China Steel Firms Team Up To Mine in Preah Vihear

Four of China’s largest steel producers have formed a joint venture to mine for iron in Preah Vihear province, news reports and a government official said Thursday.

According to an agreement sign­ed Wednesday in Beijing, Chi­na’s largest steel producer, Baos­han Iron and Steel, or Baosteel, will own 20 percent of the Cambodian concern, Wuhan Iron and Steel Group will own 50 percent, while the remainder belongs to Anshan Iron and Steel and Shougang Group, the Interfax China news agency reported.

Citing financial news reports, the official Xinhua news agency also said Thursday that the companies hope to recover an estimated 200 million tons of ore from the province.

An official at the Ministry of Industry, Mines and Energy in Phnom Penh said Thursday that the reported ore deposit estimates were premature.

“I do not dare to say how much iron there is because now they are just starting exploration,” Secretary of State Chea Sieng Hong said. “Who­­ever said 200 million tons of ore, where do they get this number?”

Chea Sieng Hong said a license was issued in April for exploration around Rovieng district’s Phnom Dek mountain, which he said is not an environmentally protected area.

Provincial officials could not be contacted Thursday and calls to the Chinese Embassy were referred to an official in the economic and commercial affairs office who could not be reached.

In March 2005, Prime Minister Hun Sen expressed support for a joint venture between China Na­tional Machinery & Equipment Corp and the Cambodian firms Pheapimex Group and Ratanak Stone Cambodia Development Co, Xinhua reported at the time. The trio were to begin exploration for iron in Preah Vihear and construct a steelworks if reserves were sufficient, the agency reported.

Bai Fang, head of media relations for Wuhan Iron and Steel Group, told Interfax China on Thursday that the start of ore ex­traction depended on a “due diligence” report, which he expected to be completed soon.

“The result of the due diligence matters considerably, and if it turns out to be ideal, this will enable further collaboration between the four companies,” he was quoted as saying.

Chea Sieng Hong maintained that the environment around the proposed mine in Preah Vihear was not currently in danger.

“Now it is still the stage of studying,” he said. “The stage of studying cannot affect the environment.”

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