South Korea and Laos plan to expand cooperation in developing iron ore and tin deposits, the Ministry of Commerce, Industry and Energy said Thursday.
The ministry said Seoul and Vientiane will sign an energy resources pact and set up a joint cooperation committee to coordinate future exploration and mining.
The signing is expected to take place Friday, in conjunction with Commerce and Industry Minister Kim Young-ju's visit to Laos.
Authorities added that the two countries will discuss whether or not to allow South Korean companies to begin the full-fledged mining of iron ore and tin in the Southeast Asian country. Laos has abundant mineral resources including iron ore, tin, coal and gemstones that make up the bulk of the country's exports.
South Korea's Seodong Co. is currently developing the Xiengkhuang mine near the Plain of Jars that may hold 50 million tons of iron ore. This mine, wholly owned by Seodong, is estimated to be worth over $4.5 million. Sources say that the site is expected to produce in upwards of 1.5 million tons of ore per year. Commercial production is scheduled to begin late next year.
Local companies are also looking to buy stakes in tin deposits currently owned by a Laotian firm, which will then be exported to South Korea.
In addition to the mining deals, joint agreements are to be signed between the state-run Korea Resources Corp. and the Korea Export Insurance Corp. and their Laotian counterparts, who will then relay all information regarding energy trends.
As of 2006, South Korea exported $23 million worth of goods to Laos and imported $18 million. South Korean firms invested $93 million in the country as of last year, mainly in mining.