Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodian gold production tops 3.5 tonnes in early August

Cambodian gold production tops 3.5 tonnes in early August

Content image - Phnom Penh Post
Cambodia's two gold producers have pumped out 252 semi-refined gold bars weighing 3,563kg as of the beginning of this month, according to a senior mining official on August 9. DELCOM PAGE

Cambodian gold production tops 3.5 tonnes in early August

Cambodia's two gold producers have pumped out 252 semi-refined gold bars weighing 3,563kg as of the beginning of this month, according to a senior mining official on August 9.

Ministry of Mines and Energy director-general for Mineral Resources Ung Dipola said that Renaissance Minerals (Cambodia) Ltd, a subsidiary of Australia-listed Emerald Resources NL that operates in Mondulkiri province, has produced 232 dore bars – with 90 per cent gold solution – weighing about 3,543kg, and has paid more than $5.1 million in royalties.

In Preah Vihear province, the “medium-sized” Delcom (Kampuchea) Pte Ltd on August 4 started trial production and has since pumped out 20 semi-refined gold bars weighing a total of around 20kg, Dipola said, adding that the company plans to produce 340kg each year. He estimated that this would mean around $600,000 of royalties per annum.

He revealed that five other companies have been granted gold mining licences.

Acknowledging the issue of disorderly gold mining in Ratanakkiri, Dipola assured that there are no formal gold mining businesses in the northeastern province, although there are three active gold exploration licences – two granted to a subsidiary of Canadian company Angkor Gold Corp and Chinese firm Oriental Wisdom.

Mines ministry secretary of state Ty Norin said that, to strengthen the management and development of the mining sector, his ministry has set up a pre-licensing mechanism that takes key economic, environmental and social considerations into account.

Regarding concerns over disorderly gold mining, he stated: “The ministry has organised four working groups to review and inspect operations involving mineral resources, according to the type of mining business.

“The working groups have cracked down on illegal gold mining activities in Chung Phlas commune of Mondulkiri province; Phnom Chy in Kampong Thom province; and Phnom Long in Preah Vihear province,” Norin added.

Hong Vanak, a researcher at the Royal Academy of Cambodia, said that Renaissance has witnessed a remarkable increase in gold production, and that royalties have contributed to the country’s economic growth.

He commented that the formal mining business offers labour opportunities in the region. “The government should keep pressing for companies to comply with mining regulations and should continue to licence these types of companies to explore for gold in other areas,” he suggested.

Renaissance’s gold project is located in the Okvau area in the eastern corridor of Chung Phlas commune of southwestern Mondulkiri province’s Keo Seima district. The company began the commercial operation of the project in June 21 last year, and plans to produce an annual average of three tonnes of dore bars.

Cambodia expects the Okvau Gold Project to generate $185 million per annum in pre-tax cashflow, with $40 million from royalties and taxes transferred to the national budget.

MOST VIEWED

  • Siem Reap drain canal now ‘mangrove’ promenade

    A more than half a kilometre long stretch of canal in Siem Reap has been covered and turned into a promenade to attract visitors, said Ly Rasmey, secretary of state at the Ministry of Land Management, Urban Planning and Construction, on September 16. The new pedestrianised

  • Typhoon Noru brings flash floods – 16 dead

    An official warned that that the 16th typhoon of the season, Noru, had brought heavy rains to areas the Mekong River and flooded thousands of homes in the provinces bordering Thailand. As of September 27, the death toll from the flooding had risen to 16. National Committee

  • Angkor wildlife, aquarium park still to open October

    The Angkor Wildlife and Aquarium complex about 30km southeast of Siem Reap town with initial total investment of more than $70 million is reportedly still on track for an end-October opening. The park is located on a 100ha plot along National Road 6 in Kbon village, Khchas

  • Final verdicts for Khmer Rouge leaders ‘vital’ for next generation

    Nearly a decade after the commencement of Case 002/02 against Khieu Samphan back in 2014, the Extraordinary Chambers in the Courts of Cambodia (ECCC) is now set to deliver its final verdict for the former Khmer Rouge head of state. The Supreme Court Chamber of the ECCC,

  • Defence minister reaffirms Kingdom’s staunch support for One-China policy

    Minister of National Defence General Tea Banh has reaffirmed Cambodia’s unwavering support for the One-China policy. Tea Banh was speaking at the September 20 ceremonial handover of 117 vehicles and other military equipment donated by China’s defence ministry, held at Phnom Chumreay International Military Training

  • Deaths due to ‘lifestyle’ diseases rise in Kingdom

    The Ministry of Health has called on people to pay closer attention to their health to protect themselves from non-communicable diseases (NCDs) which it said have caused high rates of deaths in the country. Ministry secretary of state York Sambath made the call at a