Akara Resources Plc, which operates a gold mine in Phichit province, says it could face cash flow problems affecting the employment of more than 1,000 workers if the government maintains its suspension order, says chief executive Pakorn Sukhum.
The company stopped mining operations on Jan 13 when the Primary Industry and Mines Department issued a 30-day suspension order after blood tests on local residents showed higher-than-normal levels of toxic heavy metals including manganese and arsenic.
The order is due to expire today, when the government will hold a public hearing with villagers, company employees and relevant groups on whether their health has been severely affected by the mining operation.
"After the public hearing, the government will decide whether to allow the company to resume operations," department director-general Surapong Chiangthong said.
Mr Pakorn said the longer the closure, the more severe the impact on company liquidity, which could force lay-offs.
"No matter how long the suspension, it will affect our cash flow for sure, which will affect employment since our revenue already dropped 100% for a month," he said, referring to about 600 million baht a month in revenue.
The company has about 400 employees and more than 600 subcontractors likely to be affected if the government continues the suspension order, Mr Pakorn said.
After the first evaluation of Akara's mining process, the government required the company to do more blood tests on 250 villagers allegedly affected by toxic substances believed to have been used in mining operations.
Mr Pakorn insisted all of the blood tests showed no employees were sick, although the tests did find high levels of toxic heavy metals.
"The level of toxic substances was similar to what you would find in the blood of inhabitants of polluted areas such as Bangkok or other places in the central region. These toxic substances can be found in several areas, not only around mines," he said.
"We dropped our initial plan to sue the government and prove our operations did not harm anyone in order to show our sincerity. However, if the government wants to keep the mine closed even though we've done everything they wanted, we would have to rethink that."