EXTRANCHECK: PSV AT LANG XANG MINERALS - LICENSE

UNCLAS VIENTIANE 000854 SIPDIS SIPDIS COMMERCE FOR OEA/532/JANET HOWARD COMMERCE FOR OEA/532/MARKITA NICKSON-DORSEY STATE FOR EAP/MLS STATE FOR EEB/ESP BANGKOK PASS COMMERCE FOR JAMES GOLSEN BANGKOK FOR ICE ATTACHE E.O. 12958: N/A TAGS: BEXP ETRD ETTC LA SUBJECT: EXTRANCHECK: PSV AT LANG XANG MINERALS - LICENSE NO. D366523 REF: USDOC 5823 ¶1. Economic officer Joshua Archibald carried out the post-shipment export verification at Lane Xang Minerals in Savannakhet Province, Laos, on November 20, 2007. ¶2. Econoff met with Jukka Kortelainen, Copper Process Engineer at Lane Xang Minerals, for approximately 3 hours on November 20. Mr. Kortelainen noted the company had been informed it would likely be subject to a PSV and was not surprised by the mission. Econoff was able to inspect the Thermoteknix camera and accessories used by the copper process engineers, and it matched the description of the goods in reftel. Mr. Kortelainen described its use as occasional and in line with reftel. Econoff also met with Mr. Brett Rae, senior electrical supervisor for Lane Xang, and saw the second Thermoteknix camera referenced in reftel. Mr. Rae's use of that camera also appeared to be without problem. Both cameras are stored in special boxes in the offices of Mr. Kortelainen and Mr. Rae respectively. Both Mr. Kortelainen and Mr. Rae indicated the cameras were generally used by Lao national staff members. Please note that as the controlled element--the Alo cameras--are integrated within the larger Thermoteknix cameras, it was not possible to separately inspect the Alo cameras themselves. ¶3. Econoff was able to schedule the PSV without difficulties working through Oxiana's Executive General Manager for Asia Mr. Peter Albert. Oxiana Limited is an Australian mining firm that is the majority (90%) owner of Lane Xang Minerals. The Government of Laos recently exercised its right to purchase ten percent of Lane Xang. Mr. Albert facilitated econoff's travel and was very helpful. All employees at Lane Xang were open about the use of the goods being verified. Econoff toured the company's facilities without incident. ¶4. Recommendation: All indications are that the goods have been used in accordance with the terms of their export license and that Lane Xang Minerals can be considered a reliable recipient of sensitive U.S. technology. HUSO