Chinese firms to build a railway, a steel mill and seaport for iron and steel mining to facilitate the transportation of Chinese-mined Cambodian iron ore to China?
A “Cambodian” company (a consortium of Chinese metal companies) and a Chinese firm signed a Memorandum of Understanding (MoU) to build a railway and seaport in Cambodia to serve the iron and steel mining industry.
The deal was inked between Zhang Chuan You, general manager of Cambodia Iron and Steel Mining Industry Group (CISMIG), and Liu Ziming, chairman of China Railway Major Bridge Engineering Group under the witnesses of Cambodian Minister of Public Works and Transport Tram Iv Tek and Bai Zhongren, president of China Railway Group Limited.
The memorandum is worth USD 9.6 billion.
CISMIG owns the exploration rights of about 2400 sq. K.m. located in Phreah Vihear Province of the Kingdom.
Zhang Chuan You said at the signing ceremony that the two firms will jointly invest in building a 404 kilometre railway from the mining area in Preah Vihear province to Koh Kong province and a seaport and a steel plant in Koh Kong province to support metal mining industry in Preah Vihear province.
He said the railway will run through the province of Preah Vihear, Kampong Thom, Kampong Chhnang, Kampong Speu and Koh Kong, while the seaport will be capable to handle about 50 million tons of goods a year.
The new line will not connect to the existing Cambodian railway network.
The railway will connect the country’s northeastern part and southwestern part.
The project will begin on July 2013 and will be completed within 4 years.Sources: Phnom Penh Post; The Cambodia Daily
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