Uncertainty spurring conflict over gold mines

Cabinet ruled in May that all gold mines in the country must close by the end of the year.

But last week Akara Resources, which says its Phichit gold mine is the largest in the country in terms of ore and gold production, appealed to the Primary Industries and Mines Department to extend the mine’s metallurgy licence for another five years – because it says the Cabinet issued a new decision that cancelled the close-down order.

Maha Sarakham University lecturer Chainarong Sretthachau said the vague mine closure decision had fuelled conflict and the government needed to publicise the details of the new Cabinet decision to make things clear.

“Even the Primary Industries and Mines Department stated that the mine will still be closed, but there is still no clarity on this decision and this opened room for mine supporters to campaign – and has deepened the conflict,” Chainarong said.

“Right now, the government just says that they will close the mine, but at a practical level nothing is moving forward, especially the plan to restore the environment. I suggest that the government should make the order clear, so everyone can go ahead with the operation of finding new jobs for the miners, preparing for mine closure and restoration of the environment.” 

Akara Resources corporate affairs chief Cherdsak Utha-aroon said that it was the company’s right to get a proper metallurgy licence extension as it complied with all the rules and handed in every requested document for the extension, but it had only got an extension till December 31.

“It was unfair to us. The claim that the gold-ore reserves will run out by the end of this year is wrong and the Cabinet decision to close down the mine has already been cancelled, so we should get a proper licence extension of not less than three years,” Cherdsak said.

He said that based on Cabinet’s new decision not specifying mines had to close by the end of the year, the only factor that would force the mine to close was not having a metallurgy licence.

“Without the licence, we will be unable to operate the mine anymore because we cannot process the raw ore and it will result in us closing down the mine eventually. And there will be a loss of job opportunities for local people and it will severely hurt the Phichit economy,” he said. 

However, the company’s claim that the gold mine closure order had been cancelled was rejected by Primary Industries and Mines Department chief Chat Hongthiamchan, who said the decision to close all gold mines was unchanged.

“It was the company’s right to appeal for the metallurgy licence extension, but the decision remains the same – the gold mines have to close down,” Chat said.

Workers at the Phichit mine and locals that support the mine sent a letter to the Public Health Ministry to ensure the ministry that they were healthy and there was no threat of cyanide and heavy metal contamination to their food sources and the environment because of the operation.

There have also been several other campaigns by miners to protest over the closure order, as they say the move will financially hurt their families.

Thanyarat Sinthonthammatat, the leader of a group opposed to the mine, said it was keeping a close eye on the government, as it was unclear if the mine would close.

“It is clear that the gold mine causes toxic contamination of the environment and affects people’s health. If the mine [bosses] still insist it will open, we will have to move again,” he said.