Opponents of potash mining in Nakhon Ratchasima are demanding good governance from the SET-listed energy group Bangchak Plc, the majority owner of the mining company that holds a concession for the site.
Representatives from the Dan Khun Thot Conservation Group gathered on Tuesday at the Ministry of Industry, calling the Department of Primary Industries and Mines to scrap the licence awarded to Thai Kali Co, as the site is very close to local communities.
Thai Kali holds a 25-year concession to mine an area covering 9,005 rai of land in Dan Khun Thot district of the northeastern province. The department last September granted it a licence to carry out mining at Nong Don Pho, not far from its first site. About 300 households are expected to be affected by the new project.
Potash, a common term used for nutrient forms of the element potassium, is an important nutrient for growing plants. It is a key component of fertilisers.
Thai Kali had suspended operations earlier after strong protests from local communities, but it is preparing to resume operations after Bangchak became its largest shareholder last month.
Bangchak said the investment was part of a business diversification plan focusing on upstream activities. The acquisition of a 65% holding in Thai Kali was made through Bangchak’s wholly owned subsidiary BCV Energy.
The government’s Vayupak Fund 1 is the largest shareholder of Bangchak with 19.84%. The Social Security Office holds 15.78% and the Ministry of Finance 4.76%.
Potash mining by Thai Kali has already had a heavy impact on local people’s livelihoods, as high levels of salt in paddy fields has left them unable to produce rice anymore, said Buaphan Srithong, a spokesperson for the Dan Khun Thot Conservation Group.
Residents are demanding compensation for environmental damages. The Department of Primary Industries and Mines set up a committee to investigate the issue, but there has been no conclusion yet.
Residents fear that a new potash mining site would produce the same damages that other communities have already experienced.
Chutamas Srihatapadungkit, another protester, said she was disappointed with the response from the department so far. She believes that no new mining licences should be issued once the report of the investigative committee is released.
“People have a basic human right to live in a good environment and should be eligible for rehabilitation if that right has been violated,” she said.
“But it seems that the new licence has been awarded without any consideration of our request. In that case, we will keep fighting until our demand is translated into action.”
The group later moved to the Social Security Office headquarters in Nonthaburi province. Demonstrators called on the Office, as a major shareholder in Bangchak, to ensure the company follows the principles of human rights, good governance and sustainability.
Noting that Bangchak frequently boasts about its green credentials, they said the company should withdraw its investment in Thai Kali to avoid negative impact.
On Wednesday, the group plans to gather at Bangchak’s headquarters to protest against its involvement in a non-green business. They will also ask the Stock Exchange of Thailand to investigate the company.