Original report from Phnom Penh
18 March 2010
A handful of companies are on the verge of beginning mining parts of Cambodia’s northeast, a development that could bring much development to those areas, but could also increase poverty in an already marginalized area, experts say.
“Some companies with enough capital and high technologies have shown us positive signs that they could begin their extraction activities,” Energy Minister Suy Sem said earlier this month. “So in no more than six years, [we] will be able to get revenue from mineral resources.”
About a third of 20 licensed companies are expected to begin mineral extraction in around 2015, following exploration in the northeast provinces of Ratanakkiri, Mondulkiri and Kratie, Sok Leng, director of the ministry’s mineral department, told VOA Khmer.
He declined to name the companies, but since 2006, Cambodia has issued 104 licenses to 20 local and international mining companies, including Australian-owned Oxiana Cambodia, Liberty Mining, and Southern Gold; China’s Hang Seng Coal Mine; and Vietnam’s Vinacomin, along with other companies from Korea.
These companies are in the exploration stage in northeastern Cambodia, according to a 2009 report by the Ministry of Energy. Interest in mining has seen a swift increase, from $4 million in fixed investment in 2008 to $11 million in 2009.
Australia’s Southern Gold said on its Web site last week its tests indicate significant gold and silver in Kratie province, after seven drillings. It expects to do more in March and April.
Cambodia’s mineral potential has been well known since at least the 1960s, when geological mapping found 25 types of minerals at 145 sites.
The country has bauxite, copper, zinc, gold, iron ore, nickel, granite, gemstones and tungsten, mostly discovered in Pailin and the provinces of Kampong Thom, Kampot, Battambang, Pursat, Preah Vihear, Oddar Meanchey, Mondulkiri, Ratanakkiri and Kratie.
Small and traditional mineral extraction in gold and gemstones has taken place among Cambodian people for many years, as well as with non-metal materials like sand and stone used as construction material.
Were industrial mining to take off, it could follow lucrative revenue from oil and gas, which is expected to come in 2013 with an estimated revenue stream of $1.7 billion by 2021.
There are no such estimates for minerals, Suy Sem said. However, he said money from mining can help strengthen agriculture, education, health and infrastructure development.
Civic groups caution that weaknesses in the laws, management and transparency could dampen any gains mining might bring.
There are few controls to ensure companies are properly mining, said Mom Sambath, a member of the Extractive Industry Social and Environmental Impact Network.
If a company violates the law, “it will impact both the environment and revenue,” he said.
Already, some are warning of the impacts of mining. A 2009 study by the Cooperation Committee for Cambodia in Mondolkiri’s Keo Seima and Pechreada districts found that people are facing the loss of income and damaged forests, as well as internal disputes among indigenous people.
“I think mining extraction will be negative rather than positive if the problems remain,” said Chen Sochoeun, the researcher who conducted the study.
Beyond environmental concerns, revenue management is another problem.
“If the revenue isn’t effectively used, it will benefit to only a group of rich and powerful people,” said Chhet Sam Ath, Executive Director of NGO Forum. “As a result, social disorder will occur. The poor become poorer, and our society can’t develop.”
Civic groups have urged the government to discuss strategies related to mining to ensure revenue is used effectively.
To help manage the resources, the Cambodian government issued a law on mineral resource management and exploitation in 2001. But critics say the law is still weak and aims to protect the interest of private companies.
In 2009, the government established Public Financial Reform Committee to prepare an action plan to manage revenue from oil, gas and other mineral resources. But experts say transparency and human resources remain challenges.
Phan Phalla, deputy secretary-general of the Supreme National Economic Council, said human resource shortfalls remain, but the government has been transparent with mining.
“We continue to publish every piece of information we have on the Web site, and we have never hidden anything,” he said. “Moreover, we have been trying from day to day to effectively manage revenue from mineral resources. Our aim is to make everything transparent.”
“Some companies with enough capital and high technologies have shown us positive signs that they could begin their extraction activities,” Energy Minister Suy Sem said earlier this month. “So in no more than six years, [we] will be able to get revenue from mineral resources.”
About a third of 20 licensed companies are expected to begin mineral extraction in around 2015, following exploration in the northeast provinces of Ratanakkiri, Mondulkiri and Kratie, Sok Leng, director of the ministry’s mineral department, told VOA Khmer.
He declined to name the companies, but since 2006, Cambodia has issued 104 licenses to 20 local and international mining companies, including Australian-owned Oxiana Cambodia, Liberty Mining, and Southern Gold; China’s Hang Seng Coal Mine; and Vietnam’s Vinacomin, along with other companies from Korea.
These companies are in the exploration stage in northeastern Cambodia, according to a 2009 report by the Ministry of Energy. Interest in mining has seen a swift increase, from $4 million in fixed investment in 2008 to $11 million in 2009.
