Sepon mine assists flood response with $30 million advance tax payment

MMG LXML Sepon presented a cheque for US$30 million to the Lao government on 28 November, following a request for early payment of taxes.  The early payment will help the government manage the financial response to the heavy flooding which affected parts of Laos earlier this year.

The government estimates the cost of the flood damage at about US$140 million.

The advance tax payment is an instalment of the mine’s expected profit tax payment for 2011, due to be paid in March 2012.  Apart from profit tax, the Lao government also receives direct revenue from royalties, rent of the contract and mining area, income tax on salaries, and dividend payments from its 10% stake in the mine.  The Sepon mine has generated over US$600 million in direct revenue for the Lao Government since operations commenced.

MMG Chief Executive Office Andrew Michelmore (third from left) presenting a cheque to the government of Laos through Mr Soulivong Daravong, Minister of Energy and Mines (third from right), accompanied by MMG managers and advisers

Chief Executive Officer of MMG, Mr Andrew Michelmore recently visited Laos and extended the Company’s support to those impacted by the floods.  Mr Michelmore met with Mr Soulivong Daravong, Minister of the Ministry of Energy and Mines on his visit.

“I was shocked by the impact of the flooding,” said Mr Michelmore.

“The floods have also affected communities close to Sepon mine.  In addition to the advance payment, we have provided a total of over US$100,000 in donations and other assistance for the floods through the authorities in Vientiane, Savannakhet and Vilabouly,” he said.

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