Assessment of Gold Mining in Thailand

THE CHALLENGES OF ENVIRONMENTAL, SOCIAL AND HUMAN RIGHTS
IMPACTS ON GOLD MINING IN THAILAND
Name
Date
Institution
TABLE OF CONTENTS
CHAPTER ONE..............................................................................................................................2
INTRODUCTION...........................................................................................................................2
CHAPTER TWO.............................................................................................................................7
GOLD AS A MINERAL RESOURCE...........................................................................................7
2.1 Characteristics of Gold...........................................................................................................7
2.2 Gold Extraction Process.......................................................................................................11
CHAPTER THREE.......................................................................................................................16
LEGAL REGIME..........................................................................................................................16
CHAPTER FOUR.........................................................................................................................21
GOLD MINING IN THAILAND.................................................................................................21
4.1 Geological Impact................................................................................................................21
4.2 Mining Management............................................................................................................25
4.3 Environmental Impact..........................................................................................................28
4.4 Social Impact/Health Impact/Human Rights/Child Rights..................................................32
4.5 Economic.............................................................................................................................35
4.6 Ongoing Case Between Australia and Thailand (Kingsgate Versus Thailand)...................39
CHAPTER FIVE...........................................................................................................................43
CASE COMPARING OF GOLD MINING IN CHINA...............................................................43
CHAPTER SIX..............................................................................................................................47
CONCLUSION AND RECOMMENDATIONS..........................................................................47
6.1 Conclusion...........................................................................................................................47
6.2 Recommendations................................................................................................................50
Bibliography..................................................................................................................................53
CHAPTER ONE
INTRODUCTION
Gold is one of the best known precious and expensive mineral resources in the world. In
Thailand, it has been used as a store of value and held in high esteem. People in Thailand use
gold as financial security. In their cultures, gold is gifted during important occasions such as
wedding and is usually central to their religion. Gold possesses good characteristics that make it
attractive. The over thirty colors of gold make it look attractive, which is commonly referred to
as the color palette. Although gold possesses many advantages and is a source of income, gold
mining is faced with a lot of challenges that make the process complicated and sometimes the
challenges can make a company to halt the mining business. This thesis will focus on the
challenges of environmental, social, and human rights impacts on gold mining in Thailand.
Gold in Thailand is often bought in the form of jewelry and other forms such as the coins
and bars. Gold demand is usually very high in Thailand, thus making many local to involve
themselves in the gold mining activities. In terms of the market, there exist a huge market in
Thailand and also internationally 1. There are many companies in the Thailand gold sector, which
include Yoo Lim Gold (TLG) Bullion, which exports gold even in the international market, MTS
Gold, which is known as the Mae Thong Suk. This company make a lot of profits as they serve
even the international market with these precious metals. Other than the profits they heavily
affected by environmental challenges, social and human right challenges that negatively affect
their business.
1
“Cyanide Hazards to Plants and Animals from Gold Mining and Related Water Issues” [2018]
Biogeochemical, Health, and Eco toxicological Perspectives on Gold and Gold Mining 189
After the gold has been mined, it is taken to a company to refined where chemicals such
as the cyanide are used. The sodium cyanide used in the gold extraction process is highly toxic
and thus causes a great impact on the health of people who are involved in the process. When
this 2chemical is being transported, and there exists an accident, it can even result in the death of
the people who will come into contact with it. Due to this highly poisonous sodium cyanide,
many governments have banned the use of this chemical as a way of protecting the health of
their citizens. Gold mining activity has led to environmental degradation. Many human right
groups have campaigned against the use of cyanide in gold mining, which has even resulted in
lawsuits to some gold mining companies in Thailand.
Economically gold mining brings about more revenues to a nation, thus bringing about
sustainable development. This mineral is much essential to people’s wellbeing. Gold mining in
Thailand has resulted in creation on many job opportunities, thus raising the living of standards
of those people working the gold mines. In terms of infrastructure, many roads have been
constructed to opening up the areas in which these operations are being carried out. When looked
at this direction mining have many positive implications in both the lives of the individuals and
also on the nation as they rely heavily on the revenue collected from those companies.
Conflicts exist between the mining companies and the local community. This is because
the extraction of gold from the surface presents challenges and risks to sustainable development.
Although many advantages are associated with, and this mineral is essential in the lives of the
people, the community is suffering from these operations. The community is fighting against
water pollution as a result of this mines; the noise produced from these companies also possess a
2
Jain RK, Cui Z “C and Domen JK, “Environmental Impacts of Mining” [2016] Environmental
Impact of Mining and Mineral Processing 53

