Logo of Phnom Penh Post newspaper Phnom Penh Post - Two firms get priority rights to mines

Two firms get priority rights to mines

Content image - Phnom Penh Post
The gold-polymetallic mining areas cover 207sq km. Photo supplied

Two firms get priority rights to mines

The Ministry of Mines and Energy has given the nod to two companies to continue their exploration licence approval processes for some 207sq km of gold-polymetallic mining areas in Tbong Khmum and Ratanakkiri provinces.

The areas are 107.10sq km in the Memot area in Tbong Khmum’s eastern Memot district and 100sq km in the Phnom Pang area in Ratanakkiri’s southeastern O’Yadao district.

In a December 21 letter signed by minister Suy Sem and addressed to the two firms, the ministry said Renaissance Minerals (Cambodia) Ltd had been selected for the bloc in Memot, while Original Wisdom Consulting Services (Cambodia) Investment Co Ltd had been chosen for the Phnom Pang bloc.

The letter obliged the two companies to process their permits at the commune halls where their respective concessions are located.

Once confirmed by the offices, the firms must report to the ministry within 15 days. Failure to do so will result in relinquishing the priority rights given by the ministry, according to the letter.

The ministry denied Xinruichang Mining Co Ltd’s and Asian Comfort Investment Co Ltd’s bids for mining licences for the Memot bloc, citing “ineligibility for recruitment”.

Yos Mony Rath, director-general of the ministry’s General Department of Mineral Resources, told The Post on December 24 that the ministry’s commission officials made their selection after an evaluation that took “the confirmation of skills, experience and research techniques” into account.

He stressed the areas’ potential for exploitable metallic mineral resources, chiefly gold.

“Four companies were shortlisted, but after reviewing the procedures, the ministry decided to select the two firms as winners, which are allowed to continue their processes to obtain exploration licences in the area,” Mony Rath said.

But this does not immediately authorise the companies to start mining activities on the sites, he said, pointing out that an environmental impact assessment (EIA) and other procedures are required for the issue of a licence.

He also noted that applications for mining investment licences in Cambodia had not declined despite the outbreak of Covid-19, which will contribute to Cambodia’s economic growth.

According to him, there are currently about 50 companies licensed to mine in Cambodia.

Renaissance, a subsidiary of Australia-listed Emerald Resources NL, says it has largely weathered the fallout from Covid-19 and is on track to begin extracting gold in the first half of next year.

The company is in the process of developing a gold mine in the Okvau area in Mondulkiri province’s southwestern Keo Seima district.

It is also building a gold processing plant in Okvau, which it expects will be able to extract gold in the first half of next year. Original Wisdom is a joint venture between Chinese and Cambodian investors, according to Mony Rath.

Last year, Cambodia received about $21 million in non-tax revenue from the mining sector, compared to about $20 million in 2018, the ministry reported.

Mony Rath defines “non-tax revenue” as recurring income obtained by the ministry through sources other than taxes such as licensing fees, land leases, royalties and penalties.

MOST VIEWED

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Newest horror film showcases unique Khmer culture, identity

    At first glance, the trailer to new horror sensation The Ritual: Black Nun looks like a western-produced feature film. As the story reveals itself to the viewers, it becomes clearer that this is a Khmer film, with a strong Cambodian identity and close links to

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one

  • Water supply authority assures public shortages over early ‘24

    The Phnom Penh Water Supply Authority (PPWSA) asked for understanding from Phnom Penh residents in some communes where water pressure is weak. They assured residents that all supply issues will be resolved by early 2024, but have suggested that residents use water sparingly in the meantime.

  • Khmer ballet documentary debuts April 1

    A new documentary, The Perfect Motion, or Tep Hattha in Khmer, will premiere to the public on April 1. The documentary film follows two intertwined storylines: the creation of a show called Metamorphosis by the late Princess Norodom Buppha Devi (her very last production) and the