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Published on December 4, 2007

Akara Mining operates two gold mines in Phichit and Phetchabun provinces.

Primary Industries and Mines Department director-general Anusorn Nuangpol-mak said Industry Minister Kosit Panpiemras would like the Cabinet's decision before deciding whether the ministry should extend gold exploration and production licences for the group.

Earlier, the National Human Rights Commission urged the ministry to freeze the licences on environmental grounds.

"The Cabinet will discuss the advantages and disadvantages of the policy and benefits and losses to the Kingdom if the company is allowed to continue operating the gold mines," said Anusorn.

"It's standard practice for any operator to prove it can run its business without ruining the environment or annoying local communities before a licence can be approved."

He refused to comment on if the licences could be extended within this government's term.

"We should wait for the Cabinet's announcement be-fore we say anything," he said.

During this period, Akara Mining can continue operations and begin an environmental-impact assessment.

Akara Mining submitted 60 applications for land rights for mining and exploration covering 64,000 hectares of land in the two provinces.

News of the possible suspension saw Kingsgate shares plunge 19 per cent on the Australian Stock Exchange to a near nine-month low before trading was halted yesterday, reported Dow Jones Newswires.

Kingsgate also issued a statement saying it had overwhelming community support and received numerous employee welfare and environmental awards in its six years of operating the Chatree gold mine.

"The company has consistently delivered social and economic benefits for both local communities and the Kingdom of Thailand," said Kingsgate CEO Ross Smyth-Kirk.

Kingsgate owns 48 per cent of Akara Mining and Thai investors the rest.

Akara Mining has been carrying out commercial gold production in Phichit and Phetchabun provinces since 2002 and is seeking more gold reserves to support its production.

Some 44 of the 53 suspended applications from Akara Mining are for gold-exploration licences and nine for gold-production licences, said the Primary Industries and Mines Department website.

Chalida Ekvitthayavechnukul

 The Nation