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In a brief statement, the company said the security incident occurred last night at the accommodation camp of its Phu Kham copper-gold mine.
The wounded employee has been evacuated to Thailand for treatment and PanAust said it was in regular contact with the family of the injured worker.
The incident is being investigated by Lao police.
PanAust has suspended all mining, processing and maintenance activities at the mine for 48 hours as a precautionary measure in line with the company鈥檚 security protocols.
Phu Kham is set to produce 65,000-70,000 tonnes of copper in 2014 at C1 costs of $US1.50-1.60 per pound.
Shares in PanAust dropped 3.9% to $A1.875.
