Vientiane (VNA) – The Lao government has threatened to slap huge fines on companies that breach mining regulations, in a move to tackle illicit activities that lead to budget and resource losses.

As reported by the Lao newspaper Vientiane Times, Prime Minister Sonexay Siphandone has signed a governmental decree specifying that fines would be issued in relation to unlawful operations concerning surveys, excavation, trade, processing, transport, concealment, and damage of minerals and more.

The document came with the government's ongoing review of mining operations across the country after learning about unlawful practices and their deleterious impact on the industry.

Under the new decree, which will come into effect on April 1, the largest fine of 2 billion kip (96,816 USD) will be imposed on companies that violate regulations on the excavation and processing of minerals.

The second largest fine of 1 billion kip targets companies using their business licence for purposes beyond its intended scope. Businesses are also not allowed to use the licence as a loan guarantee, or to excavate, trade, remove or transport reserved and prohibited minerals. Violations regarding the survey, exploration, and trade of minerals will also be subject to a fine of 1 billion kip./.