A miner works in a gold mine in Phuoc Son district in the central Quang Nam Province. Viet A commercial joint-stock bank agreed to guarantee for US$14.8 million tax debt to Quang Nam Province. File Photo

QUANG NAM (Biz Hub) — Commercial joint-stock Viet A bank will be a guarantor for Phuoc Son Gold company in a tax debt of VND334 billion (US$14.8 million) to central Quang Nam Province's tax department.

Manager of Viet A bank's branch office's manager, Hai Dang confirmed to Biz Hub that the bank would help Phuoc Son company – a company under a Canadian-Australian joint-venture corporation Besra Gold Inc – to deal with the debt in 12 months from this August to next year.

He said the bank had sent the guarantee proposal to the provincial taxation agency last month and the payment plan will start from August with around VND28 billion each month.

Head of provincial Tax Department Ngo Bon, said the Quang Nam Province's planning and investment department would soon approve the guarantee deal to allow the re-operation of gold mines of Phuoc Son Company.

However, Bon said that another company of Besra, Bong Mieu Gold Mining Company, which had been in debt of VND100 billion in tax, was shut down as its operation licence had expired.

As scheduled, Phuoc Son Company will reopen its gold mines in Phuoc Son district with approval from the provincial planning and investment department.

In 2014, Phuoc Son Gold Company owed approximately $19 million to contractors, the bank and the government.

Besra Vietnam had to suspend operations at its Bong Mieu mine from July 18, 2014, and Phuoc Son mine from July 22, 2014. after bank accounts were frozen in April 2014 by the Quang Nam Tax Department due to the debt.

Besra has invested more than $115 million in Bong Mieu and Phuoc Son (Besra Viet Nam) in Quang Nam Province.

Besra Viet Nam's gold production from its two plants reached 60,187 ounces last year, according to officials. – VNS