Court awards compensation to hundreds in landmark gold mine case

A Civil Court has ordered that a gold mining firm compensate nearly 400 affected local residents for health and environmental damage linked to its decade-long operations in Pichit province, awarding up to 200,000 baht per person.

The case stems from long-running complaints against Akara Resources' gold mine, in which residents have alleged contamination of watercourses and adverse health effects.

Owned by Australian gold and silver giant Kingsgate Consolidated and operated by its Thai subsidiary Akara, the Chatree mine began operations in 2001, but faced legal challenges and was closed in 2016, before reopening three years ago.

This aerial photo taken on March 22, 2023 shows the main pit of the Akara Resources’ Chatree gold mine in Thailand's Phichit province.

The court ordered the defendant to pay compensation based on the following criteria:

For individuals found to have heavy metal contamination in their bodies exceeding standard limits:

o Under 15 years old: 200,000 baht per person

o Aged 15 and above: 100,000 baht per person

For individuals with heavy metal levels not exceeding standard limits:

o Under 15 years old: 100,000 baht per person

o Aged 15 and above: 50,000 baht per person

For emotional distress due to fear and anxiety:

o Exceeding standard limits: 20,000 baht per person

o Not exceeding standard limits: 10,000 baht per person

The firm must also cover related expenses, including medical costs, daily living expenses and loss of benefits, from the use of public water sources and traditional livelihoods, at a rate of 5,000 baht per person.

Moreover, it is required to provide ongoing medical care for up to two years from the date of the ruling.

The court said 382 people had undergone health assessments as part of the class-action lawsuit, and ordered Akara to make payments within one month or face asset seizures.

Concerning environmental restoration, the court ordered the company to rehabilitate areas surrounding the mine, including public water sources, reservoirs and related sites, ensuring that they are free from contamination caused by mining activities.

The Court also ordered the company to stop using one of its mining tailings ponds, due to risks posed to the local community.

The company must also manage and dispose of mining waste properly and close tailings ponds safely and in accordance with academic and technical standards, under the supervision of relevant authorities, with priority given to public and environmental safety.

Around 40 villagers attended the reading of the verdict, wearing T-shirts emblazoned with the message: "The gold around your neck is made of our tears."

A representative of the affected residents said after the ruling that they were pleased that the court prioritised the hardships of the people, rather than favouring corporate interests, adding that, although the compensation may not fully reflect the damages suffered over more than a decade, it marks an important starting point for justice.

They also said that residents will monitor the company’s compliance closely and expect concrete rehabilitation efforts to improve the local quality of life.

Somchai Amin, the plaintiffs’ lawyer, said the case was filed as a class action with 382 members.

The ruling also allows affected individuals who were not part of the lawsuit to submit claims for compensation by providing evidence, such as medical certificates, to the Legal Execution Department.

Photo by AFP

A screening committee will review applications before determining compensation. The legal team will proceed in accordance with the ruling and the company is expected to consider filing an appeal.

Emilie Pradichit, founder and director of the Manushya Foundation, which advocates for the villagers, described the ruling as a win, saying “We are very happy for the villagers, but the fight is not over. The group will continue pushing for the closure of a second tailings pond.”

Meanwhile a representative from Akara Resources said the company accepts the ruling, but is reviewing its legal options.

"There are some legal complexities and we will consult with our team before taking any further action," Cherdsak Utha-aroon, a company manager, told AFP.