Prime Minister Prayut Chan-o-cha says he will "take responsibility" for the dispute with an Australian company involving a gold mine he shut down three years ago, but has yet to make the decision.
At the cabinet meeting on Tuesday, Energy Minister Suriya Jungrungreangkit reported the progress of the arbitration between Kingsgate Consolidated and Thailand that began in late 2017.
The Chatree mine in Phichit and Phetchabun provinces, operated by the Kingsgate subsidiary Akara Resources Plc, was ordered to suspend production in late 2016 on grounds that its activities were harmful to the environment and area residents' health.
The order was made by Gen Prayut under Section 44 of the interim constitution, which grants him unlimited executive powers with impunity after the 2014 military coup.
Kingsgate has consistently disputed the findings of reports that its activities resulted in toxic leaks that affected groundwater and local paddy fields.
Kingsgate has since entered into an arbitration process with Thailand under the Thailand-Australia Free Trade Agreement (Tafta). The company said the government's order was unlawful under the trade pact and caused substantial damages.
On Tuesday, the Energy Ministry proposed four options to the cabinet: (1) paying Akara Resources to shut it down; (2) complying with Akara's demands to avoid paying; (3) waiting for the ruling of the arbitrator and abiding by it; and (4) partially paying the damages and then allowing the mine to reopen.
Some ministers did not agree with the last option, viewing if the government had already shut down the mine, it would be inappropriate to allow it to reopen.
While the meeting was discussing the issue, Gen Prayut said he needed time to think. "I can't decide now but I'll bear all the responsibility," he said.
Interior Minister Anupong Paochinda said Thailand should wait for the ruling while Finance Minister Somkid Jatusripitak made no comments.
Chatree was Thailand's biggest gold mine, employing almost 1,000 workers. The open-cut mine began production in 2001. Its concession was due to run until 2028.
Since Gen Prayut used his special power to shut it down, a question followed who should pay the damages, believed to be 36 billion baht, should the arbitrator decide in Kingsgate's favour.
They link the Chatree case with the status of Gen Prayut as "state official". In their view, if Gen Prayut is a state official, the Thai government must pay the Australian company. But if he is not, Gen Prayut should pay the claims out of his own pocket.
The status of Gen Prayut was questioned before he became the prime minister after the March 24 election. The charter says a prime minister must not be a "state official". Some people believed Gen Prayut was a state official because he received salaries from the state and asked the Constitutional Court to rule.
The court decided Gen Prayut was not a state official. As the holder of the sovereign power at the time, he was not a state official and was qualified to be prime minister.
Cholnan Srikaew, a Pheu Thai MP for Nan province, said in Parliament this month the Opposition would review the 2020 budget bill thoroughly and would not allow the use of the budget to pay the gold mine.