30% Of Ratanakiri Is Contracted To Foreign Companies For Mineral Exploration

This extract is translated from Khmer press into English…

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 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, 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, the Agri-Bank, 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 [a holding company for the Indochine Group, 'the largest mineral concession holder in The Royal Kingdom of Cambodia' - including Indochine Mining].

“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.

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Ministry told to monitor environment at hydropower plants

Vietnam Business News

The Ministry of Natural Resources and Environment has just been urged by the Government to monitor environmental impact at hydropower projects that are under construction nationwide, said Deputy Minister Nguyen Thai Lai.

Lai said last week that Deputy Prime Minister Hoang Trung Hai had asked the ministry to make closer inspections at hydropower plants and impose heavier fines on developers who fail to reforest after construction or that contribute to disturbing water flow in damned rivers’ lower sections.

According to the Ministry of Industry and Trade, the development of some hydropower projects in Central Vietnam and the Central Highlands has negatively affected the regions, both environmentally and socially.

Some hydropower project developers have reluctantly obeyed environment protection and dam security regulations.

“Developers of all approved hydropower projects must submit environmental impact assessments before they begin construction; however many developers have ignored the requirements,” Lai said, adding that many barely took notice of the Ministry’s appraisal and the potential consequences before building dams and reservoirs.

To protect water sources in the rivers where there are dams, Lai said that the Government had just issued a decree on the overall management of irrigation reservoirs and hydropower plants to reduce negative environmental impacts and pollution as well as to maintain normal river flows.

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Daming the future of villages on the banks of the Sesan river

David Boyle for The Phnom Penh Post

AT about six o’clock in the evening on Monday 28, September 2009, Ru Chom watched helplessly as a wall of water surged through her riverside village, uprooting her house and washing away livestock, trees and wild animals.

“The money that I had earned I spent on the previous house. I hadn’t even finished it yet and now it is upside down. Now I have nothing and no business,” she said, pointing to the remnants of her former home.

Typhoon Ketsana had struck, bringing a torrent of water with it and while the nation’s eyes were fixated on the tragic floods in Kampong Thom province, further north in Ratanakkiri province another catastrophe was quietly unfolding.

Two hours earlier at the Yali Falls Dam, 900 kilometres east in neighbouring Vietnam, desperate officials had opened the floodgates of smaller regulation dams, fearing the dam walls would collapse under intense pressure from the floods.

The dams simply hadn’t been built to withstand the pressure of torrential downpours on the scale of Ketsana, and shortly after the gates were opened Ratanakkiri provincial Governor Pav Hamphan received a phone call, warning him of the impending flood.

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Villagers write to Hun Sen over dam

By DAVID BOYLE AND PHAK SEANGLY for The Phnom Penh Post

REPRESENTATIVES of 74 indigenous minority villages in Ratanakkiri province have prepared a letter calling on Prime Minister Hun Sen to halt construction of a dam that they say will devastate the flow and biodiversity of the Sesan River, endangering the livelihoods of tens of thousands, a plea timed to coincide with the premier’s scheduled visit to the province this week.

The letter is to be delivered to provincial officials today, two days after the launch of a weeklong trade fair in the province intended to facilitate investment opportunities in the so-called “development triangle” of neighbouring border areas in Cambodia, Thailand and Laos.

Meach Mien, project coordinator of the 3S Rivers Protection Network, said Sunday that Hun Sen was expected to arrive in Ratanakkiri this week to formally open National Road 78, though officials could not confirm the details of the visit.

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Closed dams a headache for fishermen

CAMERON WELLS AND THA PISETH for The Phnom Penh Post

River conservation advocates said Wednesday that the closing of dams in Vietnam had caused the Sesan River in northeast Cambodia to become so dry that it was occasionally possible to walk from one side to the other, and that fluctuating water levels were threatening villagers dependent on the river’s fish.

The 3S Rivers Protection Network (3SPN) said in a statement that the water shortage in the Sesan – particularly in the O’Yadav and Andong Meas districts of Ratanakkiri province – had been caused by the Yali Falls hydroelectric dam, located 80 kilometres from the Cambodian border, as well as five other dams in Vietnam.

Sev Doeun, a spokesman for 3SPN, said in an interview that the recent temporary closures of the Yali Falls dam had not only threatened fishermen’s livelihoods, but had also made some of them ill.

“On February 2, they closed the dam and prevented the water from flowing,” he said. “When the water wasn’t flowing, the young people were getting rashes. Also, when it was low, the people found it hard to row and fish.”

Their problems didn’t end when the dam was reopened on Tuesday, he added.

“When the water was low, they had to leave the boats on the riverbed, but when it reopened the boats floated away,” he said. “The fishermen couldn’t find them. The people were [also] scared when it reopened because there could be flooding.”

Concerns in Vietnam
The 3SPN statement follows a forum held at Vietnam’s Can Tho University on February 3 at which experts said they were worried that dams built on the Mekong would disrupt fish migrations “that are critical to the life cycle of 70 percent of the Mekong’s commercial fish catch” in Vietnam.

Experts expressed concern about plans for the construction of 11 further hydropower dams on separate Mekong tributaries, which they said would affect water quality and cause riverbank erosion.

Ratanakkiri provincial officials said they were too busy to comment on Wednesday.

