Booming gold mining sector yields nearly $90 million in mineral fees
For the first time, the media gained access to Cambodia’s gold mining operation, revealing the country’s growing potential. With a nummber of companies successfully extracting gold, the government has collected nearly $90 million in mineral fees, marking significant progress in the sector.
At the forefront of this development is Renaissance Minerals (Cambodia) Ltd, a subsidiary of Australia’s Emerald Resources NL, which launched the Okvau Gold Project in Keo Seima district, Mondulkiri province, producing its first gold in 2021.
According to Kong Sitha, Deputy Director General at the Ministry of Mines and Energy’s General Department of Mineral Resources, the company has refined approximately 13,720.9 kilogrammes of gold and has the capacity to extract 300 to 400 kilogrammes per month.
He added that in addition to Mondulkiri, other provinces with gold mining potential include Kratie, Kampong Thom, Tboung Khmum, Battambang, Kampot, and Oddar Meanchey.
“There are 20 to 30 companies investing in gold mining across the country, but only seven have yielded results,” he said.
Bernie Cleary, Director of the Okvau Gold Project, revealed that the mine produced 114,000 ounces of gold last year. “The bars are shipped off containing gold, silver, and copper, but the saleable part is only gold,” he explained.
Due to the absence of a gold refinery in Cambodia, the mined gold is exported for further processing. “So the bar that we send is a Dore bar, which contains other metals such as copper and silver.
We export it to a refinery, as Cambodia does not have one. At the refinery, it is processed into 99.99% pure gold,” Cleary said.
The project was initiated in 2006, and after a decade of exploration and development, Emerald Resources merged with Renaissance Minerals Cambodia in 2016.
Cleary outlined the key milestones, stating that in 2017, the environmental licence was granted by the Ministry of Environment, followed by the industrial mining licence approved in 2018 by the Ministry of Mines and Energy, which was signed by the Prime Minister. Construction of the project began in 2020, and in 2021, the first gold pour was achieved.
Looking ahead, the company has completed a 50,000-metre Stage 2 drilling programme at the Memot Gold Project in December last year. It plans to produce more than three tonnes of gold per year over the next eight years.
Beyond Mondulkiri, the company has also secured a three-year mineral exploration permit from the Ministry of Mines and Energy to study 107 square kilometres in Memot district, Tboung Khmum province.
Renaissance Minerals Cambodia currently employs nearly 700 Cambodians in gold mining, with 60 women working at its construction site. “All the trucks, excavators, and drillers you see in the pit today are operated solely by Cambodian workers,” Cleary emphasised, adding that 90% of the workforce is Cambodian.
He also highlighted the company’s investment in human capital, noting that 37 university students are now full-time employees in technical roles, including seven women working in geology, metallurgy, mining engineering, and process plant operations.
“We have about 90% Cambodian workforce, and 10% of our operators on site are female,” he said.
Kry Layhok, a mining engineer at Renaissance Minerals (Cambodia), explained the detailed gold extraction process, which includes core drilling, controlled blasting, excavation, and transportation. “We begin by drilling holes between 5 to 10 metres apart to determine the gold concentration in each location,” he said.
Once drilling is completed, samples are sent to a laboratory for gold quality analysis. For controlled blasting, specialists carefully identify blast points to ensure safety and minimise environmental impact.
Mondulkiri provincial governor, Ngin Sovimean, who inspected the province’s mineral potential last year, expressed her satisfaction with the company’s safety measures and operational standards. “I hope we continue developing our mining sector, especially in untouched areas,” she said.
She also reaffirmed the authorities’ commitment to cracking down on illegal mining activities, ensuring that no operations take place without proper permits.
As Cambodia’s gold mining sector continues to expand, stakeholders are optimistic that the Okvau Gold Project and other ventures will play a pivotal role in driving economic growth and strengthening the country’s resource management efforts.
Then-Prime Minister Hun Sen, now serving as Senate President, previously said that the commencement of gold production should attract more mining companies to Cambodia. However, he cautioned that the industry remains a “risky business.” One key concern is whether Cambodia has sufficient infrastructure for transportation and processing.
Source: https://www.khmertimeskh.com/