Dakcheung Bauxite Project in Laos Advances Amid Environmental Concerns

A significant bauxite mining and alumina processing project in southern Laos is moving closer to its 2028 production goal, with both Lao and Vietnamese officials now prioritizing discussions around environmental risks and community impacts. A recent workshop held in Vientiane on September 10 brought together project developers and officials to address management strategies, technical standards, and local workforce preparations for the Dakcheung project in Xekong province.

Construction of the Dakcheung complex commenced in late 2022 and is designed to process bauxite into alumina, allowing Laos to enhance its domestic processing capabilities before exporting the material or using it for further production. The first phase of the project aims for an annual output of 1 million tonnes of alumina, with plans to double this capacity to 2 million tonnes by 2035.

According to project developers, the initiative is expected to create over 1,000 direct jobs within the first three years, increasing to approximately 1,500 to 1,800 jobs once fully operational. Developers have committed to prioritizing local recruitment and training as the project moves forward.

“The Dakcheung project must combine industrial development with environmental safeguards and measures to limit its impact on local communities.”Lao and Vietnamese officials

Environmental management emerged as a key topic during the workshop, with discussions focusing on strategies to manage water resources, mining waste, and the red mud produced during alumina processing. The developers, Vietnam-Phuong Group (VPG) and its Lao subsidiary VPG Lao-Viet One Member Co., Ltd. (VLV), acknowledged the importance of integrating industrial development with environmental safeguards to mitigate potential impacts on local communities.

Concerns regarding environmental and community impacts are not new in the region. Previous bauxite mining initiatives, such as a project pursued by Thai and Chinese investors on the Bolaven Plateau in Champasak Province, faced backlash due to community displacement and loss of land access amid agribusiness and hydropower developments. Despite a government advisory recommending restrictions on mining, that project appeared to be delayed rather than canceled by mid-2020, raising further concerns about the sustainability of such operations.

Officials from both Laos and Vietnam have emphasized that the Dakcheung project must balance industrial growth with environmental protection and community welfare. This approach reflects a growing awareness of the need for sustainable practices in the mining sector, particularly in light of past challenges.