Australian gold mining company takes legal action against Thailand

[webfact]

Mining company takes legal action against Thailand

By The Nation

 

 

An Australian gold mining company has launched legal action against the Thai government, claiming it has harmed their business in the country.

Kingsgate Consolidated Limited announced on its website on Thursday that it had failed to settle a dispute with the Thai government over the decision of the National Council for Peace and Order (NCPO) to close their gold mine last December, so it had decided to commence arbitration proceedings against Thailand under the Australia-Thailand Free Trade Agreement.

 

Kingsgate operated the Chatree gold mine in Phichit under the management of its subsidiary Akara Resources. The NCPO’s order meant the mine had been shut since January 1.

 

The company said in a statement that in order to recover the substantial losses it had suffered and continued to suffer, it had appointed leading international law firm Clifford Chance to represent it in arbitration and Dr Andrew Bell would be its lead barrister.

 

The company admitted that the outcome of the arbitration proceedings could not be guaranteed and would take substantial time and money to resolve. However, it stressed that the commencement of arbitration would allow both parties to engage in dialogue to settle the matter on mutually agreeable terms.

 

"The Board of Kingsgate considers that the Company has excellent prospects of successfully recovering very substantial damages against the Kingdom of Thailand, and will vigorously prosecute its claim," the statement said.

 

Source: http://www.nationmultimedia.com/detail/national/30330712

 

-- © Copyright The Nation 2017-11-03

[Eric Loh]

Come on Kingsgate. The mine was closed by Article 44. Surely Article 44 thump those pesky global trade agreement. 

[rkidlad]

Good! Time this government understood that article 44 is only as strong as the people are weak. Can't pull this kinda s**** with foreign entities. They will bite. 

[MadMuhammad]

8 minutes ago, Eric Loh said:

Come on Kingsgate. The mine was closed by Article 44. Surely Article 44 thump those pesky global trade agreement. 

Nicely stated lol

 

http://www.nationmultimedia.com/detail/national/30325447

 

I bought into Kingsgate recently with just this action in mind. The share price had risen 76% shortly after and has now settled at an positive move of 56% and steady now. With a successful mediation this is looking to be a speculative but fruitful investment. 

Edited November 3, 2017 by MadMuhammad

[hangdonger]

They wont get anywhere with this, even if they think the law is on their side

[Cadbury]

 

5 hours ago, Eric Loh said:

Come on Kingsgate. The mine was closed by Article 44. Surely Article 44 thump those pesky global trade agreement. 

Yes indeed. There is likely to be only one witness for the defence of the Kingdom of Thailand and that will be PM Prayut who will enter the witness stand and hold up Article 44 tell Kingsgate and the court to <deleted>.

After that he will lecture them on how easy it is to do business in Thailand and how good their ranking is with the World Bank.

[midas]

Yet another example of Thailand manipulating a commercial situation and totally disregarding previously established legal commitments. It's just a further illustration of why one would have to be crazy to want to do business in this country-particularly under military junta.

[Cadbury]

5 minutes ago, hangdonger said:

They wont get anywhere with this, even if they think the law is on their side

Maybe not but there is sure to be a lot of International adverse publicity which won't help Thailand's foreign investment and trade objectives. Kingsgate will make sure the business world knows what goes on in Thailand under the rule of the military and PM Prayut with his famed Article 44. 

Edited November 3, 2017 by Cadbury

[webfact]

Australian mining firm resorts to arbitration proceedings against Thai government

By Thai PBS

 

 

Kingsgate Consolidated Limited, the major shareholder of Akara Resources Plc, has decided to resort to the arbitration proceedings against the Thai government in order to claim compensation for what it claimed as unlawful expropriation of its gold mine by the government.

 

The company said in its statement to the Australia Securities Exchange on Nov 2 that it had to take this legal approach because it has been unable to achieve any settlement on its claim against the Thai government despite its best efforts to do so.

