webfact Posted December 10, 2017 Share Posted December 10, 2017 Australia's Kingsgate battles Thai government over gold mine closure Case moves to international arbitration after military junta's decision HIROSHI KOTANI, Nikkei staff writer BANGKOK -- Relations between an Australian mining company and the Thai government are embroiled in a legal battle over the closure of a gold mine in Thailand, a case that foreign companies with investments in the country are watching closely. Kingsgate Consolidated ceased operations on Jan. 1 at the Chatree gold mine in the northern Thai province of Phichit a few weeks after an order to do so by the military government in December last year. But the Sydney-based company said in a statement that it began international arbitration procedures last month to demand compensation, claiming the order was baseless. Full story: https://asia.nikkei.com/Markets/Commodities/Australia-s-Kingsgate-battles-Thai-government-over-gold-mine-closure -- NIKKEI ASIAN REVIEW 2017-12-11 Link to comment Share on other sites More sharing options...
Dave67 Posted December 10, 2017 Share Posted December 10, 2017 Love to be a fly on the wall when Junta logic gets thrown out of court, probably be dressed up as huge win for Thailand Link to comment Share on other sites More sharing options...
Bluespunk Posted December 10, 2017 Share Posted December 10, 2017 “The company had operated the mine since 2001 under Akara Resources, a Thai subsidiary that is wholly owned by Kingsgate. Chatree has been an important source of revenue for Kingsgate, producing some 50,000 ounces, or 1.5 tons, of gold in the last quarter of 2016 before its closure.” Pesky foreigners, how dare they legally own a company here, under a legally binding agreement, and have the audacity to do so efficiently and make a legal profit. Link to comment Share on other sites More sharing options...
ezzra Posted December 10, 2017 Share Posted December 10, 2017 Thai logic dictates that if a company making good money and lots of it and in GOLD, there must be something fishy and not right going on there, and whey should we give our Thai gold to some farangs? we want it ALL for ourselves..... Link to comment Share on other sites More sharing options...
leeneeds Posted December 10, 2017 Share Posted December 10, 2017 No friends where money and gold are concerned, reflection on the outcome for all future and current investors, compensation should be very severe. Link to comment Share on other sites More sharing options...
greenchair Posted December 11, 2017 Share Posted December 11, 2017 The problem is they spent millions to dig deep and finally arrived at the place where large profits were beginning to emerge. Like many 51 percent businesses , it is time to put the muscle and brains out and bring in the gold diggers. Pun ? Link to comment Share on other sites More sharing options...
mikebell Posted December 11, 2017 Share Posted December 11, 2017 I agree with greenchair above; Thailand, a nation of gold-diggers from government officials up to the higher echelons of police and the armed forces. Link to comment Share on other sites More sharing options...
fxe1200 Posted December 11, 2017 Share Posted December 11, 2017 That says it all: " Pasu Loharjun, permanent secretary of Industry, said residents had filed complaints against the gold mining operation for a long time due to its alleged impact on the environment and people’s health. This led the NCPO to issue the order on December 13, 2016 to resolve the conflict by suspending all gold mining operations nationwide so that agencies concerned could tackle the problems and take remedial measures. http://www.nationmultimedia.com/detail/national/30330764 see also: http://www.nationmultimedia.com/national/People-living-near-mines-seek-to-get-blood-tests-30252092.html Link to comment Share on other sites More sharing options...
ratcatcher Posted December 11, 2017 Share Posted December 11, 2017 40 minutes ago, mikebell said: I agree with greenchair above; Thailand, a nation of gold-diggers from government officials up to the higher echelons of police and the armed forces. " Thailand, a nation of gold-diggers from government officials up to the higher echelons of police and the armed forces.'' That's why they want the gold mine, saves them a lot of digging. BTW, some farangs consider Pattaya BGs to be the best gold-diggers Link to comment Share on other sites More sharing options...
