Investment in mining operations falls sharply

[PHNOM PENH POST]

Guangxi Nonferrous Metal Group invested $21.95 million in the construction of a steel processing plant, the data shows. The Chinese company planned to invest as much as  $500 million in Preah Vihear province, China’s state-owned Xinhua news agency reported in November.

China’s Xing Yuan Kang Yeak Co invested about $8.5 million in gold mining and Phu Yang Co, a Cambodian-Vietnamese joint venture, invested $800,000, according the data, which does not reveal the location of the projects.

New mining investment in Cambodia fell more than 71 per cent year over year in 2011, according to the data.

A $75 million investment in copper mining from Nim Meng Group, a Taiwanese-Cambodian joint venture, buoyed the 2010 figures.

Richard Stanger, president of the Cambodian Association for Mining and Exploration Companies, confirmed yesterday that international companies had reduced exploration in Cambodia as they developed other projects.

“There was a drop-off in exploration activity last year. Some companies were focusing on exploration in other countries,” Stanger said, adding that he expected signs of a  turnaround this year.