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Cablegate: Extrancheck: Psv at Lang Xang Minerals - License

VZCZCXYZ0011
PP RUEHWEB

DE RUEHVN #0854 3300855
ZNR UUUUU ZZH
P 260855Z NOV 07
FM AMEMBASSY VIENTIANE
TO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
INFO RUEHBK/AMEMBASSY BANGKOK PRIORITY 7554
RUEHC/SECSTATE WASHDC PRIORITY 1659

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

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