CAMBODIA'S gold mining venture has started seeing returns as the Okvau Gold Project in southwestern Mondulkiri province has produced more than half a tonne of gold ore as of last Thursday.
Ministry of Mines and Energy director-general for Mineral Resources Ung Dipola told the Phnom Penh Post that the mining operations has produced so far 46 gold dore bars, weighing a total of 522kg, or an average of 11.35kg per bar.
The mining operations are run by Renaissance, a subsidiary of Australia-listed Emerald Resources, which launched commercial operations at the site in June this year.
Emerald last week had announced that it had achieved the successful ramp up of operations to full production at the mine and was on track to reach 23,000 ounces (652kg) by the end of the year.
Dipola said that according to the General Department of Customs and Excise of Cambodia, 247kg of gold dore bars have already been exported to Australia to be refined into 99.99 per cent pure gold.
A gold dore bar is usually 90 per cent gold.
He described the progress at the Okvau mine as a "source of pride" for the government and all the stakeholders, and it showed the untapped potential in the mining sector in Cambodia, which he termed a "sovannaphum", or golden land.
"We expect more companies to come to study and invest in Cambodia's mineral resources sector, which will provide a significant windfall of national economic growth and create new job opportunities for Cambodians," he said.
However, he cautioned that project owners must conduct detailed Initial Environmental and Socio-economic impact assessments to ensure sustainable development.
At the inauguration ceremony of the gold refinery, Minister of Mines and Energy Suy Sem said the project was designed to process nearly two million tonnes of ore per year, and is expected to yield an annual average of three tonnes of gold dore bars over a period of eight years.
"This achievement has brought an influx of foreign investment in Cambodia, creating employment and economic opportunities, reinforcing the diversification of local industries, and providing many other socio-economic benefits for Cambodia," he had said.
Prime Minister Hun Sen had then said that the start of the project came after 14 years of exploration and research by Renaissance.
Cambodia expects the project to generate about US$185 million per annum in pre-tax profit, with about US$40 million going to the government from royalties and taxes.
The Ministry of Environment had approved the environmental and social impact assessment for the project in November 2017, and the mines ministry granted an extraction licence the following year.
A Mineral Investment Agreement was approved by the government in December 2019 between the government and the mining company.
According to Dipola, Renaissance's exploration and mining licences cover a total area of 1,227.16 sq km in Mondulkiri, Kratie and Tbong Khmum provinces.