Reported mineral exploration in national park raises concerns

Thursday, 05 June 2008
Written by Cheang Sokha and Tracey Shelton
The Phnom Penh Post

An Australian company exploring for minerals in Virachey National Park is reported to have asked villagers to build helicopter landing pads in the forests of the ecologically rich, ASEAN heritage-listed site, highlighting fears that Cambodia's nascent mining sector will undo conservation efforts in the country's fragile environment.

Yang Ke, 48, a member of the Proeu minority, said the request was made last month as he guided representatives of Indochine Resources Ltd., on a visit to the park, which straddles the borders of northeastern Ratanakkiri and Stung Treng provinces.

"We spent two nights traveling in the jungle from my home to the exploration site," Ke told the Post in an interview at his bamboo house in Taveng district, about 50 kilometers from the Ratanakkiri provincial capital, Banlung.

He said the company officials had asked villagers to clear four different landing sites for helicopters because of the difficulty of traveling through the thickly forested park.

An Indochine Resources spokesman, who asked not to be named, said the exploration work was taking place under a permit granted by Ministry of Industry, Mine and Energy in 2007, and with the permission of the Ministry of Environment.

The spokesman said that while he could not say when mining operations might begin, partly because of the difficulty of access, the company recognized that the project would affect the environment.

"But we will try to minimize the impact and our project is strictly monitored by officials at the park."

Environmentalists, however, worry that mining in the park could seriously damage the Se San River and its tributaries.

“The river system in Virachey is one of the most pristine and unique in all of Cambodia,” said David Emmett, the deputy regional director of Conservation International, which has conducted surveys in the park for the last three years.

"The river contains species that don’t exist anywhere else on earth," he said.

"If runoff from mining was to change the water's pH level the whole ecosystem could collapse.”

Emmett said camera traps and surveys have identified populations of rare otters, turtles and frogs, endangered water lizards and pythons and fish species previously unrecorded in Cambodia.

After stripping Cambodia of almost all its natural resources, now come the mining invasion ... when will it stop?

Cambodia Braces for a Mining Invasion

21 September 2007
Douglas Gillison
Asia Sentinel

Some of Indochina’s last protected areas are being opened to mineral extraction with few protections in place

Cambodia’s once-abundant natural resources, whose timber reserves already were stripped to fund its disastrous civil war, are ripe for more exploitation. Saddled with a weak and often corrupt government, it is now in danger of seeing its mineral rights looted, as even officials charged with protecting the environment say the time has come to sacrifice some protected areas to mining development.

Environment Minister Mok Mareth said in a recent interview that a balance must be struck between conservation and development, hinting that the balance would fall on the side of development. "There are too many people worried that it may destroy all the resources, all biodiversity, all ecosystems," he said. "Of course, it's right. It destroys some part, not all. We have to understand that."

In considering exploitation, the ministry obtains binding guarantees that companies will respect the environment and not harm indigenous rights, he claimed, adding that Cambodia was in the process of changing from "100 percent conservation" to a system that can accommodate development.

"We're in the phase of what we call transition," he said.

The issue of how that transition is handled came to the fore in recent weeks when, through a little-known Australian firm, Indochine Resources, two flamboyant Australians won the right to explore for unnamed minerals in 180,000 hectares, or 54 percent, of Cambodia’s Asean-heritage listed Virachey National Park. The concession itself was as big as 254,600 hectares.

Both the Cambodian Environment Ministry and the World Bank, which has funded the management and conservation of the park to the tune of nearly $5 million, were caught by surprise.

The two are geologist Jeremy Snaith and David Evans, who in April became known across Australia as the “bananas in pajamas” after their nude antics aboard a Sydney-Abu Dhabi flight and subsequent arrest for sexual harassment and drunkenness forced them out of their company, Jupiter Mines. That an area so large and so sensitive was now in the hands of men ensnared by a drunken slapstick scandal gave pause to some. The World Bank, for one, announced it was seeking clarification from the government.

“[W]e continue to encourage the government of Cambodia to make good choices when they pick business partners… to ensure that their partners are committed to socially and environmentally responsible development,” a World Bank official wrote in an email.

A rumor in Phnom Penh held that a more reputable Australian mining firm also seeking the concession had been beaten out by Indochine Resources. The case is only one chapter in an unfolding story in Cambodia, which devotes a surprisingly large share of its territory to conservation. According to a 1992 review by the UN's World Conservation Monitoring Center, Cambodia's set-aside level of 26.3 percent was far higher than the land reserved for conservation in Thailand (16.3 percent), the US (11 percent), Indonesia (10 percent) or Australia (5.3 percent).

The country’s 32 environmentally protected areas, such as Virachey National Park, cover more than a quarter of its landmass. These areas also contain gold, copper, chromium and bauxite, creating the potential for Cambodia’s regulators to see dollar signs without foreseeing desolation.

Critics question whether Cambodia has the means, or even the desire, to control how and where mines are dug, or to determine whether the environmental damage they cause is acceptable. Global Witness, the environmental watchdog, has contended that the country’s natural resources until now have formed little more than a cash cow for the country’s elite and that exploiting Cambodia's resources in the absence of the rule of law will not necessarily lead to development or increased prosperity.

