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      Mengkang Rare Earth Project in Laos Suspended Due to Regulatory Changes

      The Mengkang rare earth project in Laos, a joint venture between Chifeng Jilong Gold Mining and Xiamen Tungsten, has been suspended as of August 8, 2026. The decision, approved by the board on August 7, was made in response to evolving regulatory policies and the companies' commitment to corporate social responsibility. This project, located in Xiangkhouang Province, is the only rare earth asset held by the Chifeng-Xiamen partnership, which acquired a 90% stake for approximately $19 million in March 2024.

      The Mengkang project was still in its trial-mining phase when the suspension occurred. In 2025, it produced 998.56 metric tons of rare earth products, resulting in a net loss of about 54 million yuan for Chifeng Gold, which accounted for roughly 1.75% of the company's consolidated net profit. The first quarter of 2026 saw a significant drop in output to just 63.6 metric tons, raising concerns about the project's viability.

      Laos had begun promoting rare earth investments in 2024 to attract foreign capital and improve its foreign exchange reserves, reversing previous restrictions due to environmental concerns. The suspension of Mengkang highlights the operational and regulatory risks faced by Chinese-backed mining projects in the region, as both companies will monitor Laotian policy developments closely before considering a restart of operations. Stakeholders are advised to watch how resource extraction policies evolve in Laos, particularly regarding environmental management and permit renewals.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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