Australian mining uses the arbitration process against Thai
Australian mining uses the arbitration process with Thai government. Kingsgate Consolidated Limited, the major shareholder of Akara Resources Plc, has decided to resort to the arbitration proceedings against the Thai government in order to claim compensation for what it claimed as unlawful expropriation of its gold mine by the government.
The company said in its statement to the Australia Securities Exchange on Nov 2 that it had to take this legal approach because it has been unable to achieve any settlement on its claim against the Thai government despite its best efforts to do so. The cabinet resolved on May 10, 2016, to halt gold mining operations nationwide and ordered the closure of Chatree gold mine, operated by Akra Resources Plc, from Jan 1, 2017, onward. Chatree gold mine covers 3,000 rai of land in Phichit, Phetchabun and Phitsanulok province. On Dec 13, 2016, Prime Minister Prayut Chan-o-cha invoked Section 44 of the interim Constitution to close down Akara Resources’s mining operations from Jan 1, 2017, and ordered the mining operator to conduct environmental rehabilitation in the areas affected by its operation. The company was also ordered to suspend its metallurgical proceedings to resolve the conflict between the company and people living around the gold mine. The May 10 cabinet resolution and the invocation of Section 44 to close down the gold mine prompted Kingsgate to demanded US$750 million, or about 30 billion baht, in compensation from the Thai government. Source: Thai PBS