great impact on gold mining. This environmental-related and the related social problem is
triggering the action of a human right activist who has heavily affected this sector when fighting
against these vices. Many villagers in Thailand have demanded to be compensated for the
damage that is caused to them and their environment by these companies. A good example is the
Tungkum mining company where local protested as they were badly affected by the gold mine
that was set at Loei Province in the Wang Sap hung district.
There is an ongoing case between Australia and Thailand, which is commonly referred to
as the Kingsgate versus Thailand3. In this case, which will be analyzed later into details, the local
people accused a gold mine of leaking poisonous waste that led to critical health issues to many
people as well as affecting the growth of their crops. As a result of this accusation, the Thailand
government responded by suspending the mine and later stopping the all gold mining activities
that were taking place in the country. New mining law was enacted that seriously affected the
operations of the mines. Instead of the affected people receiving payments for the harm caused to
the opposite was happening. The involved Australian owner of the mine has been suing the
government to be compensated millions of dollars under the free trade agreement as a result of
an agreement between Thailand and Australia.
In this thesis, gold will be critically analyzed as a resource, a deep examination of the
characteristics of the gold will be looked at, and also the gold extraction process. The legal
regime of Gold mining in Thailand will be analyzed, geological, social; impacts, environmental,
and also the economic impact of gold mining will be well discussed. The case of Gold Mining in
Thailand and gold mining in china will be analyzed to look at the difference that exists in the two
Kingsgate versus Thailand (2017) 23 EHRR 413

3
countries. The conclusion regarding the challenges of environmental 4, social, and human rights
impacts on gold mining in Thailand will be discussed and also the recommendations that could
be used to improve gold mining condition.
CHAPTER TWO
GOLD AS A MINERAL RESOURCE
2.1 Characteristics of Gold
All those things that man can sense in the universe appear to have one or several
chemical elements. An element can be said to be a pure primary substance that cannot be split or
broken down further using artificial means. All those materials are made up of elements and are
4

found in the universe. Gold is one amongst the naturally occurring elements that exist on earth.
There has never been any other natural substance that has been found to destroy gold 5. Gold can
only be destroyed using chemical means by dissolving it, but still, it remains to be gold only in a
dispersed state.
It has been recently discovered that gold can be mined through artificial production by
taking lead metal through atomic bombardment, which is also another important metal element.
This process is considerably expensive, even exceeding the value of money of the resultant gold.
The production of gold has never been on a commercial scale, and there has been a discovery of
a theory which is claiming that gold which is being mined on earth to have been some of the
nuclear incinerators of stars which disappeared a long time ago and that planet earn is the only
remaining as part of the wreckage.
Gold has its scientific symbol as AU with its number on the periodic table of the element
being 79. On the periodic table, gold is under the transition metals. Gold does not either does it
get attracted to magnets, meaning it is not magnetic. However, gold is a metal with an excellent
capability to conduct electricity. The ability of gold makes it an excellent resource to be used in
electrical appliances, especially where transmission or electrical conductivity is required. Due to
its value, gold is expensive, and thus using it in conducting electricity appears to be costly, and
affordability of such items would provide below. Gold has its melting point at 1945 o F and
therefore cannot be quickly melted by low-temperature levels.
The high melting point of gold means that it cannot be easily destroyed making it a
durable as well as an active material to use either in electrical conductivity and also in making
5
Li ZW and others, “The Mineral Characteristics and Occurrence of Gold in Nali Gold Deposit,
Guangxi” (2017) 936 Advanced Materials Research 2383

