Thai govt ‘close to agreement’ to reopen gold mine

[webfact]

Govt ‘close to agreement’ to reopen gold mine

By PRATCH RUJIVANAROM 
THE NATION

 

File photo: gold mine

 

BANGKOK: -- NEGOTIATIONS to end the conflict between the Thai government and Australian gold mining conglomerate Akara Resources are progressing well, with the possibility that the company’s closed mine in Phichit will reopen.

 

Akara Resources stated last Thursday that it was negotiating with the government, and there was a likelihood of a “a win-win solution” in the dispute that began when Thailand suspended all gold-mining operations

nationwide, which the company saw as a violation of the Thailand-Australia Free Trade Agreement (TAFTA).

 

In December, the National Council for Peace and Order (NCPO) issued a nationwide suspension of gold mining, resulting in the closure of Akara’s Chatree mine in Phichit. The mine had been subject to claims of pollution resulting in environmental damage and ill health among local people.

 

Akara’s parent company in Australia, Kingsgate Consolidated, sent a petition to the government on April 3 calling for negotiations. Akara said the issue could be brought to a tribunal for arbitration since it believed the order was a violation of the TAFTA.

 

Cherdsak Utha-aroon, Akara Resources head of corporate affairs, said the company’s stance in the negotiations was to have the government confirm that the gold mine could reopen. It was also seeking an assurance that the company could operate the mine until its concession expires, and that there would be consultations about mitigating economic losses from the suspension of gold mining.

 

“After our gold mine was closed, we submitted a letter to the government on April 3 in order to start the process of negotiations within a three-month timeframe,” Cherdsak said.

 

“After a meeting in late June, we have seen good signs that the government wants to resolve the conflict, so we have decided to continue the negotiations.

 

“We have a right to ask for compensation for the unjust closure order, and the government understands this. However, we have not spoken about financial compensation yet.”

 

Cherdsak said the company had not calculated the exact economic damage it had suffered from the suspension. But he noted that the gold mine has already been closed for eight months, that the average profit from the Chatree mine was around Bt6 billion a year, and that the company’s concession on the mine would not expire until 2029.

 

 

Industry Ministry permanent secretary Somchai Harnhirun confirmed that the government had been negotiating with the gold mining company and that it had set up a special committee, headed by him, to resolve the conflict. He said there had already been two meetings between the committee and the company.

 

“Although there is still no conclusion from the negotiations yet, we have made progress and assured that there are mutual good intentions between the disputants. They have already understood that the reason for the gold mine closure was to investigate complaints from the local people, and this is not a business seizure,” Somchai said.

 

Any decision to reopen the gold mine would have to wait for a decision from the mineral management policy committee, he said. According to a new Minerals Act, gold mines would be allowed to operate in the future, but they would have to be strictly managed and regulated to prevent negative impacts on people’s health and the environment.

 

He said the government negotiations would be based on the benefit to the country, the effects on the environment and people, and the country’s international obligations.

 

Maha Sarakham University lecturer Chainarong Sretthachau, however, warned that if the gold mine is reopened as a result of negotiations between the gold mine company and the government, the conflict and impact on people would continue and the government would inevitably face resentment for its decision.

 

“The impacts from the gold mine are real. Many people are already dead from the gold mine’s pollution and many people have engaged in lawsuits against the mine,” Chainarong said.

 

“I think the gold mine should be closed by other legal processes rather than using the NCPO’s special powers – for instance, through a corruption investigation by the National Anti-Corruption Commission Office.”

 

Source: http://www.nationmultimedia.com/detail/national/30325658

 

-- © Copyright The Nation 2017-09-04

[wakeupplease]

Maybe the thought of 30 billion B and more is making some think twice. The company has success in other quarters so why would they change a success story, may be others want the rewards. If they have any sense they should go with the cash settlement as other company's will see business here is a non starter due the every changing rules that benefit the few and farangs never.

[ezzra]

Glad to see that someone in the government has come to their senses

and can see the light, mining, if done right and with care, can bring

good revenues and employments to many people in the area and i believe

that the Akara people know what they are doing for it to be indeed

a win-win situation...

[greenchair]

Wise backpeddle.

 

[fxe1200]

4 hours ago, ezzra said:

Glad to see that someone in the government has come to their senses

and can see the light, mining, if done right and with care, can bring

good revenues and employments to many people in the area and i believe

that the Akara people know what they are doing for it to be indeed

a win-win situation...