For their part, government officials have in recent months repeatedly and rather ominously from the point of view of environmentalists, said that riches to help lift Cambodia out of poverty should not be beyond reach simply because they lie buried beneath the turf of an endangered species.

Environment chief Mok Mareth maintained that the 47,845 square kilometers of land devoted to protecting the environment are hardly sacrosanct.

Critics who feel his ministry is weak and routinely shoved aside in favor of more muscular industrial interests simply do not understand, he added.

"When we developed that," Mok Mareth said of Cambodia's system of protected areas, first created in 1993 around the time that the UN mandate period ended, "we didn't know all the potential of our natural resources, our richness. So we need to have the exploration.”

Cambodia is hardly different from much of the rest of the world, where many protected areas are also routinely open to mining. Authorities permit mining in about 78 percent of South Australia's 332 protected areas, according to the state's regional government.

In Cambodia, however, the matter comes down to a question of management. At a 2004 workshop, Environment Ministry officials and conservation NGOs found that mining was already occurring in nine protected areas and threatening 13 of them.

Since then, the government has lifted a prohibition on mining in protected areas and has invited companies like Indochine Resources as well as BHP Billiton, Southern Mining Company and Oxiana Ltd to explore for minerals sometimes in parts of sanctuaries believed to be crucial for protecting biodiversity.

All four companies have promised to be good to Cambodia's environment. But such deals are being struck even though many of the country's protected areas are under-funded, understaffed, lack comprehensive management plans and most importantly, do not have zoning to protect their most environmentally sensitive areas. These problems, outlined by the 2004 workshop, persist to this day, NGOs say.

Seng Teak, country director for the Worldwide Fund for Nature, said last week that certain core zones must be protected from mining, as the viability of other ecosystems depends on them.

It's called a core zone, he said, "You can't touch that area from a biodiversity point of view."

Mok Mareth said, however, that a consensus with other ministries had emerged that even future core zones were not necessarily off limits for exploitation.

"We got already the reaction, even from the Ministry of Tourism, Ministry of Industry, Ministry of Agriculture and others," he said.

"They also raised the concern: If I accept conservation of this area, a core zone, if we can find a billion dollars for the mining there, how can we exploit these millions of dollars in this area?”

“We did not define any core zones to date," he added.

However, Seng Teak said Cambodia is simply not yet ready to deliver its protected areas into the hands of mining companies.

"I think it may be too early to bring the companies in to invest in the protected areas. It has to have clear zoning," he said. "The right to use the resources should be based on a clear land use plan first."

In weighing development against conservation, the government is poised to make a fateful decision, Seng Teak said.

"The crossroads is balancing the two, because the government sees economic development as a priority and conservation second," he said. "It's a challenge to make that decision."

Bananas head for jungle in Cambodia

July 25, 2007
Jamie Freed
The Sydney Morning Herald (Australia)

JETSETTING Jupiter Mines directors David Evans and Jeremy Snaith certainly get around.

The pair - dubbed "bananas in pyjamas" after inappropriate antics in first class on a flight to Abu Dhabi earlier this year - have turned their attention to the Cambodian jungle.

Through a private company called Indochine Resources - in which Jupiter is a shareholder - Mr Evans and Mr Snaith have gained rights to roam among elephants, tigers and leopards as they pick up rock chip samples in the ASEAN heritage-listed Virachey National Park.

One of their fellow Indochine directors is Robert Coghill, a fellow first-class passenger on the infamous Etihad Airways flight. He provided an affadavit in support of Mr Evans and Mr Snaith.

Last month their lawyer, Ross Hill, said he was "unaware of any connection" between Mr Coghill and his clients. But last night Mr Hill could not reach Mr Evans to confirm.

The fourth and final Indochine director is Chris Eddy, an Australian based in Dubai.

Mr Evans and Mr Snaith were on their way to Dubai when they were arrested at the Abu Dhabi airport. Mr Hill said the visit was in part to attract investors to Indochine. It is believed Mr Evans and Mr Snaith have both travelled to South-East Asia since receiving suspended sentences from an Abu Dhabi judge.

The Cambodia Daily recently reported Indochine - previously named Battle Mountain Minerals - had signed a memorandum of understanding to search for minerals in Ratanakkiri province.

A geologist at Perth's Great Australian Resources, which has exploration projects in Cambodia, said a MOU would allow a company to survey an area and take rock chip samples but the concession would have to be converted to an exploration lease before drilling could take place.

The World Bank has been pushing for the Virarchey National Park to be protected from mining, having provided $US1.91 million ($2.16 million) in loans and $US2.75 million in grants to an environment ministry program since 2000.

World Bank spokeswoman Pichaya Fitts said the Cambodian government was expected to pass a law imposing a strict ban on mining in core areas of the park later this year.

Because very little minerals exploration has been conducted in Cambodia it has been deemed a highly prospective region.

Oxiana hit 33 metres at 9.9 grams per tonne of gold at an exploration project there and its annual report said "field assessment of other areas and projects of interest is ongoing".

Acting Jupiter chief executive Rob Benussi said his company previously had a direct investment in some of the Indochine leases but had converted the holding to shares in the unlisted company. In its March quarterly report, Jupiter said it had invested $120,000 in seed capital.

Meanwhile, Mr Snaith has sold another $28,000 of Jupiter shares. Jupiter is holding a meeting to vote on ousting Mr Evans and Mr Snaith as directors next month.