Navakun mining wins iron-ore exploration licence

According to Primary Industries and Mines Department directorgeneral Anusorn Nuangpholmak, former industry minister Suwit Khunkitti signed the exploration licence days before he left office following the Cabinet reshuffle. The licence lasts five years.

Anusorn said the company would spend around Bt150 million on its first exploration phase.

Navakun submitted the application to explore 26 fields covering 200,000 rai in the East. The operation is the biggest ever, given that most explorers are dealing with areas of between 100 and 200 rai.

Navakun Mining is a subsidiary of Oxiana, which is Australia's third largest diversified mining company. Oxiana has expanded its mining business in several countries in Southeast Asia including Laos.

Peter Albert, executive general manager for Asia of Oxiana, said that if the exploration was successful, the company would start production and supply to upstream steel smelters in the country. The firm also plans to export iron ore to China, which is one of the world's largest markets.

Meanwhile, the Primary Industries and Mines Department will develop a standard to control the quality of scrap in local steel blast furnaces.