Recently, Phuc Son Gold Company Limited has applied for a license to conduct gold exploration and exploitation on an area of 16.09 km2. According to the company’s letter, the exploration of primary gold minerals will be carried out on an area of 16.09 km2 in Phuoc Son District (Quang Nam Province), including: geological mapping, geochemical work, geophysical surveying, clearing exposed outcrops, trenching, surveying, and exploratory drilling.
According to Phuc Son Gold Company Limited, geological mapping, geochemical and geophysical work, clearing exposed outcrops, trenching, and surveying will have a very minor impact on the surface soil and will not affect the forest in the approximately 14.23 km2 deployment area.
Additionally, only the exploratory drilling, consisting of 101 drill holes, will have a direct impact on the natural soil within the remaining 1.86 km2 area across three locations: Tra Long – Suoi Cay, K7, and Bai Buom in Phuoc Duc, Phuoc Xuan, and Phuoc Nang communes (Phuoc Son District). However, the direct impact is on a small area.
However, after conducting an investigation, the Department of Agriculture and Rural Development of Quang Nam Province requested that Phuc Son Gold Company Limited commit to the People’s Committee of Phuoc Son District to only utilize existing roads, paths, and trails to transport machinery and equipment for mineral exploration (after being permitted by authorized agencies to conduct exploration) and not to affect the natural forest or create new roads during the project’s implementation.
Moreover, in the process of mineral exploration, if there is a need to impact the forest, such as cutting down natural forest trees, land clearing, or road construction, the company must follow the proper procedures and submit them to the authorized agencies for approval of the forest land use objective adjustment in accordance with regulations.
Phuoc Son Gold and Bong Mieu Gold Mining Company Limited once extracted approximately 7 tons of gold. Illustrative image
The leaders of Quang Nam Province also requested that the People’s Committee of Phuoc Son District consider the proposed mineral exploration construction plan and provide feedback on Phuc Son Gold Company Limited’s proposal to the Provincial People’s Committee. However, the leaders of the People’s Committee of Phuoc Son District stated that the proposed exploration license area mostly consists of natural forest, accounting for up to 99% of the total area.
As the gold exploration area is mostly within the natural forest area, raising concerns about potential impacts on the headwaters and forest ecosystem, the People’s Committee of Phuoc Son District did not agree with Phuc Son Gold Company Limited’s proposal for exploration and exploitation of primary gold minerals in the aforementioned area.
However, on August 29, Phuoc Son District agreed to Phuc Son Gold Company Limited’s primary gold exploration plan, with additional conditions for forest and natural ecosystem protection.
How does the Company Plan to Proceed with Gold Exploration?
Phuoc Son Gold Factory. Photo: HV
Phuc Son Gold Company Limited (a subsidiary of Besra Group) was established in July 2008 and is headquartered in Thon 4, Phuoc Duc Commune, Phuoc Son District, Quang Nam Province. The company operates in the field of gold mining.
In July 2014, after extracting approximately 7 tons of gold together with Bong Mieu Gold Mining Company Limited (also under Besra Group), Phuc Son Gold Company Limited went bankrupt and ceased operations.
In July 2015, with permission from the authorities, Phuc Son Gold partnered with VACO Gold Joint Stock Company and VietABank to implement a comprehensive enterprise restructuring plan to gradually resume production. In August 2016, the company resumed operations but announced another halt by the end of that year.
Earlier this year, Phuc Son Gold Company Limited was granted an 8-month extension for gold mining at the Dak Sa mine.
According to the 2023 financial statements, as of December 31, 2023, Phuc Son Gold Company Limited recorded short-term assets, inventory, and short-term debt of VND 434 billion, VND 416 billion, and VND 147 billion, respectively.
In 2023, the company’s revenue from sales and provision of services decreased from VND 749 billion to VND 700 billion. However, the company still made a profit, with a net income of VND 50.9 billion (a significant decrease compared to the VND 177 billion profit in 2022).
According to the Investor Magazine, this profit is still insufficient to compensate for the company’s prolonged period of continuous losses. As of December 31, 2023, the company’s accumulated loss amounted to VND 1,138 billion. Additionally, Phuc Son Gold has notable debts related to taxes and insurance.
As of December 31, 2023, the Board of Directors of Phuc Son Gold believed that liquidity risk would not significantly affect the company’s business operations.
According to the latest enterprise registration certificate, as of June 2022, the charter capital of Phuc Son Gold was VND 1,340 billion, contributed by three members. The contributing individuals included: Luong Thi Linh with VND 306 billion (22.836%), Nguyen Thi Mung with VND 700 billion (52.239%), and Nguyen Dac Quynh Anh with VND 334 billion (24.925%).
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