 

A win-win situation could only be achieved, when the environmental issues are solved, meaning a mayor cleanup and a further prevention pollution, as lives and the health of the people living in the neighborhood of the mine, as well as the water quality, are more important than huge profits and employments.

[AGareth2]

money talks

[edwinchester]

So the heavy metal pollution and permanent health damage to people living in the surrounding area of the mine has nothing to do with mining activities then.

[4MyEgo]

No doubt Yingluck's seized assets and the 30 million baht bail money will go towards compensation.

 

Should we put a spare couple of grand on Kinsgate shares, hmmmm, not while in Thailand, could be shut down again tomorrow under some other lame excuse, never put your $'s in Thailand is my motto. 

[JAG]

It doesn't matter what they do - the damage is done.

[leeneeds]

14 minutes ago, 4MyEgo said:

never put your $'s in Thailand is my motto. 

One, eyed,  tar with the same brush quote, your motto sucks !

 

For my self I have put my money into Thailand and I am still happy I have done so,

for all its faults , some frustrating for sure, I looked long and hard and read so much information from expats who have made the same move and are here for the long haul, plus the ones who never stuck around for their lack of planning or money, or found their requirements  in another country or went back from whence they came.

 

 

[4MyEgo]

37 minutes ago, leeneeds said:

One, eyed,  tar with the same brush quote, your motto sucks !

 

For my self I have put my money into Thailand and I am still happy I have done so,

for all its faults , some frustrating for sure, I looked long and hard and read so much information from expats who have made the same move and are here for the long haul, plus the ones who never stuck around for their lack of planning or money, or found their requirements  in another country or went back from whence they came.

 

 

Each to their own.

 

I have my money back where I came from, I earned on average 9% per annum tax free over the last last 2 years, and that doesn't include the capital gains side of things, and I can dispose of it with the touch of a button and still pay ZERO tax.

 

Now if you can tell me that you put your money in Thailand, and earned more that that % wise and had good capital gain on your investment, and can dispose of it within a blink of an eye so to speak, then your onto a good thing I suppose.

 

Why anyone would want to put money in a Thai bank for example for starters has got me, as I hear the government won't cover your money in the banks if they go belly up, whereas they do where I came from and interest rates are next to nothing here. On top of this the property market is farked, but I have heard the bar scene is booooooming 5555

 

Oh and for the record, I am here for the long haul, and have only invested about 10% of my worth, roof over head, car, etc etc i.e. only prepared to lose as much as I have invested, plan B has to always be an option, do you have one or are you all in ?

Edited September 4, 2017 by 4MyEgo

[BlackJack]

56 minutes ago, 4MyEgo said:

Each to their own.

 

I have my money back where I came from, I earned on average 9% per annum tax free over the last last 2 years, and that doesn't include the capital gains side of things, and I can dispose of it with the touch of a button and still pay ZERO tax.

 

Now if you can tell me that you put your money in Thailand, and earned more that that % wise and had good capital gain on your investment, and can dispose of it within a blink of an eye so to speak, then your onto a good thing I suppose.

 

Why anyone would want to put money in a Thai bank for example for starters has got me, as I hear the government won't cover your money in the banks if they go belly up, whereas they do where I came from and interest rates are next to nothing here. On top of this the property market is farked, but I have heard the bar scene is booooooming 5555

 

Oh and for the record, I am here for the long haul, and have only invested about 10% of my worth, roof over head, car, etc etc i.e. only prepared to lose as much as I have invested, plan B has to always be an option, do you have one or are you all in ?

Not sure what this has to do with Kingsgate?

[tropo]

9 minutes ago, BlackJack said:

Not sure what this has to do with Kingsgate?

It has everything to do with Kingsgate. They invested their money in Thailand and are probably regretting it. They started out under better circumstances, but currently, with a prime minister wielding absolute power that he's quite happy to use, the motto (don't invest in Thailand) makes a lot of sense.

[kkerry]

2 hours ago, 4MyEgo said:

No doubt Yingluck's seized assets and the 30 million baht bail money will go towards compensation.

 

Should we put a spare couple of grand on Kinsgate shares, hmmmm, not while in Thailand, could be shut down again tomorrow under some other lame excuse, never put your $'s in Thailand is my motto. 

