Akara’s gold mine ‘to be shut at end of year’

After a Cabinet meeting yesterday, Industry Minister Atchaka Sibunruang told the media at Government House that her ministry would not issue new gold exploration concessions and Akara’s metallurgy licence would be extended only until the end of the year.

She added that relevant authorities would work to solve related environmental, healthcare and unemployment problems.

The Cabinet decision also closed the door on new gold exploration and the opening of new mines.

Spokespersons for Akara said the company was surprised by the decision and would consult with legal advisers.

“They are still unable to confirm that the gold mine causes heavy-metal and cyanide contamination in the environment and people’s sicknesses, but in the interest of people around the gold mine and resolving the conflict, we made a decision to close the mine by the end of this year,” Atchaka said.

“Four ministries informed the prime minister about the issue on May 4 and have already received approval.” 

Atchaka added that Thung Kum’s gold mine in Loei has to close down as well because its licence had expired and the Royal Forestry Department would not allow the company to use the forest area anymore.

She clarified the reason why the gold mines had to shut down by saying the government had listened to affected people who would not have been so vocal unless they had a genuine problem.

However, to mitigate adverse impacts for Akara and its workers, she said the ministry was allowing the company to operate as usual this year to extract the remaining gold from their concession and find new employment for its labour force.

“The Industry Ministry will coordinate with the Public Health Ministry, Natural Resources and Environment Ministry, Labour Ministry and other related agencies in order to close the mine, restore the environment, take care of people’s health and look after the unemployed mine workers,” Atchaka said.

About 900 mine employees will lose their job by the end of the year, she said, adding that the Industry Ministry will contact Phichit’s provincial governor to tap a local development fund of about Bt45 million to help the employees, who would also be assisted by the Labour Ministry.

She said the investigation of the source of heavy metal contamination would continue as an Industry Ministry committee inspects the first tailing storage facility to determine whether it had leaked.

Akara stated that the company had the permission to operate the Chatree mine until 2028 and had planned to continue operations until then.

“We have not received anything about this in writing. However, when we do get it we will seek legal advice,” the company said in a statement

Prior to the decision to close the mine being publicised, Akara’s corporate affairs chief Cherdsak Utha- aroon said the company might file a lawsuit against the Industry Ministry with the Administrative Court as a last resort if its licence was not extended.

“We don’t want to engage in a lawsuit against the state and we still hope that we can have peaceful talks with the authorities. However, we may have to use legal action against authorities in the worst-case scenario,” Cherdsak said.

He said Akara has fully complied with regulations and tried to meet all requirements set by the state.

Addressing potential legal action by Akara, the industry minister said her agency would defend itself and explain the government’s reasons for closing the mine if the company decides to sue.

“We will tell them [Akara Resources] that it was our right to rule on this decision and we are doing so in the interest of the people,” she said.