Kingsgate vows long-term role in Thailand

"We have a long association and believe in Thailand," chairman Ross Smyth-Kirk said yesterday. "We have transferred our world-class practices, especially safety measures and technologies, to Thailand in dealing with local people. We have made a strong effort from Day 1."

Kingsgate owns 48 per cent of its local joint venture Akara Resources, which operates the Chatree Mining Complex, straddling Phichit, Phetchabun and Phitsanulok provinces in the Central region.

Akara Resources’ vision is to maintain its position as Thailand’s leading gold producer and to continue growing its gold reserves, resource base and production in Thailand, Smyth-Kirk said.

Between its commissioning in November 2001 and June 30, 2013, the mine has produced more than 1.3 million ounces of gold and more than 5.8 million ounces of silver.

Kingsgate has allocated a capital-expenditure budget of more than Bt60 billion to Akara Resources over the past 14 years.

The mine employs about 1,000 operations staff, including subcontractors, with more than Bt2 billion in employment costs over the past 14 years. There are only a few foreign geologists at Chatree’s mining operation.

"We see some potential opportunities to invest in Thailand, given that it is located on a well-defined gold belt [and] has a dynamic and skilled mobile labour force, and we see it as the real key to Asia and a leading Asean country," he said.

"We also plan to list Akara Resources on Thailand’s stock exchange to allow individual and institutional investors to hold stakes in the company.

"The Thai government has been a breath of fresh air. They have been promoting business opportunities and they seem genuinely interested in getting things moving, particularly the new gold policy.

"We are working very closely with the Department of Primary Industries and Mines and we would like them to expedite the new gold policy to assist with our ongoing licensing commitments and promote some investment opportunities in Thailand for the greater resource sector," Smyth-Kirk said.

Kingsgate has two operating gold mines in Thailand and Australia, as well as two advanced development projects in Australia and Chile.

Chatree is one of the most widely tested and safest mines in the world, the company says. It has won many awards for its best-practice operations and is one of the first mines in the world to become a signatory to the international cyanide code. It has also been awarded the SA8000 – the highest accreditation for corporate social responsibility.

"We have always seen ourselves as guests in Thailand and we respect and value working in a good fruitful relationship with the Thai people," Smyth-Kirk said.

"The gold price is a key driver of maximising the returns of such an investment to the Thai people, and the current gold price unfortunately does not lend itself to realising that potential just yet."

The company has no firm time frame for a return on investment in Thailand.

"However, if we can get the necessary permits to explore and further develop the mine, we have at least another 10 to 15 years in Thailand. We are here for the long haul and have been involved in Thailand for around 28 years," he said.