First Cambodian industrial mining licence issued to Angkor partner
VANCOUVER (miningwekly.com) – Cambodia has issued the first industrial mining licence under its new regulatory framework, signalling the final step for India-based Mesco Gold to bring its Phum Syarung gold mine into production.
The permit covers 12 km2 of the mine, on which Canadian explorer Angkor Gold holds a sliding-scale 2% to 7.5% net smelter return. Angkor discovered the deposit in 2011 and Mesco submitted the mining application in January 2014.
"With the grant of the first fully approved mining licence in Cambodia to Mesco Gold, a new stage in the evolution of the mining industry in the country has begun, which so far was limited to exploration only,” stated Mesco Group chairperson JK Singh.
"This is a new era for Cambodia and sets the stage to further the development of a world-class mining sector,” added Angkor chairperson and CEO Mike Weeks.
The issuance of the mining licence by the Cambodian Mining and Energy Ministry also triggered the final payment of $500 000 from Mesco to Angkor under the 2013 definitive purchase agreement.
The Phum Syarung underground mine, in the north-eastern province of Ratanakiri, will start with initial capacity of 500 t/d, with a recovery rate of 85%.
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