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Cambodia gold production starts at nation’s first commercial mine
Cambodia entered the ranks of the world’s gold producers with the start of output in the Okvau region of Keo Seima district in Modulkiri province where Australian mining company, Renaissance Minerals, has carried out 14 years of exploration and research. Its Cambodian subsidiary aims to produce three tonnes of pure gold a year over an eight-year agreement with the Cambodian government. The mine employs 462 workers, 427 of whom are Cambodians.
Speaking at an official ceremony yesterday, Minister of Mines and Energy Suy Sem said Cambodia had been waiting for decades to produce gold.
“The inauguration of gold mining production is an answer to the wait,” he said, adding that the gold would be extracted “with responsibility to all interests, the economy, society and the environment to serve the country’s economic and social development”.
The operation should earn Cambodia $185 million per year in national income, including at least $40 million in royalties and tax revenue, which will be used for social development.
Natural Resource Governance Programme Manager Khim Sok told Khmer Times that the royalties will add a sizeable amount to the country’s revenue.
“This additional budget, if managed properly, could help address gaps in economic and social development,” he said. “Oxfam believes that the budget should first benefit the local communities living adjacent to the mining development areas, whose livelihoods are negatively impacted by the mining operations. It should be invested in public services such as education, health and other pro-poor development initiatives.”
The Australian Embassy’s Charge d’Affaires Luke Arnold and Second Secretary Rhys Haynes joined the mining minister at the ribbon-cutting ceremony in Mondulkiri.
“The Australian Embassy is pleased that an Australian mining business is helping support the Royal Government of Cambodia’s goal of diversifying its sources of foreign investment,” said Arnold. “Investments from Australia, like this project, will ultimately assist Cambodia to build a more resilient economy and a balanced strategic outlook in our region.”
The semi-finished bars are produced from a 90 percent gold solution. The refined gold will be purified to 99.9 percent, according to Yos Monirath, director-general of mines at the Ministry of Mines and Energy.
“There are no factories for purifying the gold, so the refined gold will be exported by the company to Singapore and Australia,” he said.
Prime Minister Hun Sen says the start of gold production should open Cambodia up to other mining companies, but he warned that it is a “risky business”. One concern is whether Cambodia has adequate infrastructure for transportation and processing but a Canadian infrastructure expert who works on projects in the Kingdom said concerns are unfounded.
“Canadians have roads for hundreds of miles leading to mines,” he said. “And the transparency will come. If you talk about corruption, look at the railroads in America in the 19th century.”
Mining is being carried out after an environmental impact assessment but Khim Sok says it is equally important for the government to invest the revenue in a sustainable manner.
“Mineral resources are public goods,” he said. “Therefore, the government must ensure public access to information regarding the business model and investment the government makes from the revenue”.
Source: https://www.khmertimeskh.com/50878812/cambodia-gold-production-starts-at-nations-first-commercial-mine/