More Than 30% of the Size of Ratanakiri Is Contracted to Foreign Companies for Mineral Exploration, Affecting the Environment

More Than 30% of the Size of Ratanakiri Is Contracted to Foreign Companies for Mineral Exploration, Affecting the Environment

The Mirror, Vol. 14, No. 678

“The rich natural resources in Cambodia, especially gold, gems, and diamonds, attract the attention from foreign investors to invest in mining in Cambodia, and the leading companies are the OZ Company and Southern Gold [3] company of Australia. Also, some Yuon [Vietnamese] companies that do not make their identity known, operating illegally on gold exploitation, siphoning national resources out from Cambodia.

“The Yuon press quoted the director of the Saigon Jewelry Company [4], the biggest gold company in Vietnam, Mr. Nguyen Thanh Long [Nguyễn Thành Long], as having said that the company had shown its plan to the Yuon government to ask for permission to invest in factories in Cambodia and Laos. If this company earns the approval from the Yuon government or from the governments where it plans to invest, this company will establish gold manufacturing factories abroad not later than in late 2010.

“Yuon officials said that this company will start its production with the trademark SJC in Laos this year, investing in Laos first, before seeking to create factories and branches in Cambodia. Some other Yuon companies investing in gold trade, such as the Sacom Bank [5], the Agri-Bank [6], and the Hun Huang [? - phonetic], and have opened representative offices in Cambodia and are strengthening and expanding their business operations.

“Yuon investors see huge benefits from investments in Cambodia and in gold exploration in the northeast of Cambodia; they have sent skilled workers to come to conduct illegal exploitation with the backing from military officials or civil authorities. Gold deposits in the northeast of Cambodia are being exploited illegally by traders, not leading to national income.

“Recently, Yuon traders had sent a barge on the Sekong river to Siem Pang district in Stung Treng, loaded with gold filtering machines, in an attempt to conduct illegal gold exploitation. The local authorities blocked the barge for some time to clarify questions about legal documents, but they will likely let it go after an intervention from the provincial level.

“Also, citizens in the Veun Sai district in Ratanakiri are worrying about the impact on water quality in the Sesan river, as Chinese gold miners are drilling to explore gold ore on Pang Island. They said that the Chinese company has been operating for two months, employing more than 10 Khmer workers, using two machines for drilling, and disposing waste water into the Sesan river, from which citizens consume water for their daily living.

“Citizens complained that at present, the water in the Sesan river was dirty and can no longer be used, but the local authorities do not intervene. Pang Island in the Sesan river has an area of 200 meter in length and 100 meter in width, and there live Krueng ethnic minority tribespeople, who have settled there since long. Now they are seriously affected by the gold exploitation by the Chinese company Indochine Resources [7] [a holding company for the Indochine Group, 'the largest mineral concession holder in The Royal Kingdom of Cambodia' - including Indochine Mining [8]].

“Officials of the Ministry of Industry. Ratanakiri Department, said that the Ministry of Industry provided a license to Indochine Resources in November 2009, to explore metal ore on an area of 200 square kilometers. So far, no companies have been registered also to exploit resources. All are just conducting explorations, and any exploitation in the past was illegal.

“The exploitation means that a company can gain benefits from the ore, whereas exploration means just to drill to find ore samples for experiments, but some companies colluded with expert officials and the authorities in charge to conduct exploitation while they only have exploration rights, so they gain benefits without paying tax to the state on their profits. Such anarchy occurs at the northeast of Cambodia, and some officials and members of the authorities are happy to collect personal benefits from it.

“According to expert officials, in Ratanakiri more than 3,000 square kilometers, or 30% of the size of the province, have been contracted to 19 companies to conduct explorations. Those companies deal with quarries, or they are construction companies, sand companies, gems companies, granite companies, and metal companies etc., and 10 companies have not received exploitation license. Citizens complained that some activities of those companies violate the land they own, and there is also deforestation.

“Civil society officials often voiced concern relating to the issues that some mineral exploration companies do not obey the laws, and that the requirements from relevant ministries and the exploitation by some companies affect the environment and the living condition of citizens. Expert officials never take restrictive actions against these companies doing exploitation, though citizens from the region had reported about improper activities of those companies.

“Since private companies started anarchic mine exploration in Cambodia without any interception by expert officials, they have extracted almost everywhere underground mineral deposits, but so far, no money has been paid into the national budget. Officials of civil and international organizations frequently warned that the improper management of mineral resources might seriously damage Cambodia. Therefore, the government must create laws to carefully control mineral resources and income.” Moneaksekar Khmer, Vol.17, #3962, 19.8.2010

This article was first published by The Mirror, [9] Vol. 14, No. 678 - Thursday, 19.8.2010
Have a look at the last editorial - you can access it directly from the main page of The Mirror. [9]

Norbert Klein is the Editor of The Mirror [10] – The Mirror is a daily comprehensive summary and translation of the major Khmer language press - More about The Mirror [11]