Environmental activists and residents have cautiously welcomed the cabinet's decision to stop renewing and issuing licences for gold ore exploration and gold mining, saying they are worried the decision can always be reversed.
Speaking a day after the cabinet decision was announced, Arom Kamjing, head of the Civil Society for Reforms of Natural Resources, said Wednesday all gold mining operations should stop entirely and immediately.
The cabinet, however, has agreed to renew the smelting licence of Akara Resources Plc, a subsidiary of Australia-based Kingsgate, which was due to expire Friday. The licence will be extended until the end of this year to give the company and its workers time to prepare for closure, according to the Industry Ministry. The company operates a gold mine straddling Phichit, Phitsanulok and Phetchabun provinces.
- Wednesday's report: Government cancels gold-mining licences
Ms Arom said residents affected by the industry were uncertain if the cabinet resolution would be reversed, in the event of a change of government.
She added Akara was unlikely to take the cabinet decision lying down. She is concerned heavy lobbying could be at play to have the decision reversed. However, she said at least it shows the prime minister was perceptive to their concerns.
Santhamol Jongfangsanoh, a villager affected by the gold mining operation, thanked the regime, saying locals fought for several years to be heard.
"The impacts are real and we're not making false accusations against the firm. We're so glad and we are grateful to the government," she said.
A panel investigating health and environment impacts of the gold mine operated by Akara Resources Plc will carry on, as locals complain that areas surrounding the mine are contaminated with toxic substances including arsenic.
Thanyarat Sinthornthammathat, leader of an anti-gold mine group, said the cabinet decision offered temporary relief. "The problem doesn't end with closing the mine. There will be a rehabilitation phase but how and for how long will that take?" she said.
Tanyanant Pongsa, leader of another protest group in Phetchabun, said help for affected residents should not be compromised and the civic sector should help monitor the rehabilitation process.
Bamrung Thadaeng, a worker at the Chatree gold mine in Phichit whose job is threatened by the cabinet move, said hundreds of people will be out of work, and many might be forced to look for jobs outside the province.
"I grew up here. If I choose to stay here, I will have to turn to farming," he said. The Department of Labour Protection and Walfare says Akara Resources has 364 permanent staff and 693 outsourced staff.
Cherdsak Utha-aroon, of Akara Resources, said the company might file for an injunction with the Administrative Court to suspend the cabinet decision, which would have implications for the country's gems and jewellery industry.
Mr Cherdsak said the company has been granted permits on 14 plots covering 3,725 rai in the areas bordering Phichit and Phetchabun.
One permit expired in 2012 and its renewal was still pending despite a royalty payment of 19 million baht. Four permits will expire in 2019 and the other nine in 2028.
Industry Ministry Atchaka Sibunruang said the government considered residents' welfare as first priority although she is confident the decision would not deter investors.
The Department of Primary Industries and Mines said the massive quarry caused by the mining operation would be developed into a reservoir for the agriculture sector.