other items which use a lot of heat and electrical energy to operate 6. Gold can never be corroded
by moisture; neither can it be oxidized by both water and oxygen effects or be destroyed by
apparent acids like ho various other metals are affected. Wherever the deposits of gold are, let’s
say inside a mountain or even the bottom of an ocean, the deposits will forever remain static at
that point unless that particular moment man will reach out to take it up or it gets displaced by
the natural forces.
Gold is one of the softest metals known on earth having a softness of 2.3 on a hardness
scale of 10, and this aspect provides gold with its incredible malleability. This means that the
precious metal can be easily minced, warped, trolled, and even enfolded into any types of various
forms one wishes to make it look like without tearing it apart. Gold metal is yellowish, and the
metal is easily milled so thin in that it becomes shining and transparent solid sheet and still
stands fit and strong gold. The thin layers of gold have been said that they can be produced so
tiny in a way that as many as quarter a million can be stacked together to each on top of the other
to make up a pile which is elevated one inch high only.
The thin gold sheets have a distinguishing quality of allowing penetration of sunlight
through them, and still, a big portion of infrared solar rays is reflected through them. Many
organizations, therefore, are using window glasses made of the thin sheets of gold due to its cost-
saving habits on energy which would have been used in regulating the amount of heat in the
offices in the summer period. The same films of gold have been useful to astronauts since the
helmets they use are made of gold to enable them to reflect the rays of infrared, which are in the
space.
6
Yannick IY, “Management of Efficiencies of Mining Equipment” (2018) 07 Industrial
Engineering & Management

Gold is malleable, this is because of its extreme flexibility, which makes it easy to draw
wires or threadlike forms from gold without it becoming brittle or breaking. A single ounce of
gold is said to be drawn as thin as possible in a way that it can stretch out a continuous length of
35 miles7. This is what today's world requires especially the industry of electronics where they
want to make up circuits with chips which are pinhead sizes. Considering its high conductivity in
electricity, its strange confrontation to corrosion and its squashy characteristics, there is an
increased demand for gold by the electronic industry. For these reasons, therefore, many
electrical appliances today have gold used in their circuits such as televisions and calculators are
some of the instruments whose courses are made up of gold.
The weight of gold is another distinctive quality of the resource, and this appears to be
the most reason why many prospectors go for the material other than the value held by it. Gold is
one of the most substantial metals on earth due to its extreme density. The real gravity of gold
stands at 19.6, and this means that an equivalent amount of water measured in volume or mass is
equal to 19.6 times less than the weight of gold making it clear that gold is a heavy metal. The
weight of gold is said to be greater eight times more than quartz rock, a mineral which is usually
allied to gold when found in the form of hard rock. The weight of gold is approximated to be
1187 pounds per cubic foot of gold8.
Gold cannot be said to be the most valuable asset metal, but it is the very most sought
expensive metal in the world. The world today is accepting gold to be an exchange item for
7
8
Stropkov KI and Berger RV, “Mining-and-Processing Technology at UGC Gold Mining
Company” [2017] Gornyi Zhurnal 11

