The Industry Ministry will soon complete new gold mining policies to pave the way for new licences to be granted for the first time in nine years.
"A public hearing will be held this month and settled by the end of the month. The new policies will be completed in the first half of 2015," said Industry Minister Chakramon Phasukvanich.
A backlog of more than 300 mining plots worth about 10 billion baht has built up.
Public input will be considered before licences are granted to operators.
The ministry will also establish a fund to help manage safety and risks in mining areas.
Operators will be require to set up refining facilities in Thailand. The move will create new investment and jobs in the country. One refining facility costs 100 million baht to build.
Arom Khamchring, coordinator of the Noen Maprang Environmental Group in Phitsanulok province, said the group had yet to see the proposed gold mining policies.
But in principle the group opposes the new policies because the lack of stringent environmental standards remains an issue.
"Right now, environment assessments only happen before a licence is granted with no follow-up. If problems happen, mining operators can choose to continue operations," Ms Arom said.
Until the new regulations have better environmental protection, it will allow gold mining companies to move ahead and open mines that will further deteriorate the environment in the surrounding area, she said.
Paul Robilliard, Australia's ambassador to Thailand, recently had a discussion with Mr Chakramon about mining investment opportunities.
"Thailand is an important economic and investment partner for Australia, so we are looking to improve that relationship," he said.
The ambassador discussed new investment opportunities in the industry and manufacturing sector as well as energy supplies to Thailand.
"There are many Australian companies already in Thailand. But I encourage Australian companies to not just invest in Thailand but to see Thailand as part of the Greater Mekong Subregion (GMS)," said Mr Robilliard.
The ambassador also welcomed the government's move to encourage foreign companies to set up regional headquarters in Thailand as part of its international headquarters (IHQ) scheme.
Mr Robilliard said the terms of investment were a matter for the Thai government but the clarity of policies would be very important.
"Many Australian companies have expressed interested in the IHQ scheme. I also recommend them to explore logistics opportunities in the special economic zones that are at a strategic location for the GMS and Asean Economic Community and still need to be developed," Mr Chakramon said.
He said Thailand had had a free-trade agreement with Australia for almost 10 years. The country has doubled its trade with Australia and benefited from the deal despite initial concerns.
Australia is also the closest source of coal and liquid natural gas to Thailand, which is crucial because Thailand is an energy importer.
"The Australian ambassador has also encouraged the Thai food and service industry, which both are world-renowned, to invest in Australia," said the industry minister.