Two licensed companies in Mondulkiri province have produced nearly 13 tonnes of gold from their operations as authorities announced a campaign to stop the rapid expansion of illegal gold mining activities in certain areas.

At a press conference on November 6, organized by the ministry and entitled “Crackdown on Illegal Mining”, Ung Dipola, Director General of Mineral Resources at the Ministry of Mines and Energy, announced that Renaissance Minerals (Cambodia) Ltd – an Australian company – based company – produced 807 gold bars with a total weight of 12,537 kg as of November 3.

He also noted that Rong Cheng Industrial Investment (Cambodia) Co Ltd – a Chinese company – produced 12 bars weighing around 22.28kg.

He stated: “Renaissance Minerals operations are progressing as planned. However, Rong Cheng encountered problems when the underground excavations began, as their tunnels began to leak water after intersecting with the illegal mining tunnels. This has severely affected their production cycle.”

According to Dipola, the ministry is committed to ending illegal gold mining activities and promoting legal operations as licensed businesses provide significant benefits including job creation, environmental protection, community development and contributions to national income.

Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on November 7 that while gold mining enterprises do not currently generate substantial non-tax revenue (special taxes) for the economy, they have helped create jobs and technical training for skilled workers.

He noted that some companies do not have the capacity to extract gold with 99% purity, which requires them to process the gold abroad, resulting in the loss of potential revenue for the country.

He stated: “If all investment companies could mine gold at 99% purity, it would be very beneficial, allowing the government to collect even more taxes.”

Commenting on international gold market prices, which have risen in recent years, Vanak noted that Cambodia, as a country with gold resources, is definitely benefiting from this trend.

However, he called on the government and investment companies to carefully weigh the potential environmental and health impacts on humans and animals, stressing the importance of addressing these negative effects.

Lor Vichet, vice president of the Cambodia Chinese Commerce Association (CCCA), noted that as international gold prices rise, so does the tax revenue collected by the government from gold mining companies.

He suggested that investing these revenues in infrastructure development or sending Cambodian students abroad to study mining and gold extraction techniques would greatly benefit the country, allowing it to operate independently in the future.

“The government can use tax revenue from mining businesses to develop human resources, build infrastructure and invest in the energy sectors to attract more foreign investment to Cambodia,” he said.

Currently, 10 companies in Cambodia hold gold mining licenses. These include Renaissance Minerals (Cambodia) Ltd and Rong Cheng Industrial Investment (Cambodia) in Mondulkiri Province; Xinshan Industrial (Cambodia) and Delcom (Kampuchea) Pte Ltd of Preah Vihear; Jiangxia Mining Energy Development Co Ltd of Kratie; Late Cheng Mining Development Co Ltd and Cambodian K88 Industry Co Ltd in Kampong Thom; Phu Yang (Cambodia) Co Ltd of Battambang; and Oriental Wisdom Consulting Services (Cambodia) Investment Co Ltd and Mesco Gold (Cambodia) Ltd in Ratanakkiri.

On November 6, the ministry’s secretary-general Ung Ieng called on citizens involved in illegal gold mining, especially in Mondulkiri, to stop their activities immediately.

He pointed out that illegal mining has resulted in significant loss of national resources, public health and safety issues and environmental damage.

The country began official gold mining in June 2021 with Renaissance Minerals. By the end of 2023, the country had mined about 9.6 tonnes of gold – about 1,126 bars – generating about $15.5 million in non-tax revenue.