Sid Celery Posted December 11, 2017 Share Posted December 11, 2017 I don't know the rationale behind the government forcing the closure, but I'm pretty sure it won't have been protecting the health of the neighbouring Thais. I think it's much more likely that a friend or sponsor of Prayuth was going to get a zero-cost or low-cost mining concession when all the fuss died down (generally only takes a few days in Thailand - Thais have a short little span of attention). Then the stupid farang were unsporting enough to invoke an international trade agreement, with zero chance for the Thai government to wriggle out - or do any more in fact than delay the final outcome in their normally dishonest way. The probability for a Thai PR disaster and face-loss on a par with the famous plane in Germany is quite high I think... Watch what happens to foreign investment if Thailand loses (which seems almost inevitavble if they don't fudge a deal). Oops. Link to comment Share on other sites More sharing options...
Srikcir Posted December 11, 2017 Share Posted December 11, 2017 6 hours ago, Dave67 said: Love to be a fly on the wall when Junta logic gets thrown out of court, probably be dressed up as huge win for Thailand There's no court, only an arbitration tribunal. If Kingsgate is awarded its claimed compensation, there's little with which the junta can do to save face. Link to comment Share on other sites More sharing options...
champers Posted December 11, 2017 Share Posted December 11, 2017 A settlement prior to a tribunal judgement would be my bet. A confidentiality clause will also be paid for by the Thai Government to keep nosey parkers at bay. Link to comment Share on other sites More sharing options...
Srikcir Posted December 11, 2017 Share Posted December 11, 2017 4 minutes ago, champers said: A settlement prior to a tribunal judgement would be my bet. A confidentiality clause will also be paid for by the Thai Government to keep nosey parkers at bay. I believe that any settlement would still have to be approved by the tribunal to assure that it's binding and not contradictory to the general terms and conditions of the free trade agreement made between the Thailand and Australian governments. As such I doubt either the tribunal, Australia nor Kingsgate will accept a confidentiality agreement. Link to comment Share on other sites More sharing options...
greenchair Posted December 11, 2017 Share Posted December 11, 2017 1 hour ago, Sid Celery said: I don't know the rationale behind the government forcing the closure, but I'm pretty sure it won't have been protecting the health of the neighbouring Thais. I think it's much more likely that a friend or sponsor of Prayuth was going to get a zero-cost or low-cost mining concession when all the fuss died down (generally only takes a few days in Thailand - Thais have a short little span of attention). Then the stupid farang were unsporting enough to invoke an international trade agreement, with zero chance for the Thai government to wriggle out - or do any more in fact than delay the final outcome in their normally dishonest way. The probability for a Thai PR disaster and face-loss on a par with the famous plane in Germany is quite high I think... Watch what happens to foreign investment if Thailand loses (which seems almost inevitavble if they don't fudge a deal). Oops. In another thread it said a high up official made an offer to takeover the mine. Apparently he was turned down and suddenly the villagers were protesting. Link to comment Share on other sites More sharing options...
Briggsy Posted December 11, 2017 Share Posted December 11, 2017 7 minutes ago, champers said: A settlement prior to a tribunal judgement would be my bet. A confidentiality clause will also be paid for by the Thai Government to keep nosey parkers at bay. You might think that (it would be the logical route) but I suspect that the current Thai administration will put their heads in the sand because top decision-makers have seriously screwed up. Who in government is going to tell Prawit or Prayut that you need to settle this for $ AUS 1 billion or whatever? They will then lose the arbitration. I believe they will then ignore the arbitration decision and refuse to pay. I don't know what happens then. Link to comment Share on other sites More sharing options...
Oziex1 Posted December 11, 2017 Share Posted December 11, 2017 1 minute ago, Briggsy said: You might think that (it would be the logical route) but I suspect that the current Thai administration will put their heads in the sand because top decision-makers have seriously screwed up. Who in government is going to tell Prawit or Prayut that you need to settle this for $ AUS 1 billion or whatever? They will then lose the arbitration. I believe they will then ignore the arbitration decision and refuse to pay. I don't know what happens then. "They will then lose the arbitration. I believe they will then ignore the arbitration decision and refuse to pay. I don't know what happens then." They will likely fall foul of the free trade agreement they have with Australia, possibly resulting in difficulties in maintaining the markets in Aus. My opinion. None of this is going to help the country promote itself as a reliable trade partner or a place to invest. Link to comment Share on other sites More sharing options...
Media1 Posted December 11, 2017 Share Posted December 11, 2017 Lol the regime made s statement that they were cooperating. Yeah sure haha.. More fake lies to bolster your already shocking reputation. What a farce you turned out to be on all areas. Even table manners atbtge buffet. Link to comment Share on other sites More sharing options...
