Keneretc has agreed with Council for the Development of Cambodia(CDC) to develop a 60,000ha bio-complex in Cambodia, on April 28, by the arrangement of the Korean Embassy in Cambodia (Ambassador Shin Hyeong-seok), at the official residence of Cambodia’s prime minister Hun Sen, at the presence of relative ministers including Sok Chenda, the Secretary General of the CDC, as one of Kenertec’s resources development project in Cambodia.
The Bio-Complex is to develop scrub-covered land to plant trees, including rubber trees, cassava and jatropha, and construct a power plant burning the biomass fuel produced from the developed land. The project will be the stepping stone for Kenertec’s new renewable energy projects in overseas.
At the project presentation meeting, the Prime Minister Hen Sen expected rapid progress of the project, in addition to the iron ore mine and other mineral exploration and instructed related departments and agencies to support the Project positively.
Kenertec explained about the Bio-Complex Project including the land development of 60,000ha of area, bio charcoal and power plant construction. The Prime Minister Hun Sen expressed special interest in the construction of the power plant that will burn the biomass obtained as the by-products of agriculture and afforestation.
The Prime Minister explained about the cultivation of rice, corn, sugar canes, and coconuts, expecting that the power plant which will make use of the by-products which are wasted presently will provide benefits to farmers, prevent them to leave rural regions and revive regional economy. The Prime Minister gave his order to related ministers to proceed with executive measures.
Through this Project Presentation, Kenertec could secure the land for the Bio-Complex which will be its base for biomass power projects, in addition to the increase in the exportation of power plants and securing the carbon credit.
Presently, Kenertec is executing three projects in Cambodia.
The second one is the Rovieng Iron Mine Development Project.
In April 2008, Kenertec Resources, an affiliate of Kenertec in Cambodia, has agreed with RATANAKSTONE of Cambodia to acquire 85% of the share of the Rovieng Iron Mine.
This mine lot had been under the priority of China which had been exploring the area since 2002. Kenertec’s efforts supported by the positive activities of the Ministry of Foreign Affairs and Ministry of Knowledge and Economy, and the Korean embassy in Cambodia, powered by the recent summit meeting of the two countries, have achieved this fruit which is evaluated as a successful model of securing overseas resources through the cooperation between the government and private sector.
The iron reserve in the mine was reported to be 300 million tons of high quality magnetite and hematite whose concentration is 65% or above, and evaluated to be free of any risk.
In addition, iron ore in the mine lot is distributed from the surface to 150m depth. Especially, high quality hematite ore is exposed on the surface, easy for excavation, and no need of concentration.
Kenertec has completed geological and geophysical surveys. Precise surveys, drilling and feasibility study will be conducted within this year, after obtaining necessary rights for the lot. Mining operation will be commenced from early next year.
A land route is available to the Mekong river, 80km away to the east, on which 200 ton-class barge ships can transport the ore, therefore, transportation means is good.
Kenertec has a mining plan for 2 million tons per year, expecting $150 million of sales (US$80/ton), and $40 million of profit.
The third is the Mineral Exploration Project.
In the last November, Kenertec has obtained the rights for 8 mining lots, including copper, 2 lead/zinc, 3 iron/ manganese, silicon, and 3 jewel mines, in the northern Cambodia. It has dispatched a geological and geophysical survey team and carrying out geological and geophysical surveys since early this year.
The total area of the mine field is 1,520km2, which is about twice that of Seoul. According to the preliminary survey report, a large deposit of minerals has been identified and additional iron and copper ore fields are expected.
The Project Presentation Meeting managed by the Korean embassy in Cambodia will accelerate the project progress, providing Kenertec with a great growth engine, It was an excellent model for energy and resources diplomacy, driven jointly by government and private sectors.
Furthermore, since after the summit meeting of the two countries, in last February when the Prime Minister Hun Sen was invited to the inauguration of Korea’s new president Lee Myeong-Bak, the advancement of Korean businesses into Cambodia for resources development is expected to be accelerated by this Project Presentation, as the fruit of resources diplomacy.
[Project Presentation Meeting at the Official Residence of the Prime Minister Hun Sen]
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