 

Share price up 25% in the last month so worth a punt but hasn't paid a dividend in four years. Still, a better potential upside than many other speculative mining & exploration companies.

 

Market updates from Kingsgate and reports in foreign media give a different view of the environmental side of things.

If I remember correctly, not all of the local people wanted the mine closed.

[chowny77]

Thailand was going to bent over and served a sever butt whooping if this went all the way to court. About time this country understood that if you deal with international companies they will not just give up and handover control of something that they have invested. in. Not like the poor farang who opens a bar and pours his money into it to make it nice just to be booted out by a Thai heavy and his BIB mates.

[4MyEgo]

21 minutes ago, BlackJack said:

Not sure what this has to do with Kingsgate?

Was responding to Leeneeds reply #10, who was responding to my comments #8 above, if you care to read the above, #8 is supposed to be my opinion, until Leeneeds had a go #10, that just about sums it up.

[4MyEgo]

29 minutes ago, kkerry said:

 

Share price up 25% in the last month so worth a punt but hasn't paid a dividend in four years. Still, a better potential upside than many other speculative mining & exploration companies.

 

Market updates from Kingsgate and reports in foreign media give a different view of the environmental side of things.

If I remember correctly, not all of the local people wanted the mine closed.

The upside was due to the announcement that the Thai government is allowing them to reopen, the downside was about the same 25%-35% off the top off my head when they told them they had to close the mine.

 

I also hear there is a lawsuit by the locals which, if true, could see it drop further, better off buying Mayne Pharma MYX as it has dropped a lot but is going to bounce back over the next couple of years, I have 90k in it and bought in when it was 0.70c

 

Good luck

[Cadbury]

5 hours ago, fxe1200 said:

 

A win-win situation could only be achieved, when the environmental issues are solved, meaning a mayor cleanup and a further prevention pollution, as lives and the health of the people living in the neighborhood of the mine, as well as the water quality, are more important than huge profits and employments.

Why do you persist in trotting out this nonsense about pollution when the Thai Minister himself admitted that investigations could not provide proof of evidence of pollution of cyanide or heavy metals from the mine causing people's sickness. If you have evidence of pollution you should hand it over to the Minister. If you have nothing to offer then stop spreading BS stories. 

Thailand's Industry Minister Atchaka Sibunruang acknowledged investigations had been unable to "confirm that the gold mine causes heavy metal and cyanide contamination in the environment and people's sickness".  

[kkerry]

 

45 minutes ago, 4MyEgo said:

I also hear there is a lawsuit by the locals which, if true, could see it drop further, better off buying Mayne Pharma MYX as it has dropped a lot but is going to bounce back over the next couple of years, I have 90k in it and bought in when it was 0.70c

 

Kingsgate and Santos, M&E stocks I usually avoid, have been doing better than my pharma stocks of late. Prices went so low there was always hope for some decent gains and over the past couple of months there has been some light at the end of the tunnel. With Kingsgate I just hope it's not an express train heading towards me, less so with Santos who might finally be getting their house in order.

 

Took some profits on SIG and API pharma earlier this year, a mistake not to have sold the lot. SIG report on Thursday, so we will see, but not feeling optimistic. Not looking to invest further in pharma right now. Chemist Warehouse have the local industry spooked and Amazon in the shadows has everyone running scared apart from my breakout stock this year KGN  

 

Anyway, maintaining an eagle-eye on Kingsgate.

[leeneeds]

14 hours ago, 4MyEgo said:

Now if you can tell me that you put your money in Thailand, and earned more that that % wise and had good capital gain on your investment, and can dispose of it within a blink of an eye so to speak, then your onto a good thing I suppose.

 

My last two investments returned 22% here in Thailand , and very shortly I will have another payday of 20% , the return on investment is relatively short in time, 

Your other question of am I all in , yes , but have other sources if things go pear shaped for what ever reason. Understanding and planning, works just as well here as anywhere else in the world.

[4MyEgo]

2 hours ago, leeneeds said:

My last two investments returned 22% here in Thailand , and very shortly I will have another payday of 20% , the return on investment is relatively short in time, 

Your other question of am I all in , yes , but have other sources if things go pear shaped for what ever reason. Understanding and planning, works just as well here as anywhere else in the world.

Good luck to you, and I am assuming in your understanding and planning, you are aware, the higher the return, the higher the risk, irregardless of the time I hope that's not the case in your situation.  

