Introductory Remarks by UNDP Resident at International Mining Conference

Introductory Remarks by Douglas Broderick, UNDP Resident

International Mining Conference: Staking a Claim for Cambodia
26-27 May 2010, InterContinental Hotel

Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Kingdom of Cambodia

Excellency Suy Sem, Minister of Industry, Mines and Energy

Excellencies, Ambassadors

Nicolas Rosselini, UNDP Deputy Regional Director for Asia and the Pacific

Ladies and gentlemen

I am very pleased to be here today on this important occasion of the first international Mining Conference in Cambodia. I wish to extend a warm welcome to all of you, and especially to Excellency Hun Sen, Prime Minister, for inaugurating this event.

Today’s event is timely, as Cambodia stands poised to develop its nascent mining industry. Early exploration has shown that the country has exciting geological potential. But, as we are all aware, we have to work wisely to get it right. Ensuring that the right practices and policies are in place – and adhered to – is the only way to responsibly develop Cambodia’s mining industry.

Over the past decade, Cambodia has made significant progress in terms of achieving stability and maintaining peace. As such, the time is right to consider responsibly developing the country’s mining sector. In hosting this conference, the government demonstrates its commitment to learn from international experiences to ensure that revenues contribute to the whole country’s economic and social development.

Already, the government has committed to further improving policy, strategy, laws and regulations relating to mining. This includes a concrete plan for the development of the minerals sector, which includes training, coaching, investment in new equipment and education. In addition, it has committed to aligning mining laws and regulations with international best practices to encourage international mining companies to work in Cambodia.

Ensuring the highest, and most transparent standards are in place is both an ethical and business necessity.  Policies and practices that meet international standards will bring greater international interest. As clearly outlined in the Mining Guide to Cambodia, produced by the Ministry of Industry, Mines and Energy and which you have in your kits: “The government clearly recognises that good policy supported with clear strategy, coupled with sound mining law and fair regulation, will demonstrate that the Kingdom is a good mining destination”[1].

We have examples before us of countries that have achieved sustained economic growth from resource wealth and channeled their new revenues into increased employment levels, as well as improved education and health.

Indonesia, for example, is the world’s biggest exporter of thermal coal, the second-largest tin producer, and seventh in gold production. According to a 2008 mining association report, mining products account for approximately 4% of total Indonesian GDP and more than 20% of export revenues[2]. The industry also makes significant contributions to regional and community development.

In Chile, thanks to mining, poverty fell by almost half between 1990 and 2003 – and by more (60%) in the key mining region of Antofagasta. In Botswana, diamond mining has transformed the country over the last 20 years from one of the world’s poorest to become one of Africa’s most prosperous and peaceful countries[3], with a GDP per capita of $13,100[4]. In neighbouring Laos, mining accounts for 37.4 % of total exports and 9 percent of GDP. New businesses linked to the Sepon mining project employ between 35,000 and 45,000 people[5].

In Cambodia, we have an opportunity to ensure that the mining sector contributes to poverty reduction and advances progress towards the Cambodia Millennium Development Goals (CMDGs), by making sure principles of social and environmental protection, transparency and accountability are in place.

Excellencies, ladies and gentlemen

It is important that we view this conference as one step in a longer process of ensuring appropriate mechanisms are in place to develop the sector responsibly. Most importantly, this means that environmental and social protection is written into all rules and regulations, so the legacy of this country’s mining sector is positive.  Since 2005, UNDP has worked with the government, including the Supreme National Economic Council (SNEC), the Cambodian National Petroleum Authority and the Ministry of Economy and Finance to help develop the country’s Extractive Industries sector. We would like to express our continued commitment in working with the Ministry of Industry, Mines and Energy to host this important conference.

With the right systems in place, potential resource wealth garnered from the mining sector will contribute to the country’s economic and human development. This will also assist to ensure that those living near mines are not adversely affected, but can gain from employment opportunities; and that the surrounding environment is protected and preserved.

I look forward to tomorrow’s session on regional and international country experiences, where we will learn from the lessons of Indonesia, Mongolia and our neighbours, Vietnam and Laos. I am also pleased to note this morning’s session on governance and the mining law, where we will look closely at international best practices in terms of legal frameworks and policy, as well as how best to manage mineral exploration in Cambodia to strive to ensure the highest standards of accountability and transparency are met.

Again, I thank you all for your attendance, in particular His Excellency Prime Minister Hun Sen for kindly inaugurating the conference. I would also like to thank the Australian Ambassador Margaret Adamson, AusAid, and the Cambodian Association of Mining and Exploration Companies, for their support to both the Ministry of Industry, Mines and Energy and UNDP in hosting this event. I am sure that we will all learn from the wisdom and expertise of the event’s impressive list of speakers.

The minerals are in the ground. It us up to us to work together to ensure that all Cambodians can stake a claim in the potential revenues from these natural resources, while ensuring that the environment and communities are protected and the country’s economic development is enhanced.

Awkun Charan.

[1] Kingdom of Cambodia:  A Guide to the Mining Sector, MINDECO, 2010
[2] In 2007, mineIndonesia 2008: 10th annual review of trends in the Indonesian mining industry, Indonesian Mining Association, the Indonesian Coal Mining Association and PricewaterhouseCoopers, December 2008
[3] International Council on Mining and Metals
[4] CIA World Factbook
[5] 2004-06 Mining Sector in Lao, MINDECO