Loei goldmine to close 'within 5 years'

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Loei goldmine to close 'within 5 years'
Pongphon Sarnsamak
The Nation

Tungkum plans to leave province, move to Laos even if expansion bid gets nod

BANGKOK: -- GOLD-MINING activity in Loei will stop within five years even if the mining company operating there is granted permission to expand its current operation in the province, an executive of the firm said yesterday.

Tungkum Company Ltd managing director Bundit Sangsaree-thamm revealed yesterday that the company plans to shut down the gold-mining operation in Loei province and move to Laos in the next five years.

This will happen even if the Thai government gives the firm the nod to mine gold on an additional site in Loei covering over 270 rai.

The expansion was proposed to the Primary Industries and Mines Department.

He explained that the company plans to end gold-mining activity in Loei because of strong opposition from local people and that it has to shoulder a heavy financial burden. Besides this, the company says there is no guarantee that the amount of gold remaining in this site would be enough to justify significant further investment.

While the estimates of the amount of gold at the site were as high as 1 million tonnes, Bundit said, adding that this was only ever a potential figure.

The company received a licence in 1991 to search for gold on more than 270,000 rai of land in Loei. The company has engaged in actual gold mining on more than 1,300 rai. It was ordered by the Industry Ministry to suspend its activity as the mine's tailing pond needed maintenance.

Ordered to suspend activities

The Cabinet also ordered the company to suspend its activity and allow agencies to investigate the original source of contamination by hazardous substances such as cyanide, lead and mercury in both the environment and in local villagers' bodies.

Bundit said that if the company wins the concession to mine on the 270 rai it will have enough money to pay wages for 500 employees.

"If we cannot get this concession we will ask again and again until we get approval," he said.

The company will soon move to operate a goldmine in Laos' Xiangkhoang province, as it has won a concession to operate a goldmine there on more than 230,000 rai.

Lerdsak Khamkhongsak, a coordinator of the Cultural Ecology Group, said he and a group of |students who oppose Tungkum Company's mining on the new site in Loei planned to demonstrate |at the Stock Exchange of Thailand.

They want to inform the company's shareholders that the public hearing for the new gold mining site was not as smooth as the |company previously reported to the SET.

Supree Wongdeeprom, chairman of the National Economic and Social Advisory Council's Quality of Life development sub-committee, said his committee would recommend the government designate zoning areas between the gold mining site, head watershed areas and residential areas.

The government should pay also for the company to remove the gold-mining plant from the watershed area and pay affected villagers.

The panel will set up a working group of health experts and academics to conduct fact-finding missions relating to mining-related problems in local areas.


-- The Nation 2013-10-23

[ChrisY1]

These local mining companies are an absolute disgrace and embarrasment to the industry, with total disregard to modern day mining technology.

The leaking, leaching or deliberate discharge of contaminants, from these mines into the environment, should force their closure.....!

But no doubt money will change hands....influence will prevail....the mines will continue!

[jaltsc]

"...the company says there is no guarantee that the amount of gold remaining in this site would be enough to justify significant further investment."

This is all they needed to say. If there was still enough gold to justify the investment, they would have ignored, or if necessary fought the local people's opposition, no matter how strong it was. It's about the money, and only about the money. This is the universal attribute of greed for the powerful.

[dukechance]

Oh, thank god. They've promised to leave Loei, decimated by containments, only to go to the next pristine environment in Laos and destroy it. <deleted>?

[patongphil]

While the estimates of the amount of gold at the site were as high as 1 million tonnes, Bundit said, adding that this was only ever a potential figure.

Wow that is sure some amount of gold to turn your back on - more gold than has been mined to date in the rest of the world combined !!!

[patongphil]

One million tonnes of gold and they are walking away from it. At current prices of $1350 per ounce this would buy a few bottles of Leo.

[apetley]

While the estimates of the amount of gold at the site were as high as 1 million tonnes, Bundit said, adding that this was only ever a potential figure.

 

Wow that is sure some amount of gold to turn your back on - more gold than has been mined to date in the rest of the world combined !!!

It's BS. Couple that with an ignorant reporter who has no idea what they are writing and you get nonsense like that.

One million tonnes of gold bearing rock/soil with a few grams of gold per tonne.

[keeniau96]

Absolutly no way to have that much gold. One million tons of gold ore, very possible. Need to know the grade and the recovery, probably a few ounces of gold per ton at 50-60% recovery.

[HUAHIN62]

555, 1 million tonnes thats more than the USGS estimate for the world. Must be 1 million baht or ounces.

[johnlandy]

While the estimates of the amount of gold at the site were as high as 1 million tonnes, Bundit said, adding that this was only ever a potential figure.

Wow that is sure some amount of gold to turn your back on - more gold than has been mined to date in the rest of the world combined !!!

Yes and anyone quoting that figure is an idiot who wouldn't know shyt from shinola.

[chainarong]

I really think this crowd of shmucks should take a good look at themselves, being involved with mining for some 45 years , there is an enormous amount of time , money and effort, spent protecting the environment, looking after the workers welfare and ensuring that everyone gets home safe ,OHS, going to Lao might be there undoing, as there are very large mines in Lao, with very strict environmental, safety guide lines set down by the Lao government, the Lao government wont be pushed around like the Thai government, but then again the Thai government bring it all on themselves, with antiquated, out dated mining laws along with corruption.