Skip to content
AidData logo

Overview

ICBC provides $100 million loan for Laos Potash Mine Expansion Project (Linked to Record ID#64269, 64228, 64227)

Commitments (Constant USD, 2023)$100,000,000
Commitment Year•2023Country of Activity•Lao People's Democratic RepublicDirect Recipient Country of Incorporation•Lao People's Democratic RepublicOverseas Jurisdiction•Lao People's Democratic RepublicSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 29, 2023
Start (actual)
Dec 31, 2021
End (actual)
Apr 1, 2023
Last repayment (originally scheduled)
Jun 27, 2031

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

The purpose of the project was to expand a mine in Thakhek district and Khammouane Province with the capacity to produce potassium chloride. More detailed locational information can be found at https://www.openstreetmap.org/way/392487813

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Lao Kaiyuan Mining Co., Ltd

Guarantors

Private Sector

  • Qingdao East Steel Tower Stock Co., Ltd.

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Collateral providers

Private Sector

  • Sichuan Huiyuanda Potash Co., Ltd

Loan desecription

ICBC provides $100 million loan for Laos Potash Mine Expansion Project

Interest type•UnknownMaturity•8 years

Collateral

Sichuan Huiyuanda Potash Co., Ltd.’s 100% equity stake in Lao Kaiyuan Mining Co., Ltd.

Narrative

Full Description

Project narrative

In 2023, the Vientiane Branch of the Industrial and Commercial Bank of China (ICBC) issued a $100 million loan to Lao Kaiyuan Mining Co., Ltd. (老挝开元矿业有限公司) — a special purpose vehicle and wholly-owned subsidiary of Sichuan Huiyuanda Potash Co., Ltd. — for the Laos Potash Mine Expansion Project. The loan carries an 8 year maturity. Its other borrowing terms of the loan are unknown. However, it is known that the borrower purchased a Sinosure credit insurance policy, which was issued on June 29, 2023. The loan is also backed by a corporate guarantee from Qingdao East Steel Tower (东方铁塔) and collateralized against Sichuan Huiyuanda Potash Co., Ltd.’s 100% equity stake in Lao Kaiyuan Mining Co., Ltd. The purpose of the project was to expand a mine in Thakhek district and Khammouane Province. Upon completion, the project is expected to increase the mine’s capacity to produce potassium chloride by 1.5 million tons per each year. The project commenced on December 31, 2021 and was completed in April 2023.

Staff comments

1. Lao Kaiyuan Mining Co., Ltd. is a 100% Chinese owned enterprise with mining operations located in Khammouane Province, Lao PDR. The company is currently developing Asia’s largest potash mine in terms of proved and probable potash reserves. The company is a subsidiary of Kaiyuan Potash Group Limited, a Hong Kong registered entity. 2. The project is also known as the Potash Fertilizer Reconstruction And Expansion Project. The Chinese project title is 老挝甘蒙省钾镁盐矿150万吨氯化钾项目一期工程（50万吨）”项目 or 老挝开元150万吨氯化钾扩产项目一期工程 or 老挝开元钾肥项目. 3. Sichuan Huiyuanda Potash Co., Ltd. (四川省汇元达钾肥有限责任公司) is a wholly-owned subsidiary of Qingdao East Steel Tower (东方铁塔).