[Ed -Apols for full quote]

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Work for Sesan River dam stokes fears of flooding

SAM RITH AND SEBASTIAN STRANGIO for The Phnom Penh Post

VILLAGERS in Stung Treng province say they are increasingly worried about the likely effects of a US$816 million hydropower dam slated for construction on the Sesan River, as a Vietnamese firm moves to start clearing land around the dam site.

Beang Teang, a representative from Sre Kor village in Sesan district, said local residents had heard the company was currently transporting cement and steel for the dam’s construction and had expressed fears about the impacts – including floods – likely to result from the project.

“We are very concerned about the dam project,” he said. Chorn Pang, from nearby Phlouk village, said he was also worried about the degradation of water quality and the effect of increased flooding on local agriculture.

The 400-megawatt Lower Sesan II dam, a project of the Vietnam-based Power Engineering Consulting Joint Stock Company 1 (PECC1), is set to begin construction next year, said sources close to the project.

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Dams, mines fouling water, say villagers in Stung Treng

VONG SOKHENG reports for The Phnom Penh Post

SEVERAL thousand villagers living along the Sesan and Srepok rivers in Stung Treng province are facing a severe shortage of rice and clean water as a result of polluted runoff from hydropower dam developments and mine explorations, local representatives and environmental activists warned Tuesday.

“We think there are about 50,000 residents in the area, and many of them have already complained about the water becoming muddy, with red, white and blue colours,” said Tek Vannara, programme manager for the Culture and Environment Preservation Association.

A report released by the Sesan-Srepok-Sekong (3S) Rivers Protection Network on Sunday attributed the water’s pollution to hydropower dams located on the upper reaches of the Sesan, both on the Vietnamese and Cambodian sides, and added that mining activities could also be responsible for the recent spike in pollution.

“The closing and opening of the existing hydro-dams in Vietnam, the ongoing construction of other dams, together with gold-mining explorations and other mining activities of companies upstream, both in Vietnam and Cambodia, have caused the current pollutions of the Sesan and Srepok rivers,” the report stated.

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Minister says central highlands dams depleting resources

From Tuoi Tre in the central highlands of Vietnam

Minister of Natural Resources and Environment Pham Khoi Nguyen wrote to National Assembly representative Nguyen Dinh Xuan this week to inform him that surprise inspections at nine hydropower plants in the region last July found all plants in breach of their promises to protect the environment.

The plants have been destroying forests, blocking the natural flow of rivers and polluting the water while those operating the plants have yet to take into account the ecological consequences the facilities will render in areas both upstream and downstream of the plants, Nguyen said.

His ministry has also sent a similar note to the Prime Minister and another asking province governments in the Central Highlands to take urgent measures to protect the environment, one of which would be thinking twice before allowing the construction of new hydropower plants to continue.

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Thousands of households submerged in central region

Less than 20 days after tropical storm Ketsana hit the central region, local people are still suffering from heavy flooding.

Due to the impact of a tropical low pressure front approaching from the East Sea over the weekend, heavy downpours occurred in the central provinces with flood water rising up to second alert level in some rivers in Quang Ngai, Phu Yen and Thua Thien-Hue. Thousands of households in these provinces have been inundated.

Meanwhile, local authorities from Quang Tri to Khanh Hoa said that more than 2,800 vessels with 19,000 fishermen received timely warnings about the tropical depression and have been guided to safe shelter. Thua Thien Hue province plans to evacuate around 21,000 households from danger areas, especially those hardest hit by storm No 9.

*** Heavy rains have blocked off many streets in Quang Ngai city, making it difficult to bring patients to the provincial polyclinic. Currently, flood waters in the province’s rivers have exceeded second alert level and are predicted to continue to rise. The provincial people’s committee has mobilised all available to get ready for emergencies.

*** There is also widespread flooding in Tuy An district, Phu Yen province, especially along the banks of the An Dinh and An Thai rivers. Currently, the provincial border guard is guiding 276 vessels with 1745 fishermen on board to safe shelter.

*** In Kon Tum province, water levels in the rivers of Po Ko, Se San and Dak Bla continue to rise and there will be possible landslides and traffic jams on the Ho Chi Minh Highway section running through the districts of Dak Glei and Dak To.

[Ed-Apols for full quote]

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South Korea’s KTC Cable weighs $700m Ratanakkiri dam project

Chun Sophal for The Phnom Penh Post…

“We welcome all investors who wish to invest or develop hydroelectric dams in Cambodia because we need power for our consumption and for supporting businesses,” he said. “We are ready to issue the licence if we find that the project is economically beneficial, but the company must go through a pre-evaluation process to determine possible benefits and environmental impacts before the construction can be started.”

The 325-megawatt-capacity Sesan Krom III dam would take five years to build following approval, Bun Narith said.

The project is one of 13, located mostly in the west and northeast of Cambodia, that the government is assessing for economic feasibility.
Ministry Director General Victor Zona told the Post in September that the dams could produce a combined 2,000MW of electricity. He said the 420MW Sesan Krom II dam, to be built by Vietnam Electricity on Stung Treng province’s Sesan River, was expected to be approved for construction next year. He said he hoped all 13 would be complete by 2020.

I must also quote the rather illuminating last paragraph of this story…

KTC Cable Co President Kim Myong Il reportedly met Cambodian Prime Minister Hun Sen on October 6 to discuss the company’s plans. The company has already built a cable and wire factory in Phnom Penh and a golf course in Siem Reap province.

It’s a hole in one.

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