Thailand’s Government has lifted the temporary suspension of Kingsgate Consolidated’s Chatree gold mine, allowing it to reapply for a mining license.
The mine, operated by Kingsgate subsidiary Akara Resources, closed last year after the Thai Government ordered the suspension of all gold mines amid health and environmental concerns.
Kingsgate then launched a claim against the Thai Government for violating the Australia-Thailand Free Trade Agreement (TAFTA).
The company planned to meet Thai Government representatives to discuss a possible settlement of the claims, however, prior to the meeting, it was informed the Thai Government had lifted the suspension.
Kingsgate was also informed that Akara’s application to renew its Metallurgical Processing Licence for Chatree, which expired on December 31 2016, could now be processed.
The Thai Government however, does not intend to financially compensate Kingsgate for the closure.
“It subsequently became clear that the Thai Government would not be offering any monetary compensation for the substantial losses that Kingsgate has already suffered as a result of the unlawful closure and expropriation of the Chatree Mine, nor for the substantial expenses that would be incurred in connection with restarting operations at Chatree,” Kingsgate said.
However, the company said the Thai Government “may still be willing to provide other meaning benefits” in light of the Chatree suspension.