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Thailand-Kingsgate settlement: The real winners and losers in gold mine dispute

Chatree gold mine dispute ends – but at what cost to Thailand?

While the Thai government insists the resolution of its years-long dispute with Australian mining company Kingsgate Consolidated Ltd is in Thailand’s best interests, a local mining watchdog begs to differ.

“Kingsgate is the winner and the people of Thailand are the losers,” said Lertsak Kumkongsak, chairman of the Network of People Who Own Mineral Resources.

On November 25, Kingsgate – parent company of Thailand-based Akara Resources – announced the end of its arbitration case brought against the Thai government under the Thailand-Australia Free Trade Agreement (TAFTA), stating the two sides had reached an agreement. Akara was seeking 30 billion baht in compensation over the 2017 closure of its Chatree mine, the largest gold mine in Thailand.

The dispute had dragged on for more than eight years after General Prayut Chan-o-cha, exercising his absolute power as chief of the post-coup National Council for Peace and Order (NCPO), ordered the mine closed in 2016 following complaints by locals that mining operations were poisoning their environment.

The Chatree mine – straddling the three provinces of Phichit, Phetchabun and Phitsanulok – has a maximum production capacity of over 5 million tonnes of gold ore per year.

What Thai government says

Industry Minister Thanakorn Wangboonkongchana hailed the dispute’s outcome as a victory for Thailand, stating it had prevented an international row and also highlighted the country’s business transparency and environmental governance strengths.

“It increases international investors’ confidence in Thailand, showing how we respect laws and international standards,” he said of the case resolution.

Aditad Vasinonta, director general of the Department of Primary Industries and Mines, echoed that opinion, insisting that the mutual agreement between the government and Kingsgate was in the best interest of Thailand and its people.

“Confidence in Thailand’s mining industry has grown,” he said.

Thanakorn said Akara Resources had been able to resume mining operations at Chatree in 2023 after meeting environmental standards.

The company has also sought a fresh permit to mine under the new minerals

law, which was passed in 2017.

“We have protected the national interest while creating a reliable and stable investment environment, making Thailand a destination of interest for mining and related activities,” the minister said.

What the mining watchdog says

Lertsak of the Network of People Who Own Mineral Resources disagrees, arguing that the government gained no benefits – aside from avoiding compensation.

The only beneficiary on the Thai side was Prayut, he said. The settlement effectively absolved him of responsibility for issuing an executive order that appeared to breach the free trade agreement with Australia, triggering Kingsgate’s 30-billion-baht compensation claim, Lertsak said.

“The order was not issued under normal laws. I have no doubt the NCPO acted recklessly in issuing it.”

The real losers in the dispute, he added, were Thailand and its people, whose health has been put at risk.

“Gold mining has polluted the environment,” he said, adding that the damage around the Chatree mine is so severe that many residents have moved away.

Government signals compromise

Analysts say the Thai government has apparently tried to compromise and avoid paying compensation for the closure order by offering various compromises to Kingsgate over the past few years.

In 2020, the government granted Akara Resources permits to explore for gold across 397,696 rai (636 square kilometres) of land. A year later, it also extended Akara’s gold-mining licence for Phichit and Phetchabun by five years, to January 2027.

In late 2021, the government agreed to renew Akara’s four mining licenses for another 10 years, from December 30, 2021, to December 29, 2031.

The company was also permitted to process piles of ore it had excavated prior to the closure order. After resuming operations in March 2023, the Chatree mine had produced over 150,000 ounces of gold and nearly 1.5 million ounces of silver by late November 2025.

The Department of Primary Industries and Mines insists that Akara received the various permits and concessions during the dispute solely because it had met requirements under the new mining law.

Lertsak believes other motives were at play.

“I am deeply sceptical because, after suspending the company’s mining operations, the government has now allowed the company to continue mining at a much bigger scale,” he said.

What the company says

In early 2025, Akara Resources announced it had paid over 1 billion baht to the Thai state for concessions, permits and other operational requirements between March 2023 and January 2025 alone.

“Out of the 1.037 billion baht paid, 40% went to the central government, 10% to subdistrict administrative organisations, and 50% to local communities around our mine,” said Cherdsak Utha-aroon, Akara’s General Manager of Sustainability. He added that Akara had also contributed 207 million baht to four funds – local village development, risk management, rehabilitation of mining sites, and local healthcare – with some of the money used to install solar streetlights that had boosted security and convenience for local residents.

Akara said it also provides health check-ups for residents to build confidence that mining activities do not pose health risks to surrounding communities – an assurance it says is supported by the good health of employees who have worked at the mine for 10-20 years.

“About 85% of our employees are residents. If the mine were truly unsafe, no one would risk their own well-being or that of their families for employment here,” he said, adding that the Chatree mine operations prioritised safety, health, and environmental stewardship in line with international standards.

At a December 3 meeting with Natural Resources and Environment Minister and Deputy PM Suchart Chomklin to announce the termination of the arbitration case, Kingsgate executives said the company “remains confident that the Chatree Gold Mine will continue to play a key role in driving Thailand’s economy through job creation, income generation, and improving the quality of life in surrounding communities”.

Last year, Akara Resources reported a profit of more than 5 billion baht and assets of over 11 billion baht.

Cherdsak said Akara had already explored 27 of the 44 blocks it was granted access to under permits, but found no gold ore there. The permits are due to expire at the end of this year, but Akara will seek to renew them for another five years, he said.

By Thai PBS World’s General Desk