Media1 Posted December 11, 2017 Share Posted December 11, 2017 Invest in Thailand hmm let think. Yes ok NO Link to comment Share on other sites More sharing options...
ThaiFelix Posted December 11, 2017 Share Posted December 11, 2017 1 hour ago, greenchair said: In another thread it said a high up official made an offer to takeover the mine. Apparently he was turned down and suddenly the villagers were protesting. Not sure if the same person but a Mr Chatchai Yenbamroong made a share offer, extremely low valued. He's a millionaire involved in oil. A Google search reveals some very interesting reading indeed.....it all smells a bit fishy but maybe its just me?? Link to comment Share on other sites More sharing options...
champers Posted December 11, 2017 Share Posted December 11, 2017 4 minutes ago, ThaiFelix said: Not sure if the same person but a Mr Chatchai Yenbamroong made a share offer, extremely low valued. He's a millionaire involved in oil. A Google search reveals some very interesting reading indeed.....it all smells a bit fishy but maybe its just me?? No, me too and plenty of others. Reminds me of the sort of missappropriation (theft) of foreign businesses in African banana republics; Zimbabwe for example. Link to comment Share on other sites More sharing options...
Srikcir Posted December 11, 2017 Share Posted December 11, 2017 11 minutes ago, ThaiFelix said: it all smells a bit fishy but maybe its just me?? Kingsgate thought the same. http://www.miningweekly.com/article/kingsgate-snubs-opportunistic-takeover-2016-10-17 Link to comment Share on other sites More sharing options...
samran Posted December 11, 2017 Share Posted December 11, 2017 There is a couple of over arching themes there: - there have been a few other gold mines, which I won't name, who really gave gold mining in Thailand a bad name. KCN got tarred by this same brush but did very little to separate themselves out from this - activists (some say disgruntled land holders who wanted KCN to buy them out) used this as leverage to drum up support. - the junta, as a rule, is scared of any dissent. Better to close down a mine than deal with a bunch of rowdy protesters who may/may not have a case. Separately, - there has always been a feeling within the Thai government that they would have liked KCN to pay more in royalties, which they believe were too low. - KCN were never that great in engaging with the Thai business community. They were always a lucky outlier who had struck it rich in Thailand. So when things went pear shaped, they didn't find too many friends riding to their aid. This has been probably their biggest mistake. - their country manager has recently been deported to face securities charges in Australia - also not a good look for the firm. To my mind KCN have made a mistake in going the arbitration route. This suits the Thai government perfectly. The arbitration will take years. So will the appeals. Lets at least 5 or 6 governments wash their hands of the issue and kick the can down the road while the issue is settled in an agreed court. Settlement won't be possible in the meantime. Link to comment Share on other sites More sharing options...
SOUTHERNSTAR Posted December 11, 2017 Share Posted December 11, 2017 6 hours ago, Srikcir said: There's no court, only an arbitration tribunal. If Kingsgate is awarded its claimed compensation, there's little with which the junta can do to save face. They might win in court but I doubt it if they will get any money out of the junta. Link to comment Share on other sites More sharing options...
PETERTHEEATER Posted December 11, 2017 Share Posted December 11, 2017 I find it difficult to believe that 1.5 tons of gold was extracted in the last quarter of operation. Is that realistic? If so, it's not surprising that someone else has a desire to take over! Link to comment Share on other sites More sharing options...
metisdead Posted December 11, 2017 Share Posted December 11, 2017 Posts in violation of fair use policy have been removed. A post containing an aberrant misspelling of a person's name has been removed. Link to comment Share on other sites More sharing options...