 

The cabinet resolved on May 10, 2016 to halt gold mining operations nationwide and ordered the closure of Chatree gold mine, operated by Akra Resources Plc, from Jan 1, 2017 onward.

 

Source: http://englishnews.thaipbs.or.th/australian-mining-firm-resorts-arbitration-proceedings-thai-government/

 

-- © Copyright Thai PBS 2017-11-03

[FritsSikkink]

6 minutes ago, midas said:

Yet another example of Thailand manipulating a commercial situation and totally disregarding previously established legal commitments. It's just a further illustration of why one would have to be crazy to want to do business in this country-particularly under military junta.

What about the pollution and the health of the people in the neighborhood?

[emanphoto]

Yes. never mind the health problems of the locals due to mine runoff.  Lets make $.   Profits before people!

 

"The cabinet decided this month to halt all gold mining and exploration nationwide by the end of the year over health concerns.

HEAVY METALS IN THE BLOOD
About 400 residents of both provinces have been found to have unusually high levels of heavy metals in their blood.

Akara Resources and its Australian owner, Kingsgate Consolidated, denied that its 1,200-rai mining operation used toxic substances to extract the gold ore.

TRIP TO BANGKOK COURT TO FILE LAWSUIT

The Lawyers Council of Thailand brought some 30 residents representing the plaintiffs' group to the Civil Court on Ratchadaphisek Road in Bangkok.

The 300 residents were from the tambon of Thai Dong in Phetchabun's Wang Pong district and Khao Jed Luk in Phichit's Thab Khlo district.

The residents demand compensation of 1.58 million baht each and a 50-million-baht contribution by the company to an environmental clean-up fund.

The compensation is for medical treatment, health deterioration, household survival and lost benefits from natural resources.

Attorney Phadungsak Thianphairoj said more villagers are likely to join the class-action lawsuit.

GOLD MINING SPEED-UP BEFORE END-OF-YEAR BAN

The government has ordered Akara to halt gold-mining by the end of the year.

Due to this deadline, there could be more fallout from accelerated operations, lawyer Somchai Ameen said. 

If work is sped up, the plaintiffs would seek a court injunction to prevent such activities."

 

 

[Eric Loh]

39 minutes ago, FritsSikkink said:

What about the pollution and the health of the people in the neighborhood?

I do care about the health of the people but don;t you think the government would have close the mine if sufficient evidence point to that and 44 will not be needed? 

[BuaBS]

Give no more visa's the the mining people and their lawyers. If Thai lawyers >> adjustment camps.

Keep those miners out !

[Dave67]

Since when have Junta cared for the health of the people?

[Dave67]

China in Africa use countries natural resources to guarantee an investment made in Infrastructure, !!!!!!!!!

[Cadbury]

43 minutes ago, FritsSikkink said:

What about the pollution and the health of the people in the neighborhood?

Rubbish! If you had been following the story you would have know that such a claim was investigated by the relevant authority and the minister declared there was no filth or pollution. They got an "all clear" tick of approval. You must be getting mixed up with another mine. You should take the trouble to read this article about the mine and such alleged pollution claims.

http://www.smh.com.au/world/shock-and-confusion-around-closure-of-kingsgateowned-chatree-mine-in-thailand-20161115-gspfto.html

 

[Airbagwill]

a lot of people made a lot of money out of this - I wonder how many were aware of the governments intentions before the announcement?

[Cadbury]

27 minutes ago, emanphoto said:

Yes. never mind the health problems of the locals due to mine runoff.  Lets make $.   Profits before people!

 

"The cabinet decided this month to halt all gold mining and exploration nationwide by the end of the year over health concerns.

HEAVY METALS IN THE BLOOD
About 400 residents of both provinces have been found to have unusually high levels of heavy metals in their blood.

Akara Resources and its Australian owner, Kingsgate Consolidated, denied that its 1,200-rai mining operation used toxic substances to extract the gold ore.

