APMC gets potash concession

APMC gets potash concession

The government has granted a concession to Asean Potash Mining Co (APMC) to start operation of a potash mine in Chaiyaphum, a project that has faced strong opposition from villagers and non-governmental organisations for more than 20 years.

Industry Minister Chakramon Phasukvanich said it was a historic concession being granted to a "human-friendly mining project", which aimed at producing substantial potash ore for the fertiliser industry to meet rising demand from the country's agriculture sector as well as help reduce imports of potash.

Chakramon: Mining concession historic

"The mine will also help to create jobs, which will in turn stimulate the economy in the region indirectly. At the same time, the country's huge potash imports will be cut," Mr Chakramon said, referring to imports of more than 700,000 tonnes a year worth 10 billion baht.

Mr Chakramon said the 40-billion-baht mining project was expected to produce 1.1 million tonnes of fertiliser a year for 25 years.

"We'ill have an ample supply of fertiliser for millions of farmers, while at the same time the concession will generate revenue for the state," he said.

APMC was established in 1991 with Asean members holding 29% of the total value, while Thailand's Finance Ministry holds 20% of the total value.

The remaining 51% is held by the private sector.

The company started developing the project by carrying out investigative drilling, channel excavation, trial mining and technical and environmental studies.

However, the project has been delayed for some time due to the economic slowdown as well as strong opposition from villagers, who are concerned the mine could adversely affect the environment and their health.

Surapong Chiangthong, director-general of the Primary Industry and Mines Department, said he did not expect the mining project to be opposed by villagers any further since it had passed its environmental health impact assessment and the public hearing process.

"We've been talking to the villagers all the time, and they understand the project quite well and finally gave the nod of approval during the public hearing," he said.

"So we don't expect to see any more opposition from them."

Gen Bunchon Chawansin, an adviser to APMC, said the company expected to start building mining facilities this year and would start producing fertiliser by 2018.

Lertsak Kumkongsak, a coordinator of the Ecological Culture Study Group, said he would work closely with villagers to see who opposes the concession granted to the company.

He said 1,500 to 2,000 families in Chaiyaphum province were likely to be affected by the potash mine, which is expected to use vast amounts of natural water resources.

"We'll use all means to stop the mine," Mr Lertsak said.

"We'll take a few days to plan what to do next to halt it."

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