Kingsgate announces settlement of dispute with Thai government, ending ‘Akara Gold Mine’ case

Kingsgate Consolidated Ltd. has requested to end its dispute with the Thai government regarding the Akara Gold Mine case, which has been ongoing for more than 8 years. The arbitral tribunal is in the process of issuing an official order to formally end the case.

The decision to end the dispute comes after Kingsgate assessed that it would benefit all parties involved, and it sees a future in doing business in Thailand, especially after the Akara Mine resumed operations in 2023.

The dispute originated from the government’s order in 2016 to temporarily suspend mining activities due to environmental and health concerns, leading to a lawsuit under the Thailand-Australia Free Trade Agreement (TAFTA).

After an 8-year arbitration process in the dispute between the Kingdom of Thailand and Kingsgate Consolidated Limited, as a shareholder of Akara Resources Public Company Limited, the arbitral tribunal acknowledged the request to end the dispute on November 25, 2023. The tribunal is currently in the process of issuing the formal order to conclude the case.

Kingsgate Consolidated Limited, an Australian company and shareholder of Akara Resources Co., Ltd., filed the case through arbitration under the Thailand-Australia Free Trade Agreement (TAFTA) since late 2017. The dispute began in 2014 after complaints from local residents near the gold mining area, citing environmental and health impacts. In 2016, the Thai government issued a temporary suspension of gold mining activities nationwide to prevent anticipated environmental and health issues.

Subsequently, Kingsgate requested negotiations with the Thai government under the mechanisms of TAFTA and entered the arbitration process in late 2017.

During the arbitration process, both parties engaged in discussions to find a mutual understanding for settling the dispute. During this period, Akara resumed its process of obtaining necessary permits under the 2017 Mining Act and the policy framework for managing gold mining resources, allowing it to restart operations in 2023. Currently, Akara is operating the gold mine in the areas bordering Thap Khlo District in Phichit Province and Wang Pong District in Phetchabun Province.

Recently, Kingsgate has expressed its desire to end the dispute after evaluating the future of business operations, its coexistence with Thai communities, and the Thai government’s regulatory processes. Kingsgate believes that ending the dispute will benefit all parties involved, and on November 23, 2023, it formally requested the arbitral tribunal to cease the arbitration process. The tribunal is in the process of issuing the final order to end the case without a ruling.

Aditad Vasinonta, Director General Department of Primary Industries and Mines (DPIM), revealed that the dispute resolution process has been carried out by a team led by the Permanent Secretary of the Ministry of Industry, with relevant agencies fully involved. All actions were undertaken with the national and public interests as the top priority.

The resolution of this dispute will help build investor confidence in Thailand's mining industry for the future. The department affirms that, throughout the process, it has considered the approval and regulation of operations in strict accordance with relevant laws, rules, and regulations, paying close attention to economic, safety, and environmental conditions while adhering to principles of correctness, transparency, and fairness. The department will continue to maintain this approach moving forward.