goods and services. Pure gold is very expensive, and a single cube of gold is valued at ten
million dollars. This clearly shows how valuable gold is because it does not take much of it to
amass a substantial amount of wealth. When gold is in natural form, it is beautiful in look and
vibrant substance. This is clear from the gold miners who claim that it is not advisable to look for
a long time at any significant amount of raw gold because it might bring a condition which is
known as gold fever. Gold fever affects various people in distinct ways.
This ability makes golds a fascinating metal in the production of systems for electronic
control in high-end electrical equipment. The electronic systems made up of gold becomes very
robust, considering their highly resistive element to the environmental conditions and hence
remaining conductive for very periods. The metal is also highly resistive to acid, and it is for this
reason that the metal is very useful for dental medicine when undertaking dental filling because
the fillings of gold are not attacked by food acid and also the natural acid in the mouth.
2.2 Gold Extraction Process
Although gold metal is rarely found on earth, the precious metal can be found
everywhere on the planet in the 16-kilometer-thick Earth’s crust. The amount of Gold mining
underground and the extraction of gold in the earth is relatively small, and this makes gold
mining somehow not worth doing. Gold metal usually exists in two types, including the primary
gold and secondary gold. When extracting the primary or the mountain gold, a substantial effort
is required9. There exist several methods for freeing the gold particles from their solid mantle in
the extracted ore underground. The methods discussed below will be in terms of their
importance.
9
Yang Y and others, “Gold Extraction from a High Carbon Low-Grade Refractory Gold Ore by
Flotation-Roasting-Leaching Process” [2015] Rare Metal Technology 2015 63

Cyanide Leaching
The cyanide leaching process is used where there is a high concentration of gold on the
earth, making it worth extracting for the industry undertaking the task. The process involves
crushing the rock bearing the gold into powder or sand. The crushed powder and sand are
stacked into masses, pilasters or kept in a tank, and then it is mixed together with the solution of
sodium cyanide which is a mixture of the sodium salt of the acid of hydrogen cyanide. The acid
performs its action this way; the gold is detached from the rock dust in which it is attached to,
and then it is transported in the guaranteed form which is in chemical form in the fluid
outflowing acid.
After transportation is done, the filtration process starts where gold is sifted from the
percolate solution where dust containing zinc is added to the solution, and then the metal is
washed to remove any stains of zinc that might have detached on the metal and then it is dried
up. The raw gold recovered is then refined to become fine gold later. This method has major
reservations where many people are against the method because it is an environmental threat as it
releases very poisonous and very flammable hydrogen cyanide acid. The flames of the acid pose
a threat to human life as well as the environment.
When the removal of impurities and pickling of gold is over, the nuggets of gold are
obtained. It is after the smelting of the gold to obtain gold ingots that the desorption electrolysis
is conducted again with high efficiency and low energy consumption and at very fast speed. This
is because the system is free from cyanide because the mineral has been already purified.
Amalgam extraction process

