Cambodia host first international conference on mining resources

Cambodia host first international conference on mining resources
By Chhorng Long Heng

Cambodian government in cooperation with the UNDP here under the support from Australian government and mine exploration companies association here on May 26 hosted a two- day first international conference on mining fields, under theme of “staking in a claim for Cambodia,” to explore experience, and knowledge, effective management on mining fields in contribution for economic development and reducing poverty in the country.
Speaking at the conference, Prime Minister Samdech Techo Hun Sen said that the geological-mine research conducted from the end of 19th century by the French and Chinese geological engineers revealed that Cambodia has a large potential for diverse mineral deposits and the have yet to be assessed in terms of size and their economical profitability. “These mineral resources are important for Cambodia to attract domestic and foreign investments to conduct exploration and mining for the national development,” prime minister Hun Sen said in his opening remarks of the conference that attend from diplomats, foreign guests, experts and companies.

“The government always has urged to invest on the mineral resources, petroleum, oil and gas through research study for potentials of the resources before reaching to investment and corporation related with consideration of natural environment protection, and society, management, and using the revenue from the all these resources with effectiveness, transparency, accountability to serve the benefits for society, economic development and poverty reduction of local people in the country,” Prime Minister Hun Sen added.

“The government ensures the division of the revenue from the natural resources with equity within sustainable development of environment thorough management and usage of those resources,” he highlighted.
He continued that obviously a number of Arabic countries are rich for natural petroleum and gas and they have made efforts and refined those resources and as results, the resources helped develop their countries and people live with prosperity. Currently, Cambodia does not gain benefits from those natural resources but if fortunately we get hub of mineral resources, we will ensure using the revenue from those resources with effectiveness for poverty reduction, and high responsibility,” he emphasized. If the mineral development is in positive picture for social –economic development process, we will not abandon this choice,” He noted. So far the government has paid attention on the conversation of natural resources especially on inland, offshore, Tonle Sap Lake, and area surrounding Tonel Sap Lake,” he said, adding that in Svay Reing province could be mineral resources according to the research study. We have to remember that development of mineral fields is not only one choice for economic development of the country because besides mineral resources and gas, petroleum that are new chance for Cambodia. But Cambodia has still other potential fields such as agriculture, Agric-industry, other products for exporting, energy, construction, infrastructures, service, banking and finance, tourism, and telecommunication and others.

He also pointed out that ministry of industry, mine, and energy (MIME) and all stakeholders need to continue to track strictly on research study and mineral trade, and have to withdraw licensing of mine exploration for any companies that did not follow regulations from the government. We need to train more for human resources on mineral fields and if possible we have to send our officials for training at foreign countries or conduct short course training for enhancing capacity building, and ministry have to eliminate all kinds of anarchic mineral artisan works in the country.
Douglas Broderick, UNDP resident representative said that today’s event is timely, as Cambodia stands poised to develop its nascent mining industry. Early exploration has shown that country has exciting geological potentials. But as we are all aware, we have to work wisely to get it right. Ensuring that the right practices and policies are in place-and adhere to –is the only way to responsibly develop Cambodia’s mining industry. “In Cambodia, we have an opportunity to ensure that mining sector contributes to poverty reduction and advances projects towards the development Cambodian Millennium Development goals (CMDGs) by making sure principles of social and environmental protection, transparency, and accountability are in place,” he noted. Today we also have the guests from the Indonesia, Mongolia, and our neighboring countries Vietnam, and Laos. .
The report from UNDP said that Cambodia only received about 0.18 per cent of 6 per cent of in Asia Pacific region from the world exploration budget 2009 that cost of 7.3 billion US dollars.

The statement from MIME said that Cambodia’s promising and potentially rice mineral resources endowment is known to include gold, copper, tin, zinc, bauxite, iron, ores, manganese, gemstones, zircon, phosphate rock, salt, and silica.

Between 2001 and 2005, the mining and quarrying sector, spurred by a growing construction industry, (which was to a certain extent driven by tourism) contributed 0.39 per cent of Cambodia’s GDP, an increase of 150%. Although this was still small, as sector only employed an estimated 19,000 people, it represented significant increase in activity.

By 2005, the CDC (the council for the development of Cambodia) reported that the value of mining projects approved has reached 181 million US dollars. The official statistic of the general department of mineral resources (GDMR) show that mining activities in Cambodia between 2005-2007 involved the production of laterite block for building, limestone for cement manufacturing , and sand, gravel and stone for construction or ornamental purposes.

Cambodia has some 60 local and foreign firms including companies from Australia, China, South Korea and Vietnam have been conducting mineral research and exploration across Cambodia and these companies included BHP Billiton, Mitsubishi joint venture, exploring for bauxite and OZ minerals and southern Gold, exploring for gold. OZ mineral is the operator of the Sepon mine in neighboring countries Laos. Kenertic, a South Korean company claimed to have found large iron ore deposits.

Australian firm OZ Minerals Limited had recently discovered about 8.1 million tons of gold ore in an area in Keo Seima district of Mondulkiri province, the northeastern part of the country,”said Sok Leng, director general of the General Department of Mineral Resources at Cambodia’s Ministry of Industry, Mines and Energy

The statement from the UNDP here, By early 2008, although these companies has each invested several millions of dollars in exploration work, budgets has begun to decrease as declining demand in the regional recession drove down commodity price. Across the world, exploration plans and mining projects were postponed. Cambodia, at the threshold of some real interests in its mining potential, now finds itself in 2009 with several projects suspended. It is not alone, as world –wide, exploration expenditure in 2009 is reported to be 42 % less than the 14.4 billion US dollars spend in 2008. The Cambodian government clearly recognizes that good policy supported with clear strategy, coupled with sound mining law and fair regulation, will demonstrate that kingdom is a good mining destination,” the statement from UNDP noted.

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