TRIP TO BANGKOK COURT TO FILE LAWSUIT

The Lawyers Council of Thailand brought some 30 residents representing the plaintiffs' group to the Civil Court on Ratchadaphisek Road in Bangkok.

The 300 residents were from the tambon of Thai Dong in Phetchabun's Wang Pong district and Khao Jed Luk in Phichit's Thab Khlo district.

The residents demand compensation of 1.58 million baht each and a 50-million-baht contribution by the company to an environmental clean-up fund.

The compensation is for medical treatment, health deterioration, household survival and lost benefits from natural resources.

Attorney Phadungsak Thianphairoj said more villagers are likely to join the class-action lawsuit.

GOLD MINING SPEED-UP BEFORE END-OF-YEAR BAN

The government has ordered Akara to halt gold-mining by the end of the year.

Due to this deadline, there could be more fallout from accelerated operations, lawyer Somchai Ameen said. 

If work is sped up, the plaintiffs would seek a court injunction to prevent such activities."

 

 

Nonsense! Just 400 locals try to squeeze some money out of the company. Suggest you read the story below instead of a selective historic story about locals holding their hands out for 1.58 million baht compensation.

It was proven there was NO pollution. Have you read anywhere where those scroungers received 1 baht in compensation?

No complaints at that time about the mine from those 1000 plus locals who had good paying jobs. No complaints that is until they got the sack after Prayut shut down what was effectively an unpolluted mine. You can bet there was a few Thai rats with gold teeth lined up behind the PM with their sparkling eyes on the ownership of this clean mine given the gold and silver it was producing. 

 

http://www.smh.com.au/world/shock-and-confusion-around-closure-of-kingsgateowned-chatree-mine-in-thailand-20161115-gspfto.html

[FritsSikkink]

22 minutes ago, Cadbury said:

Rubbish! If you had been following the story you would have know that such a claim was investigated by the relevant authority and the minister declared there was no filth or pollution. They got an "all clear" tick of approval. You must be getting mixed up with another mine. You should take the trouble to read this article about the mine and such alleged pollution claims.

http://www.smh.com.au/world/shock-and-confusion-around-closure-of-kingsgateowned-chatree-mine-in-thailand-20161115-gspfto.html

 

BS all gold mines pollute the water and the environment in general:

 

https://www.bing.com/search?q=gold+mine+pollution&form=EDNTHT&mkt=en-us&httpsmsn=1&refig=dd779d63af3e4ed2c215348f2431b574&sp=-1&ghc=1&pq=gold+mine+pollution&sc=4-19&qs=n&sk=&cvid=dd779d63af3e4ed2c215348f2431b574

[ThaiFelix]

Chatchai Yenbamroong  has made a share offer, extremely low valued.  He's a millionaire involved in oil.  A Google search reveals some very interesting reading indeed.....it all smells a bit fishy but maybe its just me??

[FritsSikkink]

22 minutes ago, Cadbury said:

Nonsense! Just 400 locals try to squeeze some money out of the company. Suggest you read the story below instead of a selective historic story about locals holding their hands out for 1.58 million baht compensation.

It was proven there was NO pollution. Have you read anywhere where those scroungers received 1 baht in compensation?

No complaints at that time about the mine from those 1000 plus locals who had good paying jobs. No complaints that is until they got the sack after Prayut shut down what was effectively an unpolluted mine. You can bet there was a few Thai rats with gold teeth lined up behind the PM with their sparkling eyes on the ownership of this clean mine given the gold and silver it was producing. 

 

http://www.smh.com.au/world/shock-and-confusion-around-closure-of-kingsgateowned-chatree-mine-in-thailand-20161115-gspfto.html

The company uses cyanide.

its usage is banned in a number of countries and territories:

https://en.wikipedia.org/wiki/Gold_cyanidation

Edited November 3, 2017 by FritsSikkink

[Cadbury]

10 minutes ago, ThaiFelix said:

Chatchai Yenbamroong  has made a share offer, extremely low valued.  He's a millionaire involved in oil.  A Google search reveals some very interesting reading indeed.....it all smells a bit fishy but maybe its just me??