Australia’s Southern Gold said on its Web site last week its tests indicate significant gold and silver in Kratie province, after seven drillings. It expects to do more in March and April.
Cambodia’s mineral potential has been well known since at least the 1960s, when geological mapping found 25 types of minerals at 145 sites.
The country has bauxite, copper, zinc, gold, iron ore, nickel, granite, gemstones and tungsten, mostly discovered in Pailin and the provinces of Kampong Thom, Kampot, Battambang, Pursat, Preah Vihear, Oddar Meanchey, Mondulkiri, Ratanakkiri and Kratie.
Small and traditional mineral extraction in gold and gemstones has taken place among Cambodian people for many years, as well as with non-metal materials like sand and stone used as construction material.
Were industrial mining to take off, it could follow lucrative revenue from oil and gas, which is expected to come in 2013 with an estimated revenue stream of $1.7 billion by 2021.
There are no such estimates for minerals, Suy Sem said. However, he said money from mining can help strengthen agriculture, education, health and infrastructure development.
Civic groups caution that weaknesses in the laws, management and transparency could dampen any gains mining might bring.
There are few controls to ensure companies are properly mining, said Mom Sambath, a member of the Extractive Industry Social and Environmental Impact Network.
If a company violates the law, “it will impact both the environment and revenue,” he said.
Already, some are warning of the impacts of mining. A 2009 study by the Cooperation Committee for Cambodia in Mondolkiri’s Keo Seima and Pechreada districts found that people are facing the loss of income and damaged forests, as well as internal disputes among indigenous people.
“I think mining extraction will be negative rather than positive if the problems remain,” said Chen Sochoeun, the researcher who conducted the study.
Beyond environmental concerns, revenue management is another problem.
“If the revenue isn’t effectively used, it will benefit to only a group of rich and powerful people,” said Chhet Sam Ath, Executive Director of NGO Forum. “As a result, social disorder will occur. The poor become poorer, and our society can’t develop.”
Civic groups have urged the government to discuss strategies related to mining to ensure revenue is used effectively.
To help manage the resources, the Cambodian government issued a law on mineral resource management and exploitation in 2001. But critics say the law is still weak and aims to protect the interest of private companies.
In 2009, the government established Public Financial Reform Committee to prepare an action plan to manage revenue from oil, gas and other mineral resources. But experts say transparency and human resources remain challenges.
Phan Phalla, deputy secretary-general of the Supreme National Economic Council, said human resource shortfalls remain, but the government has been transparent with mining.
“We continue to publish every piece of information we have on the Web site, and we have never hidden anything,” he said. “Moreover, we have been trying from day to day to effectively manage revenue from mineral resources. Our aim is to make everything transparent.”
6 comments:
Because of worker will be facing hazardous chemical in relation to mining, what law do Cambodia have in place to protect the workers? What is the rule of engaging and mining in the preserved forest where mining will be taking place.
Whatever you do, you have to think twice. Mining can affect the whole total environmental processes, e.g. the affect of water contamination, or lead to mud slide or other forestry in ruin, like in Indonesia, Pupa Guyanese left with environmental ruined because of this kind of mining. Just remember this our mother land is price less and if you ruin it, we will have nothing left. So, please make sure that this kind of mining is under control, e.g. where there is mining there should part of the land divided into portion, in which it will not be ruined for that area, e.g refill the land after the process, regrow trees to where it once stood, making sure the water can be refilled to be re-used and avoid contamination with other water residue. Please don't let rich foreigners taking advantage of our resources and than dumped them. we are more important than just money alone, do the right thing is the main goal as it is part of our human existence and believing that the "righteous will live forever". This is one of the reasons why education is important, so that no one in the world can take advantage of us. whatever you do just follow with the "Aust way of life" no outsiders influences or taking advantage of its resources and everything has to be abide by the law of its country. Aust
Extraction the natural resource underground is really main concern. The extraction hard mineral gold, copper.. is more concern than oil and gas sector. Why? Oil gas business is require huge capital investment, so only big companies or corporation can do it but for mining Cambodia elite can do it by just invest several hundred thousand dollars or especially backing Chinese, Vietnamese and Korean companies. Those companies never care about the welfare the local communities, they just take and run.
Revenue Management is a major concern especially when oil and gas revenue come. Everything, contract, company especially payment by extractive companies never heard to public. Mr. Phann Phalla stated it really contradict to reality. For example Do you how much Chevron and Petrovietnam paid to government? what kind of payment, where those money go, use for what? The transparency is very low.
i think sometimes it is good to exploit the rich mineral resources in cambodia. just make sure all law is respected and not endanger life.
of course, all exploration must have thoroughly studied first. it's call being responsible. god bless.
Mining is really important issue, most people consider to have benefit from it but it may not in Cambodia with such as a poor law and low legal practice.
Natural resources and indigenous livelihood will getting worse, as most of the cases happen in the world
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