Monday, 25th September 2006 (2327 views)

A Vietnamese gold mine at Bong Mieu has begun producing gold for the first time with "significant" levels of output.

The owners of the mine, New Zealand-based Olympus Pacific Minerals, has announced production levels of around 18.7 kilograms per month which it will ship to refineries in Switzerland before it is available to sell.

Another nearby mine, Phuoc Son, is currently being tested for its profitability but company bosses believe it will produce "a bucket-load of cash" as it could be as much as seven times more profitable than Bong Mieu.

"We will have a feasibility report on Phuoc Son next month and we confidently expect to start gold production there in 2008," said Olympus chairman David Seton.

Foreign investment in Vietnam's mining industry has been bolstered by new legislation and policing that has calmed fears over doing business in the region. The laws are based on similar Canadian and Australian regulations.

 

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