1,000 jobs face threat at Akara gold mine
published : 10 May 2016 at 08:10
newspaper section: Business
writer: Lamonphet Apisitniran
SET-listed Akara Resources Plc has warned that it will have to lay off 1,000 workers if its mining licences in Phichit are not renewed.
The company, which operates a gold mine in the northern province, is under renewed pressure from licensing problems, according to government and company sources.
Akara ceased gold mining when its licence expired in 2012 but is still producing gold from leftover ore under a smelting licence.
But the smelting licence is due to expire on Friday and the government has given no guidance about whether either licence will be extended.
"We need to look into every detail before making a decision because mining activity will have a wide impact, especially on villagers," said Industry Minister Atchaka Sibunruang.
Agencies such as the Industry, Public Health and Natural Resources and Environment ministries will confer, she said.
"Those ministries need to work together on the details before making the decision on whether to allow Akara to operate the mine," Ms Atchaka said, adding that the government must exercise caution after several conflicts between Akara and protesting villagers.
Chat Hongtiamchant, director-general of the Department of Primary Industries and Mines, said several issues were still under investigation and some would take a long time to conclude.
"More than 200 villagers living near the Akara gold mine have tested positive for harmful substances in their blood," he said. "All are waiting to have another test and the government will use the latest results to consider whether to extend the licence."
Akara has submitted an application for another licence to expand its gold mine coverage by 3,000 rai in Phichit province.
The government has not awarded a gold mining licence to any company for more than eight years.
Sydney-based Kingsgate, the parent company of Akara Resources, has threatened to file a lawsuit at the Administrative Court over what it claims is the government's unfair treatment of the company.
"Nobody has died because of our company since we did not cause any problems to health or the environment. The villagers could be sick because of other factors," said Kingsgate chairman Ross Smyth-Kirk.
"In the worst-case scenario, we will consider all available options including going to the Administrative Court. But we hope that is the last option. We don't want to see thousands of employees and their families lose their income."
Mr Smyth-Kirk said he was confident that the company was running its mining business in line with global standards.
The company hopes the government will understand Akara's situation and allow it to run its business.
Greg Foulis, chief executive of Akara Resources, said Thailand remains the focus of the company as it has been investing in the country for 28 years.
"We focus on what matters most as a responsibility not just for our investors but also for the staff and communities around the mine," he said. "Our gold mine meets international standards since we have our operations in many countries across the world."
Mr Foulis said that if the company does not get a licence expansion, it will have to lay off more than 1,000 workers this year.
In 2015 Akara had revenue of 5.31 billion baht, down from 6.51 billion a year earlier, with a loss of 2.1 billion baht versus a profit of 1.02 billion in 2014.







