Akara’s gold-mining operations back in full swing under new 10-year concession

The mine was shut down in January 2017 by Prime Minister Prayut Chan-o-cha, then head of the ruling National Council for Peace and Order (NCPO).

Prayut invoked his absolute powers under Section 44 of the Constitution to halt operations, citing pollution and environmental damage caused by the mine.

This triggered an international arbitration lawsuit between Kingsgate Consolidated and the Thai government. Thailand stands to pay over 25 billion baht in compensation if it loses the case.

So, to mitigate losses, the government recently agreed to let Akara Resources, previously Akara Mining, resume operations.

Kingsgate, meanwhile, reported to the Australian Securities Exchange that it has received four mining leases from the Thai government to resume operations at the mine.

Cherdsak Utha-aroon, Akara general manager, said the company has started work at its second processing plant and will soon start operating its main plant.

“Once refurbishment in the first plant is completed, Akara will be able to mine 5.5 million tonnes of gold per year,” he said.

He said the company has hired some 260 people and wage payments come up to about 12 million baht per month.

“This will boost purchasing power and stimulate the economy in communities around the mine,” he said.

The Chatree gold mine straddles the border between Phetchabun and Phichit provinces, some 350 kilometres north of Bangkok.

Cherdsak said the company is also preparing documents to clarify supposed irregularities in issuing land-rights documents to the National Anti-Corruption Commission.

Meanwhile, locals working and living around the mining complex said they were glad that work has restarted. They said the mine’s closure and the Covid-19 crisis had affected them badly, with many having to move elsewhere to find work.

The locals hope the mining operations will go smoothly and their income is not disrupted.