Perhaps he was one of those who had been given the tip and was lined up behind the PM waiting for him to pull the pin on the mine with his beloved Article 44. 

[Cadbury]

1 minute ago, FritsSikkink said:

The company uses cyanide.

its usage is banned in a number of countries and territories:

https://en.wikipedia.org/wiki/Gold_cyanidation

All gold miners use cyanide. It's a matter whether it pollutes or not. In this case it was found that it did not pollute any more than was found naturally in the soils around. The Military Director in charge of mining gave it the all clear so far as pollution..

[FritsSikkink]

21 minutes ago, Cadbury said:

All gold miners use cyanide. It's a matter whether it pollutes or not. In this case it was found that it did not pollute any more than was found naturally in the soils around. The Military Director in charge of mining gave it the all clear so far as pollution..

"its usage is banned in a number of countries and territories"

Why would that be?

[Airbagwill]

"It was proven there was NO pollution." - so black is white? Of course there was pollution. y clsoing the mine the govt protcted their intewteredsts and by opening again some people have made fortunes.

however the pollution and questions of the locals still go unanswered.

 

THere were high levels of toxins found in locals blood/urine samples - but in true Thai fashion obfuscation prevails over transparency.

[Cadbury]

17 minutes ago, FritsSikkink said:

BS all gold mines pollute the water and the environment in general:

 

https://www.bing.com/search?q=gold+mine+pollution&form=EDNTHT&mkt=en-us&httpsmsn=1&refig=dd779d63af3e4ed2c215348f2431b574&sp=-1&ghc=1&pq=gold+mine+pollution&sc=4-19&qs=n&sk=&cvid=dd779d63af3e4ed2c215348f2431b574

You speak in generalities and I agree in principle but what we are talking about here is chemical contamination to the limits which the mining laws of the land allow. This mine was tested for those pollution limits set in Thailand and was given the all clear by the military minister responsible for the Department concerned. As someone else pointed out why use Article 44 to shut it down if proven pollution could have done that for them.

Do you think Kingsgate would be stupid enough to take the matter to an International Court and argue their case if they were operating a known and proven polluted mine? 

End of story for the hopeful village litigants who got nothing , end of big fat fee for greedy opportunistic lawyers handling the case and end of story later on for the workers who lost their jobs thanks to Article 44.

 

[champers]

Health issues aside; and I don't know the veracity of any claims or surveys; this does not look good to potential investors. Japanese investors, who were recent guests of the Government, are holding back on investing in the EEC until they have guarantees sufficient to satisfy themselves that those investments won't be subject to any interference from Section 44 or legislation from a military appointed legislative body.

[RichardColeman]

I'm guessing 44 will be used to close this court application !

[Airbagwill]

1 hour ago, champers said:

Health issues aside; and I don't know the veracity of any claims or surveys; this does not look good to potential investors. Japanese investors, who were recent guests of the Government, are holding back on investing in the EEC until they have guarantees sufficient to satisfy themselves that those investments won't be subject to any interference from Section 44 or legislation from a military appointed legislative body.

EEC - is potential minefield.

The Junta is determined to plough through any obstacle to get it going, but more and more envrionmental concerns are getting in their way - and in th same way they are making it more and more difficult to get accurate information.

this month they  ordered the Independent Commission on Environment and Health (ICEH) to be axed. Closing yet another avenue of information.

As this could one day blow up in their face, there is no surprise to see other countries getting a bit cautious - thet've had problems before - like th closure of 60 odd companies - many multinational at Map ta Phut.

[midas]

2 hours ago, Dave67 said:

Since when have Junta cared for the health of the people?

Exactly I mean they show such concern for the daily carnage on the roads don't they ?