Vietnam’s biggest gold mining company fails to strike gold

By Son Thuy   November 29, 2018 | 03:50 pm GMT+7
Vietnam’s biggest gold mining company fails to strike gold
Bong Mieu's creditors vote on the fate of the company. Photo by VnExpress/Son Thuy

Bong Mieu, Vietnam’s biggest gold mining company, should be declared bankrupt, its long-standing creditors have voted.

The company, which belongs to Canadian-invested mining firm Besra Vietnam, has not been able to repay VND1 trillion ($43.24 million) for an extended period of time.

On November 28, the Quang Nam Provincial People's Court held the first meeting of Bong Mieu's creditors, in which they were asked to vote on the fate of the company.

The options were: suspending bankruptcy proceedings, restoring business operations, or declaring bankruptcy.

24 creditors were present at the meeting, but the business that filed the petition with the Provincial People’s Court to open bankruptcy proceedings against Bong Mieu was absent. 

With 14 of 24 creditors at the meeting voting to declare the company bankrupt, a resolution to the effect was passed.

According to a financial report released in November 2017, Bong Mieu's total assets amounted to just VND302 billion ($13.06 million), while its total debt exceeded VND1.2 trillion ($51.91 million), four times its total assets.

Audit results showed that the company’s assets were now worth approximately VND34.8 billion ($1.5 million). However, all of the company’s assets were used specifically for mining operations. These assets are fixed to the land at the gold mine and only provide value if mining is continued, and would not otherwise fetch much money.

Although Bong Mieu's mining activity was expired by March 2016, Bong Mieu continued mining. Only after local authorities discovered the unlawful activity, did they cease operations. 

In May 2017, central Quang Nam Province had proposed that a gold mine operated by Bong Mieu in the locality be closed down.

 
 
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