Production of potash set for 2016

Production of potash set for 2016

The Industry Ministry expects three potash mines in the Northeast to be fully operational in 2016 after two of them passed their environmental impact assessment (EIA).

Inspector-general Panithan Jindaphu said the ministry will appoint provincial governors to conduct public hearings for each project, with the participation of stakeholders.

Two of the mines — in Udon Thani owned by Asia-Pacific Potash Corporation (APPC) and in Nakhon Ratchasima owned by Thai Cali Co — have received EIA approval.

Mr Panitan said local residents are capable of selecting EIA specialists from these mine companies, and this will conclude the process within three months.

Once completed, the ministry will give the operator a licence, and the mine will start producing potash in 2016, he said.

In 2012, APPC was criticised by environmental specialists due to perceived inadequacies in its environmental protection plan and had to reconduct the EIA after the first one did not meet requirements under the Minerals Act.

At present, potash mines are planned in three provinces — Udon Thani, Nakhon Ratchasima and Chaiyaphum. Asean Potash Mining Plc's Chaiyaphum project is now conducting its EIA.

With annual capacity of 2 million tonnes, APPC's mine covers 20,000 rai and contains 100 million tonnes of reserves, while Thai Cali will produce 300,000 tonnes a year on 3,000 rai of land.

Located on 9,200 rai of land, Asean Potash Mining Plc has annual capacity of 2 million tonnes with 75 million tonnes of reserves.

At present, potash costs US$350-500 a tonne. Thailand imports 500,000 to 700,000 tonnes of potash each year, most of it used in fertiliser.

Globally, 50 million tonnes of potash is consumed per year, with Asia accounting for 40%.

Meanwhile, the Primary Industries and Mines Department will set up a potash health fund, with the company contributing 50 satang a tonne or at least 200,000 baht a year, and a community development fund in which the company will pay 1.50 baht a tonne for a total of 500,000 baht.

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