Pan Australian Resources has officially opened its US$241 million dollar Phu Kham copper-gold operation in Laos, ahead of schedule and within budget, paving the way for the company to take advantage of current record copper prices.

Pan Australian’s Managing Director Gary Stafford said the operation would make a major contribution to sustainable economic development in Laos.

“PanAust already employs over 1,100 workers at Phu Kham. 90 per cent of these employees are Lao and 400 are from the local community,” Mr Stafford said.

He added that PanAust has already funded extensive local development, and is contributing $300,000 per year towards a community development fund.

“We have already funded the development of roads, water and schools and road infrastructure in the region around Phu Kham and around our remote exploration sites.”

The operation commenced production of copper-gold concentrate in April and is moving towards the Phase 1 target of 60,000 tonnes of copper, 60,000 ounces of gold and 600,000 ounces of silver a year from 12 million tonnes of ore throughput. The company has committed to a US$40 million dollar increase in throughput to 16 million tonnes per annum from 2010 and will be working towards a goal of 100,000 tonnes of copper per annum, which would make Phu Kham significant on a world scale.