Completed Mixed AidData Chinese Aid

CDB provides $121.5 million loan for Lao Kaiyuan Potash Mine Project (Linked to Record ID#64269, #64227)

¥121.5M RMB

Funder	China Development Bank (CDB)
Recipient Organization	Lao Kaiyuan Mining Co., Ltd
Country	Lao People's Democratic Republic
Start Date	Dec 29, 2011
End Date	Aug 06, 2031
Duration	7,160 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`64228`

Grant Description

CDB provides $121.5 million loan for Lao Kaiyuan Potash Mine Project On December 29, 2011, China Development Bank and Lao Kaiyuan Mining Co., Ltd. (老挝开元矿业有限公司) signed a $121.5 loan agreement (ID#5110201101100000033) for the Lao Kaiyuan Potash Mine Project (as captured via Record ID#64228).

The term of this USD-denominated loan is from December 29, 2011 to December 30, 2023. The loan carries an interest rate of 6-month LIBOR plus a 4.2% margin.

Then, on August 2, 2012, China Development Bank and Lao Kaiyuan Mining Co., Ltd. signed a supplementary loan agreement (ID#5110201201100000203) worth RMB 50 million for the Lao Kaiyuan Potash Mine Project (as captured via Record ID#64269). This RMB-denominated loan carries an interest rate equivalent to the benchmark RMB interest rate.

Qingdao East Steel Tower (东方铁塔) issued guarantees for both loans.

The purpose of the project was to build a mine in Thakhek district and Khammouane Province with the capacity to produce 500,000 tons of potassium chloride each year. The project commenced in January 2011 and was completed in 2013.

📋 Staff Comments

This project is linked to a $20 million loan pledge from China Eximbank (captured in Project ID#64227) for the Lao Kaiyuan Potash Mine Project.
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.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.

📚 Sources & References

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国开行领导视察老挝开元公司
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Innogreen Company Profile 2015 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.