LXML delivers US$ 20 m dividends to Laos

(KPL) Oxiana – Lane Xang Minerals Limited (LXML) has paid total dividends of US$ 20.6 million to the State-Owned Enterprise Finance Management Department, the Ministry of Finance, since June last year.
Dividend payment took place on 24th April, in which Mr. Peter Albert, Oxiana – LXML Managing Director, handed over a dividend payment of US$ 20.6m to Mr. Sithisone Thepphasy, Director General of State-Owned Enterprise Finance Management Department.
On the 30th June 2007 the Government exercised its option to acquire a 10% holding in Oxiana – LXML. The option was part of the Minerals Exploration and Production Agreement (MEPA), a contract between Oxiana-LXML and the Government. The Government shareholding was funded by a free carry loan by the Company.
A total of US$ 16.4m was paid in 2007 and US$ 4.2m in 2008. These amounts are in addition to the US$ 115.7m of tax revenues paid to the Government for 2007. Out of the total dividend of US$ 20.6m loan repayment was made to the Company. As a result, the balance of US$ 3.7m was received by the Government as of the date of the ceremony
”We are now shareholders in the Sepon Project together, and we have demonstrated a good relationship over a number of years now,” said Mr. Sithisone Thepphasy, Director General of State-Owned Enterprise Finance Management Department. He also mentioned that LXML was a good model project of the Lao Government that has helped improve the living conditions of the local community in which it operates.
As a 10% shareholder, the Government is entitled to be represented on Oxiana-LXML’s Board of Directors. Recently, the Government has appointed Ms. Vanida Savaddy, Deputy Director General of the State-Owned Enterprise Finance Management Department as Board member.
Mr. Peter Albert, Oxiana – LXML Managing Director said at the hand over ceremony that being a shareholder with the company was a key to a good relationship which can further strengthen the Sepon Project”.
Mr. Peter Albert also added that the company was looking to generate more dividends in the future, and this will be dependent on two main factors, good operational performance in the production of copper and a high copper price which has rallied to higher levels in recent times.

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