[BlackJack]

On 9/4/2017 at 2:13 PM, tropo said:

It has everything to do with Kingsgate. They invested their money in Thailand and are probably regretting it. They started out under better circumstances, but currently, with a prime minister wielding absolute power that he's quite happy to use, the motto (don't invest in Thailand) makes a lot of sense.

PLEASE GUYS back on subject -

I think look at the Kingsgate picture in total will give you a better insight into the Company. Also look into the price of gold. The terminally ill CEO making decisions. The coups. The IPO failure. The issue of arsenic and manganese affecting the local environment (not proven). Kingsgate did due diligence before their investment with rights, leases, share holder funding, etc. Even an agreement at government level to make sure that all things were above board and legal. 1000 jobs for locals created. Schools, roads, clinics for the locals. All happy little campers and happy shareholders. The issue will be compensation and if it will be paid and how much? Being closed for that past 9 months things may or may not have been maintained if not then it will take time and money to get into full speed production. Maybe a capital raising that will further dilute the company or they may get bought out by an interested party. Now who might that be?????

[tropo]

46 minutes ago, BlackJack said:

On 9/4/2017 at 2:13 PM, tropo said:

It has everything to do with Kingsgate. They invested their money in Thailand and are probably regretting it. They started out under better circumstances, but currently, with a prime minister wielding absolute power that he's quite happy to use, the motto (don't invest in Thailand) makes a lot of sense.

 

PLEASE GUYS back on subject -

 

No problems, boss. Have at it...  I'll leave you to it...

Edited September 5, 2017 by tropo

[kkerry]

A couple of updates from Kingsgate (KCN) today. After a fairly flat spell the stock has gained 17% for the week, 8% on todays news. 

If you bought in six months ago it's tempting to take a 65% profit as there is still much uncertainty as to what lies ahead.

Meanwhile KGN is up 55% from my September 4th post (+187% over six months). 

 

http://www.kingsgate.com.au/#tab-id-3

https://stockhead.com.au/resources/kingsgate-takes-insurers-court-mine-closure-claim/

[Cadbury]

On ‎4‎/‎09‎/‎2017 at 10:30 AM, edwinchester said:

So the heavy metal pollution and permanent health damage to people living in the surrounding area of the mine has nothing to do with mining activities then.

It was an attempted con job by some of the locals to try to winkle some money out of the company. 

Edited October 13, 2017 by Cadbury

[Cadbury]

30 minutes ago, kkerry said:

A couple of updates from Kingsgate (KCN) today. After a fairly flat spell the stock has gained 17% for the week, 8% on todays news. 

If you bought in six months ago it's tempting to take a 65% profit as there is still much uncertainty as to what lies ahead.

Meanwhile KGN is up 55% from my September 4th post (+187% over six months). 

 

http://www.kingsgate.com.au/#tab-id-3

https://stockhead.com.au/resources/kingsgate-takes-insurers-court-mine-closure-claim/

It has been suggested in outside media that Kingsgate may well get the mine back despite the attempts by the military government to steal it from them. You can bet that if an agreement is reached there will be the obligatory face saving clauses for Prayut and his government. If Kingsgate do get it back it will reflect badly on Prayut who personally had it shut down and Kingsgate booted out. It will go down as one of his greatest stuff-ups and embarrassments.

[BlackJack]

theres a lot of posts here that seem like knee jerk reactions and also some based on a punter putting a few thousand dollars in a fund in Thailand.

 

Kingsgate has a long history and if Gavin the CEO was still alive you could call him and he would tell you the story pre current PM.

 

Some kind of bilateral agreement will be reached, one day.

 

If you have shares then bottom drawer them and wait it out.

 

If you dont have shares then you have not missed the the boat -

[kkerry]

This would explain the most recent share price movement.

 

Metal Tiger PLC investment update

[kkerry]

Kingsgate takes Thailand to court over gold mine closure

 

Kingsgate Consolidated has kicked off legal proceedings against the Thai government to recover “substantial” losses suffered from the premature closure of its Chatree gold mine last year.

 

Kingsgate (ASX:KCN) said it was forced to take legal action since it had been unable to achieve any settlement with the government over Chatree’s closure.

 

 

 

 

[Eric Loh]

That’s what can happen when someone has absolute power and misuse the power of Article 44 to close the mine. The outside world don’t recognize 44 and other internal draconian laws.