Laos potash project restarts as Vinachem revives $492M mine targeting 500,000 t from 2028

Vietnamese and Laotian officials relaunched a $492M Laos potash project in Khammouane province on October 12, nearly a decade after construction stalled, Archyde reported, citing Thai and Vietnamese media. The Viet-Laos Chemical and Salt venture of Vietnam National Chemical Group (Vinachem) targets commercial production of 500,000 tonnes of potassium chloride a year from 2028.

The project in Nongbok district covers 1,000 hectares and holds estimated reserves of 32 million tonnes of potassium. Work stopped in 2017 after a payment dispute with contractors, when construction was 57% complete. Authorities have required strict tailings management and monitoring of groundwater contamination and soil subsidence, after past sinkhole incidents in the area.

Lao Deputy Minister of Industry and Commerce Phouthavanh Outhavong said local processing of mineral resources creates higher value and secure jobs.

Southeast Asia imports nearly all of its potash, so new regional MOP would compete with Canadian, Russian and Belarusian supply. Thailand’s own projects are lagging. Dan Khun Thod in Nakhon Ratchasima, backed by Bangchak through a 65% stake, targets 100,000 t/yr from late 2026 or early 2027 but faces lawsuits, while Udon Thani and Chaiyaphum projects are stalled.

At 500,000 tonnes, Khammouane would be a modest addition to a market where new supply from Belarus and BHP’s Jansen is already weighing on price outlooks. Its first test is whether Vinachem can finish the remaining construction on schedule.

Source: Archyde