Citing the free-trade agreement between Australia and Thailand, Kingsgate, announced in November 2017 that it had filed a suit against Thailand at an international arbitration tribunal.
The gold mine was closed by the Thai government, but an obscure clause in a “free trade” agreement has allowed the lucrative mine in Central Thailand to reopen.
Environmental defenders in Thailand have slammed a decision by the Thai Government to reinstate formerly revoked mining licenses following a lengthy legal battle in an international arbitration tribunal.
The mine was shut amid accusations of villagers being poisoned by leaking toxic waste. Kingsgate, whose Thai subsidiary Akara Resources had operated the mine since 2001, filed an international arbitration lawsuit.
Australian gold mining firm Kingsgate Consolidated is seeking negotiations with the new Thai government over the case in which it was ordered to cease mining operations in Phichit two years ago.
The Australian mining company Kingsgate Consolidated, armed with a US$55-million insurance payout for the closure of its gold mine in Thailand, says it now has the financial means to pursue its arbitration case against the Thai government.
Kingsgate has been fighting the Thai Government and its insurers over the cancelled Chatree goldmine after it was denied renewal of its metallurgical licence.
The Thai government is about to enter a trade deal that could seriously harm the reform agenda and deprive communities of the ability to make decisions for fear of violating investors’ rights.