Some 130 mining licences were granted last year since a new mining law came into effect in 2017. THE NATION (THAILAND)/ANN
Some 130 mining licences were granted in Thailand last year since a new mining law came into effect in 2017.
The mining industry has faced opposition from local people in many areas and some entrepreneurs have been accused of lacking responsibility.
This led the government to pass the Mineral Act 2017 to increase the strictness of mining operations and the sharing of more benefits with the community. Authorities are saying that a lot of companies were seeking mineral mining licences last year.
Department of Primary Industries and Mines (DPIM) director-general Wisanu Tabtieng revealed that after the new mineral law came into effect in 2017, the department had issued 130 licences.
Under the new law, a licence allowed not more than a 48ha plot, with a total mineral value of more than 200 billion baht ($6.6 billion) throughout the 25-year concession period. The most requested mineral sources are stone mines throughout the country, followed by cement and gypsum mines.
As for potash, there is currently one party submitting an application, which is International Petroleum Group in Nakhon Ratchasima for Thai Khali company.
It is expected to have a production capacity of 100,000 tonnes per year. Currently, it is in the process of consulting with the villagers around the mine.
After that, there must be a public hearing around the mine, prepare the Environmental Impact Assessment (EIA) report and bring the EIA result to the mining concession application.
Domestic mineral production each year will be worth around 70 billion baht, with a royalty fee of around four per cent, bringing income to the state of about three billion baht per year.
There are also special benefits that mines have to give to the locals – about two per cent calculated from total mineral value. It will be 50 per cent for the community and another 50 per cent to the local government.
However, Thailand does not produce enough minerals to meet the needs of the country. The domestic production is worth around 70 billion baht and at least 70 billion baht worth needed to be imported per year.
The main imported minerals are coal – more than 20 million tonnes per year – mostly imported from Vietnam and Indonesia followed by gold imported from around the world.
Minerals ministers have discussed trade, investment and cooperation in the mining industry between Asean member countries, allowing the private sector to meet and exchange information and find various proposals for the government to facilitate mining.
Wisanu said: “Large Thai companies such as SCG have invested in limestone mining and founded cement production factories in neighbouring countries.
“As for coal, many Thai companies are investing. However, small and medium-sized mining companies were still not found to be investing because of the laws of neighbouring countries and the relation with the villagers in the area.
“The country that Thailand is most interested in investing is Laos because it has a lot of essential metal ores,” he said.
THE NATION (THAILAND)/ASIA NEWS NETWORK
