Kingsgate Extends Talks with Thailand as Akara Gold Mine Dispute Drags On
International arbitration decision postponed for the second time; Australia-based miner seeks clarity on the repeal of controversial Section 44 decree
- The final ruling in the international arbitration between Australia's Kingsgate and the Thai government over the Akara Gold Mine has been postponed for a second time to allow for continued negotiations.
- The dispute stems from Thailand's 2017 forced closure of the mine using a special decree (Section 44), which Kingsgate claims was a breach of the Thailand-Australia Free Trade Agreement.
- A resolution is stalled by two key issues: Kingsgate's concern that the Section 44 decree has not been officially repealed and a pending request to expand the mine's operating area.
International arbitration decision postponed for the second time; Australia-based miner seeks clarity on the repeal of controversial Section 44 decree.
The final ruling in the long-running dispute between Australia's Kingsgate Consolidated Limited and the Thai government has been postponed again.
The continuation of negotiations, confirmed by Kingsgate, follows recent political developments in Thailand, including the appointment of a new Prime Minister.
The conflict centres on the Akara Gold Mine, which the Thai government forcibly shut down in 2017 using the National Council for Peace and Order (NCPO) Head's Order, commonly known as Section 44.
The order cited concerns over cyanide leakage from the mine's tailings storage facility, which allegedly impacted the health and environment of nearby communities.
Kingsgate subsequently initiated international arbitration, claiming the closure constituted a breach of the Thailand-Australia Free Trade Agreement (TAFTA).
The international arbitral tribunal's final award was originally due on 15 November 2025 but has been indefinitely postponed.
Aditad Vasinonta, director-general of the Department of Primary Industries and Mines (DPIM), confirmed that the Thai legal team had informed the tribunal of the government’s position, asserting that all actions were taken in the "best interests of the Kingdom of Thailand."
However, he noted that further details could not be disclosed due to a tribunal order restricting the revelation of information related to the arbitration proceedings.
On 17 November 2025, Kingsgate notified the Australian Securities Exchange (ASX), confirming that the company was "currently engaged in negotiations regarding the resolution of the TAFTA dispute with the Kingdom of Thailand."
This follows a prior announcement on 1 October 2025, confirming the initial six-week extension of the ruling deadline (to 15 November 2025) which was mutually agreed upon with the Thai government.
Signed by Ross Smyth-Kirk, executive chairman of Kingsgate, the previous statement noted that the extension followed "recent political movements in Thailand, including the appointment of a new Prime Minister," adding that Kingsgate "remains constructively engaged with the new Thai government."
Sources within the Ministry of Industry suggest that Kingsgate's reluctance to withdraw its lawsuit against Thailand may stem from lingering uncertainties regarding Thai government regulations, despite the Akara mine having resumed operations over two years ago.
Two critical issues are thought to be preventing a full resolution:
Expansion Request: Kingsgate has an outstanding request for an expansion of the mining area to allow for deeper and wider excavation, which has yet to be fully considered.
Section 44 Repeal: Crucially, the Section 44 decree used to shut down the mine remains officially un-repealed. Sources suggest Kingsgate remains concerned by the persistence of this NCPO-era order, which is reportedly a key factor preventing the company from withdrawing its complaint as desired by the Thai side.
