Two Chinese companies have reached a deal to build a steel plant, 400km rail line and a sea port in Cambodia in a contract worth a combined US$11.2bn.

The Cambodia Iron and Steel Mining Industry Group (CISMIG) has contracted the China Railway Group to build a railway to link a planned steel facility in northern Preah Vihear province to a port at the southern commercial island of Koh Kong. The rail link and port would cost US$9.6bn and the steel plant US$1.6bn.

The construction of the steel facility, which will produce 1Mt/y of steel, will take two and a half years, following building commencing in June, according to the CISMIG chairman.

The company will not import raw material for the steelworks but use national iron ore mines in Preah Vihear, Rattanakkiri, Kampong Thom and Stung Treng provinces.

The CISMIG’s plans were approved by the government in 2010.

Source: Daily ‘The Phom Penh Post’, Phom Penh; 1 Jan 2013