Mining and Natural Resources in Cambodia: Investment Potential and Sector Outlook

Cambodia possesses a broad spectrum of mineral resources that remain largely underexplored, offering significant untapped potential for development. While the mining sector has historically played a modest role in the country’s economy, its importance is growing as the government seeks to diversify beyond agriculture, garments, and tourism.

In 2024, Cambodia’s mining sector generated nearly US$100 million in non-tax revenues, marking a sharp 80 percent increase over 2023, according to data from the Ministry of Mines and Energy. This growth reflects a renewed policy push and increased production from flagship operations such as the Okvau Gold Mine.

From post-conflict recovery to commercial mining

The evolution of Cambodia’s mining sector is deeply shaped by the country’s complex political history. During decades of conflict and instability, resource exploration was severely limited and unstructured. Small-scale, subsistence mining activities, often informal and lacking regulation, characterized the industry through the 1980s and early 1990s. It wasn’t until the early 2000s that international interest began to return, supported by legal reforms and exploration licensing frameworks.

Key milestones include the adoption of the 2001 Law on Mineral Resource Management and Exploitation and the subsequent entry of foreign mining companies during the commodities boom of the 2010s.

Cambodia’s known mineral wealth and geological promise

Cambodia harbors a diversified range of mineral resources, many of which remain underexplored but are beginning to draw increased attention from international investors. Recent geological assessments have confirmed the country’s strong subsoil potential across both metallic and industrial minerals.

In the southwest, bauxite deposits are particularly significant. Exploratory work by Aluminum Development Cambodia has confirmed an estimated 350 million tons of proven bauxite reserves. A proposed 16-million-ton-per-year operation is under review, backed by approximately US$800 million in committed capital. This includes plans for dedicated processing facilities and supporting infrastructure.

Iron ore reserves have been confirmed in northern Cambodia, particularly around the Phnom Dek area in Preah Vihear Province. These deposits are estimated at 5 to 6 million tons of high-grade ore. In 2023, Cambodia exported US$55.2 million worth of iron ore, placing it 37th globally by export value.

Manganese resources in Kampong Thom Province amount to around 120,000 tons. While modest, they serve domestic demand in construction and manufacturing.

The gold segment continues to deliver the most headline-grabbing results. In the first ten months of 2024, Cambodia produced over 13 tons of gold, up from 9.5 tons in 2023, driven by Emerald Resources’ Okvau Gold Mine and other ventures. Okvau alone holds 910,000 ounces of proven and probable reserves and achieved a record 114,076 ounces in 2024 production. Based on an average gold price of US$2,000 per ounce, the mine’s output equates to approximately US$228 million in export value.

Industrial minerals are also expanding. Limestone and marble are actively extracted, while salt production reached 100,000 tonnes in 2020. Processed marble exports exceeded five million square meters in 2024. This diversity is supported by a rich geological framework, which the government is seeking to document and digitize further.

Legal and regulatory framework governing the sector

The sector is regulated by the 2001 Mining Law, overseen by the Ministry of Mines and Energy. Cambodia distinguishes between exploration and industrial mining licenses. As of 2022, the country had issued 435 quarry licenses, 17 industrial mining licenses, and 30 exploration licenses.

Licensing timelines remain opaque. Exploration licenses are valid for two to three years and renewable, while production licenses may last up to 21 years. Investors cite procedural delays and lack of inter-agency coordination as key concerns.

Infrastructure gaps and logistical challenges

Cambodia’s mining sector is constrained by underdeveloped infrastructure. While national electrification now covers 99.2 percent of households as of 2025, power reliability in remote provinces like Mondulkiri remains an issue. Industrial electricity rates range between US$0.18–0.21 per kWh—high by regional standards.

Transport limitations are more severe. Mineral-rich regions rely on unsealed rural roads vulnerable to monsoon damage. Rail access to ports remains limited. The Sihanoukville Autonomous Port handles most mineral exports but faces capacity constraints. Planned infrastructure projects, including new expressways and potential rail upgrades, could ease these bottlenecks over time.

Policy incentives and growth potential for investors

Cambodia offers a competitive fiscal regime for mining investors. Qualified Investment Projects (QIPs) receive:

• Corporate income tax holidays of 3 to 9 years
• Exemptions on import duties and VAT for machinery and equipment
• Accelerated depreciation and exemptions from prepayment and minimum tax
• Lifetime land leases and unrestricted foreign ownership

Compared to Indonesia or the Philippines, Cambodia’s investment terms are highly flexible. However, data on mining-specific FDI remains limited, making sector targeting more difficult. Publishing clearer metrics and investment outcomes would support stronger capital inflows.

Cambodia in the ASEAN mining landscape: A regional comparison

Cambodia’s mining sector remains small compared to its neighbors, but it holds clear niche advantages.

Indonesia derives over 10 percent of its GDP from mining, with massive coal, copper, and nickel output. The Philippines earned US$9 billion from mineral exports in 2022. Laos’ mining sector contributes roughly 7–10 percent of GDP, while Vietnam’s remains state-dominated and less open to foreign capital. Thailand maintains mature operations in industrial minerals but banned new gold mining in 2017.

In this context, Cambodia’s appeal lies in greenfield potential, 100 percent foreign ownership, and emerging success stories like Okvau. Gold exports approaching US$230 million and royalty revenues above US$35 million show that resource monetization is underway.

Outlook: A Sector on the verge of transformation

Cambodia’s mining sector is positioned for accelerated growth, supported by favorable global commodity trends and the government’s renewed focus on economic diversification. As outlined in the Pentagonal Strategy Phase I, the country is targeting 7 percent annual GDP growth and a reduction in poverty to below 10 percent by 2030, objectives in which mining will play a central role.

Gold, which has already crossed US$3,000/oz in 2025, is projected to average US$3,675/oz by Q4 and may exceed US$4,000/oz by 2026, according to JP Morgan, Citi, and Goldman Sachs. These prices would significantly boost Cambodia’s export revenues, potentially pushing annual gold earnings beyond US$250 million.

Beyond gold, rising regional demand for base metals and industrial minerals presents further upside. If Cambodia continues to improve infrastructure, streamline permitting, and enforce environmental standards, it could emerge as a reliable mid-tier mining destination in ASEAN, particularly for greenfield exploration and mid-scale operations.

The fundamentals are in place. The coming years will test whether Cambodia can turn mineral wealth into sustained, responsible development. Investors watching for jurisdictional risk, cost efficiency, and ESG alignment will find that Cambodia now merits closer attention than ever before.

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