The Asean Potash Mining Co (APMC) has selected a Belarusian construction company to build its underground potash mine in Chaiyaphum next year with construction costs of 20 billion baht, says chief executive Samai Leesakul.
He said APMC signed a letter of agreement with JSC Belaruskali, one of the world's largest producers of potash fertilisers, and the company is expected to spend six months designing the mine before starting construction next year.
"APMC picked JSC Belaruskali out of three bidders, including a Chinese company and a German one," he said.
The potash mine is located in Chaiyaphum on a 9,700-rai plot estimated to have up to 430 million tonnes of potash reserves.
The project faced strong opposition from villagers and non-governmental organisations for more than 20 years before receiving a licence to start operating last year.
Mr Samai said APMC expects to spend about a year on construction and start production of potassium fertiliser in 2018, when some 300,000 tonnes of the first lot of fertiliser are due to be produced. Production is expected to rise to 800,000 tonnes in 2019, reaching full capacity of 1.1 million tonnes by 2020.
Lt Gen Mongkol Jivasantikarn, vice-chairman of the company, said APMC is undergoing an environmental impact assessment of the project to build a 50-megawatt coal-fired power plant to supply power for the mine.
The company also plans to construct a mineral separation plant next year and has been negotiating with three local banks for a 45-billion-baht loan for the project. The plant is expected to produce 1.1 million tonnes of fertiliser a year for 25 years.
APMC was established in 1991 with Asean members holding a 29% stake, while Thailand's Finance Ministry holds 20%. The remaining 51% is held by the private sector.
Recently the Industry Ministry granted two concessions for potash miners: one for APMC with investment value of 45 billion baht and another for Thai Kali Co with a 3-billion-baht value.