have fluctuated greatly, and the impact on foreign trade companies is relatively large.

(2) Risk exploration

Most developed countries in the world mostly use risk exploration to develop foreign mineral resources. The advantage of this is that the investment in prospecting exploration is relatively small, and although the risk is high, the high risk often leads to high profits. China's geological exploration technology has matured, and we should take the initiative to go out.

The northern region of Laos is rich in mineral resources, good infrastructure conditions, and relatively close to the capital Vientiane, and politically stable, so the provinces around Vientiane City are the preferred areas for census and exploration. Hua Phan Province, Vientiane Province, Luang Prabang Province and Chuan Khouang Province are located in five ore belts, mainly rich in non-ferrous metals, including copper, lead and zinc, tin, gold and iron, which is the first choice for metal exploration and development. Now China has cooperated with the Lao government to develop the Vientiane salt mine, which has achieved good results and can be used as a reference for China to go global.

Southern Laos Attapo, Saigong and Champasak provinces are also relatively rich in mineral resources, although coal and metal deposits are found more, but half of the area is high mountains and plateaus, and is located in the border area, west of Thailand, east of Vietnam, south of Cambodia, political security is unstable, single mineral belt, the author believes that at present should not take the initiative to explore, to wait and see.

At present, there are not many ore deposits found in central Laos, the degree of exploration and exploitation is low, most of them are plain areas, the natural conditions are good, and there is huge mineral mining potential.

(3) Shareholding cooperation

To buy out the equity of a mine is to buy the shares of the mine according to a certain percentage, or invest in a certain proportion in a new mine, so as to obtain the right to distribute mine products. Buying out shares is risky but expensive, and economically powerful state-owned enterprises can mine Laos' minerals in this way. In view of the large number of mineral resources in southern Laos and the many risk factors, Chinese enterprises can take advantage of them

Funding works with local governments to develop local resources. You can use Lao resources for your own use and earn foreign exchange. Local disadvantages are avoided.

3. Risk control and partners

As one of the underdeveloped countries, Laos has a low degree of mineral resources exploitation, but the resource potential is huge, and Laos is also one of the socialist countries, politically similar to China, strong regionality, is one of the first choice countries for China's mineral enterprises to go out. At present, China's economic development is becoming more and more dependent on foreign mineral resources, and enterprises going out is the way to achieve a strong country. However, there are also some potential risks and uncertainties:

Legal risks: Legal risks of the mining rights system. Risks in the management of the mining regime. Legal risks of foreign investment. Mining labor legal risks.

Economic risks: infrastructure issues, tax and fee complexities.

Security risks: Laos has stable social security, good internal and external environment, and low security risks.

Although Laos is one of the least developed countries in the world, but with China's economic complementarity, cooperation potential is huge, before investment can carry out prior investigation, analysis, risk assessment, do a good job in risk avoidance and management, but also can actively use insurance, guarantee, banking and other insurance financial institutions and other professional risk management institutions related business to protect their own investment legitimate rights and interests. At the same time, these risks can be through cooperation with those third-party enterprises who are familiar with Laos' politics, economy, law, culture, taxation, security, etc., and are good at using their influence and market advantages in Laos, which can appropriately reduce risks and win-win cooperation, and can also enter the mining market of Laos in the shortest time and at the lowest cost.

Four. Mine cooperation project promotion and cooperation mode:

The project has been filed with the Lao government and obtained prospecting rights, mining rights and related licensing documents.

1. Attapo copper mine 120 square kilometers

2. Attapo copper mine 111 square kilometers

3. Huapan iron ore mine 129 square kilometers iron ore

4. Luang Prabang province iron ore mining area of 2,<> square kilometers

5. The capital Vientiane City gold mine and rare earth mine 1142 square kilometers

6. Sesongben Gold Mine 159 square kilometers

7. Sekong Province iron ore 120 square kilometers

8. The Xayaburi Gold Mine is 196 square kilometers

9. The Xayaburi Gold Mine is 186 square kilometers

10. Vientiane province 2 square kilometers of iron ore

Cooperation Model:

1. Independent prospecting and mining, independent operation, at your own risk.

2. Cooperate with related enterprises to operate, benefit sharing, risk sharing.

3. Acquire the shares of local related enterprises and achieve win-win cooperation through complementary advantages.

4. Other legal ways that can be negotiated and explored. ■