Thailand-Kingsgate Settlement Sparks Debate Over Mine Dispute

Picture courtesy of PBS

Thailand and Australian mining firm Kingsgate Consolidated Ltd have ended an eight-year arbitration dispute under the Thailand–Australia Free Trade Agreement, following a settlement announced on November 25. The Thai government says the agreement avoids compensation payments and restores investor confidence, while critics argue it benefits the company more than the public. The dispute centred on the closure and subsequent reopening of the Chatree gold mine.

The arbitration stemmed from a 2016–2017 order by then-prime minister General Prayut Chan-o-cha, acting as head of the National Council for Peace and Order, to shut the Chatree mine after local complaints of environmental and health impacts. Kingsgate, through its Thai subsidiary Akara Resources, sought 30 billion baht in compensation for losses linked to the closure. The Chatree mine, spanning Phichit, Phetchabun and Phitsanulok provinces, has a maximum production capacity of more than 5 million tonnes of gold ore per year.

Industry Minister Thanakorn Wangboonkongchana said the settlement protected Thailand’s national interest and demonstrated transparency, environmental governance and respect for international standards. He said the resolution would increase investor confidence and prevent an international dispute. Department of Primary Industries and Mines director general Aditad Vasinonta added that confidence in Thailand’s mining industry had grown as a result.

Mining watchdog Lertsak Kumkongsak, chairman of the Network of People Who Own Mineral Resources, rejected that assessment, saying “Kingsgate is the winner and the people of Thailand are the losers”. He argued the settlement effectively absolved Prayut of responsibility for issuing an order that allegedly breached the free trade agreement. Lertsak said environmental damage around the mine remained severe and had forced residents to relocate.

Analysts say the government sought compromise over several years to avoid compensation, including granting exploration permits covering 397,696 rai in 2020 and extending mining licences through to December 29, 2031. Akara resumed operations in March 2023 after meeting environmental standards and produced more than 150,000 ounces of gold and nearly 1.5 million ounces of silver by late November 2025. The company reported paying 1.037 billion baht to the Thai state between March 2023 and January 2025 and contributing a further 207 million baht to local and environmental funds.

PBS reported that Kingsgate executives said on December 3 that the Chatree mine would continue to support jobs, income and local quality of life. Akara reported profits of more than 5 billion baht last year and assets exceeding 11 billion baht. The company plans to seek renewal of exploration permits due to expire at the end of this year.

Key Takeaways

• Thailand and Kingsgate ended an eight-year arbitration dispute on November 25 without compensation being paid.

• The government says the settlement boosts investor confidence, while critics say public health and environmental concerns remain unresolved.

• Akara has resumed mining, generated significant output and plans to seek further permit renewals.

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 Adapted  by  Asean Now from Thaipbs 2025-12-21