Malaysian-based electrical power technology company Pestech International Bhd inked a contract to construct the $7.34 million 230/11kV Okvau Transmission Substation, leading Malaysian business publisher The Edge Media Group Pte Ltd reported on Thursday.
The substation will serve the Mondulkiri province-based Okvau Gold Project, which is owned by Australia-listed mining firm Emerald Resources NL.
Pestech told The Edge that the project is the first gold mine transmission substation asset to be undertaken by its subsidiary Pestech (Cambodia) Plc, which commenced on March 1 and is scheduled to be completed within 12 months.
Emerald Resources NL, through its subsidiary Renaissance Minerals (Cambodia) Ltd, expects to extract gold from the Okvau Gold Project in the second quarter of 2021.
“The project will contribute positively towards the revenue and earnings of Pestech in accordance to the stage of project progress to be recognised in the financial years ending June 30, 2020, to June 30, 2021,” it was quoted by The Edge as saying.
Pestech added that it will strive to serve the needs for reliable electricity in the region, which is crucial amid the ongoing Covid-19 outbreak.
Pestech rose one sen (0.14 US cents) or 1.1% to 89 sen, giving it a market capitalisation of 679.37 million ringgit ($157 million), the report said.
Earlier this month, Emerald Resources NL signed a $230 million mining contract with Mining and Civil Australia for its Okvau Gold Project in Cambodia.
The companies signed a seven-year contract, which includes the supply of earthmoving equipment and mining services for the Cambodian gold project. It also covers load, haul, drill and blast services.
Emerald Resources NL said the mobilisation to the Okvau Gold Project is expected to begin in August, with operations due to start in October.
The company released its definitive feasibility study in May 2017 and revealed that the project could produce 106,000 ounces of gold per year on average.
It estimated that the mine will initially be active for seven years, with capital investment amounting to A$98 million (US$60.4 million).
Department of Mineral Resources director-general Yos Monirath told The Post last month that the government granted the company an industrial mining licence in July 2018. The licence covers 11.5sq km at the Okvau Gold Project.
The licence is valid for 15 years and can be extended twice for 10 additional years, Monirath said.
The ministry has issued such licences to 37 companies, which are exploring areas in Mondulkiri, Ratanakkiri, Kratie and Stung Treng provinces.