Srikcir Posted December 11, 2017 Share Posted December 11, 2017 10 minutes ago, SOUTHERNSTAR said: They might win in court but I doubt it if they will get any money out of the junta. Again, there's no court - only the three-member arbitration tribunal. One chosen by each country and the third chosen by the other two. The only appeal to a tribunal decision is to the tribunal. This is the nature of a free trade agreement between countries. Yes, the junta can decide not to pay compensation to Kingsgate as determined by the tribunal. But then under the free trade agreement Australia has the right to seek recovery of Kingsgate's lost benefits. Such breach of a free trade agreement will also breach the World Trade Organization agreements - but that's a whole other discussion. Remember that the Thailand-Australia Free Trade Agreement (January 1, 2005) covers an umbrella of trade between the two nations. It's doesn't just cover the Kingsgate mine. Thailand's refusal to pay compensation awarded to Kingsgate by the tribunal allows Australian government (not just the company) to "suspend the application of benefits of equivalent effect to the non-conformity found by the tribunal." (TAFTA, Article 1811(1), "Compensation and Suspension of Benefits") : suspend the application of benefits in the same sector or sectors as affected by the matter that the tribunal has found to be inconsistent with this Agreement; suspend the application of benefits in other sectors if it considers that it is not practicable or effective to suspend the application of benefits in the same sector I'm not sure what all the above means but my guess is that it wouldn't bode well for Thai exports to Australia if Thailand breaches the Agreement by refusing to pay compensation awarded by the tribunal. Under the TAFTA Australia initially eliminated tariffs on more than 83% of all goods imported from Thailand with tariffs the remainder 17% of all goods eliminated between 2010 and 2015. http://www.thaifta.com/english/eng_au.html Maybe Australia can impose a temporary tariff on selected imported goods from Thailand until the Thai government's obligation is met? Link to comment Share on other sites More sharing options...
coulson Posted December 11, 2017 Share Posted December 11, 2017 14 hours ago, webfact said: a case that foreign companies with investments in the country are watching closely Tick tock....better elect a new government to deal with this one. Link to comment Share on other sites More sharing options...
coulson Posted December 11, 2017 Share Posted December 11, 2017 11 minutes ago, Father Fintan Stack said: I give him six months before he twigs he's been diddled Sounds like a right twig diddler, 3 months more like it.. Link to comment Share on other sites More sharing options...
champers Posted December 11, 2017 Share Posted December 11, 2017 1 hour ago, Srikcir said: Again, there's no court - only the three-member arbitration tribunal. One chosen by each country and the third chosen by the other two. The only appeal to a tribunal decision is to the tribunal. This is the nature of a free trade agreement between countries. Yes, the junta can decide not to pay compensation to Kingsgate as determined by the tribunal. But then under the free trade agreement Australia has the right to seek recovery of Kingsgate's lost benefits. Such breach of a free trade agreement will also breach the World Trade Organization agreements - but that's a whole other discussion. Remember that the Thailand-Australia Free Trade Agreement (January 1, 2005) covers an umbrella of trade between the two nations. It's doesn't just cover the Kingsgate mine. Thailand's refusal to pay compensation awarded to Kingsgate by the tribunal allows Australian government (not just the company) to "suspend the application of benefits of equivalent effect to the non-conformity found by the tribunal." (TAFTA, Article 1811(1), "Compensation and Suspension of Benefits") : suspend the application of benefits in the same sector or sectors as affected by the matter that the tribunal has found to be inconsistent with this Agreement; suspend the application of benefits in other sectors if it considers that it is not practicable or effective to suspend the application of benefits in the same sector I'm not sure what all the above means but my guess is that it wouldn't bode well for Thai exports to Australia if Thailand breaches the Agreement by refusing to pay compensation awarded by the tribunal. Under the TAFTA Australia initially eliminated tariffs on more than 83% of all goods imported from Thailand with tariffs the remainder 17% of all goods eliminated between 2010 and 2015. http://www.thaifta.com/english/eng_au.html Maybe Australia can impose a temporary tariff on selected imported goods from Thailand until the Thai government's obligation is met? I think I have read on another thread that siezure of Thai assets in Australia, to the value of monies due, is allowed. A similar event occurred in Germany a few years ago, I believe. Link to comment Share on other sites More sharing options...
wakeupplease Posted December 11, 2017 Share Posted December 11, 2017 2 hours ago, champers said: I think I have read on another thread that siezure of Thai assets in Australia, to the value of monies due, is allowed. A similar event occurred in Germany a few years ago, I believe. Lets hope so, its time the world woke up to the scams here, I just wish they would try in on Honda and the other big companies who invest and do so much for the country, but gold yes easy to snatch on dubious grounds which they did. Once a villain always a lying villain, we see it every day. Link to comment Share on other sites More sharing options...
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