CAMBODIA'S venture into gold mining has started to produce results as the mining company announced it has produced 137 kg gold dore bars.
Prime Minister Hun Sen said the Australian mining company Renaissance Minerals (Cambodia) Ltd has produced the gold bars just over a month since it kicked off commercial operations of its flagship gold mine in the northeastern Mondulkiri province.
The Phnom Penh Post said Hun Sen was optimistic that revenue from the gold would soon start streaming in from the Okvau Gold Project, as per the concession agreement with the government.
"After a mere month into operations, we've been able to extract the equivalent of about 137 kg of dore bars containing 90 per cent gold and this will generate quite a revenue for us," he said.
On June 21, Renaissance began the commercial operation of its US$120 million project, located in the Okvau area of the province.
Cambodia's Minister of Mines and Energy Suy Sem had said then that the facility had started processing ore from the mine, casting gold alloy bars and stamped its first gold dore bar on June 21.
Construction of the plant and key infrastructure for the site began in the middle of last year.
The gold mining site and processing plant have the capacity to process nearly two million tonnes of ore a year.
The mining operations are expected to last at least eight years, with an average of three tonnes of gold being produced each year.
Hun Sen had said that Cambodia expected the project to generate some US$185 million per annum in pre-tax cashflow, with US$40 million from royalties and taxes going to the government.
However, another Cambodian project seemed to have met an early end as Hun Sen announced that the country's first oil and gas venture was a failure as it was unable to meet expected volume.
On Dec 29, Cambodia had announced that it had extracted its first drop of crude oil from its waters in the Gulf of Thailand.
The premier said the company involved, KrisEnergy, has now filed for bankruptcy and its vessels involved in the oil extraction works have also left Cambodian waters.
According to the Khmer Times, the oil drilling operations produced only 1,000 barrels per day compared with the forecasted 7,500 barrels per day when the contract was signed.
KrisEnergy held a 95 per cent stake in the venture, while the Cambodian government held the balance.
It was reportedly estimated in 2017 that Cambodia would make at least US$500 million in royalties and taxes from the project's first phase.
However, Cambodia still remains an uncharted potential for oil and gas as the 27,000 sq km of sea in the Gulf of Thailand, remains rich with hydrocarbons and gas.
Despite the setback of the KrisEnergy venture, Cambodia still hopes to be an oil and gas producing country.
Cambodia has six offshore blocks and 19 onshore blocks. There are also four further areas in an overlapping claims area, which is currently contested with Thailand.