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Though mining was a major draw for foreign
investors into the Lao PDR in the mid-1990s, the Asian economic
crisis beginning in 1997 reduced Thailand's demand for fossil fuels,
weakening this industry in Laos. Around the same time, the
Government issued an amendment to the Investment Law, requiring that
all applications for investments involving natural resources have to
be approved by the Prime Minister. No foreign investment license has
been given in the mining sector since 1999.
The Lao PDR has a plentiful supply of the
following natural resources: coal, natural gas, tin, iron ore, gold,
and precious stones.
As
transportation routes improve and Thailand recovers from the economic
downturn, the mining sector looks to be an enticing prospect for
foreign investment. |