The oldest technical method of obtaining gold from the ore is the amalgam process which
was used in ancient times. The amalgam process also starts by crushing the rock, holding the
gold into fine sand and then adding mercury to the crushed sand, which is in the form of dust.
The unique properties of gold are significant in enabling it to detach to the surface of mercury.
Gold being a shiny metal forms a silvery shining alloy to the mercury solution, and this is what is
10
referred to as an amalgam. The amalgam settles at the bottom of the container holding the
mixture, therefore, making it easier to separate gold from other minerals which are get dissolved
in the solution. The amalgam method is also environmental threatening because it involves
mercury, which is a very poisonous substance when exposed to the environment.
The choice of using mercury in gold extraction was because it can form amalgams with
almost every metal except platinum and iron. The extraction process using mercury has several
drawbacks, not including the hazardous effect, and that is it consumes a lot of water do undertake
gold extraction effectively using the amalgam process. Mercury is very sensitive to water and
other things including residues of oil and therefore will not allow gold to detach itself to it if
there exists any water or oil in the ore from which gold is being extracted or even in the stages
when the extraction is underway. The process of gold extraction has been identified to be more
effective when dealing with an ore ranging between 100 to 325 lattices, allowing for proper
exposure of the surface to the gold.
When the ore is crinkled until it becomes sand or dust, rollers of the barrel type are
introduced, and the crushed ore is placed in them. Once this is done, rollers are turned at a
slightly slower speed to ensure the ore is properly covered with the compound of the mercury.
The rollers at several occasions have grinders in them to allow the refine the ore further. The
10
“The Impact of Gold Mining” Worries of the Heart 69
reasons why the rollers are rotated at a slower speed is because small particles of mercury may
form, and this will hurt the entire process. 11Water, which is used in separating the waste ore
from the amalgam is necessary for speeding up the process. When the process of separating the
amalgam from the waste dust, the amalgam is then put into a retort device, and this is where the
mixture is heated to vaporize the mercury and release free gold. The freed gold is washed to
remove any stains of mercury while the vaporized mercury is collected in a separate container
for reuse.
Electro winning Process
Electro winning process is the process by which gold is extracted without using any toxic
substance which is environmentally unfriendly, and it is for this reason that it is frequently used.
The method applies an approach of electrochemical. Using this approach, not only gold is
obtained from the final result, but other metals are extracted too, which are usually attached with
the gold in the ore. Such metals include zinc and copper, and it is through the process of
extracting these metals that the resultant elements contain gold in them. In the electrolytic
process of cleaning the gold-bearing rock and other minerals, it is the anode that activates the
precious metal in the rock filth. The pure metal is used to with the cathode.
Refractory Ore processing
The refractory ore process of gold is the approach through which those the obstinate ores
from which gold cannot be extracted using other methods is done using this process. These ores
which are extracted cannot provide for the recovery of gold with the use of the common gravity
11
“Gold and Gold Compounds” [2016] Biogeochemical, Health, and Eco toxicological
Perspectives on Gold and Gold Mining 1

12
concentration or the method of leaching cyanide directly. The most refractory ores entailing
finely gold is scattered or is available in the sulphide matrix solution, especially pyrite,
pyrrhotite, and arsenopyrite. Gold is allied with tellurides; the base metal sulphide containing
lead, zinc, and copper have the values of gold/silver; the presence of gold is in carbonaceous
ores, and that silver is released through the gangue matrix using an oxide of manganese which is
complexed.
Bio-oxidation is the process through which water solution is used to eliminate Sulphur
using Sulphur consuming bacteria. Sulphur is oxidized biologically using the bacterium
Thiobacillus ferroxidase under optimum conditions. This process is advantageous because it
utilizes air under normal circumstances of the atmosphere rather than oxygen. The limitation of
this process is that it has long-time retention because the oxidation of the bacteria rate is slow,
the required cooling due to exothermic nature of the reaction and lime addition to adjusting the
level of PH. 13Cyanide is allowed to dissolve gold by the carbonaceous ore and thus it quickly
adsorb gold back to the active carbon in the ore. The process through which gold is treated
includes chlorination to deactivate carbon, roasting to burn the carbon away and carbon-in-leach
which introduces a high activity carbon to differently adsorb gold which is efficiently detached
from the slurry leach. 14The refractory process, however, is very expensive and only economical
when dealing with higher-grade ores and high processing rates.
12
13
“Gold Mining Opportunities and Threats” [2015] The Gold watcher 251
14
CHAPTER THREE
LEGAL REGIME
The legal system in Thailand is based on civil law. The mining industry in Thailand is
under the ministry of industry and operations of mining companies are also regulated by this
ministry and also by the indigenous mineral industry representatives at the province level.
Various agencies of government also have some powers vested to them over some elements of
mining projects. Many laws regulate the mining industry in Thailand. 15Many bodies ensure that
the law is administered. In recent past, many amendments have been done the law as that were
governing the gold mining operations to protect the environment as well as the health of the
community. The principle law in Thailand mining industry is the Minerals Act (1967), which
was effective until 2017 in august 28th. Another law governing gold mining in Thailand is the
Mineral Royalty Rates Act (1966).
These laws are subject to change and hence amended as the need may arise. The Minerals
Act was amended in the year 2002, where the minerals act no. 5, governing the onshore and the
offshore exploration, processing, and mining and also the transportation of minerals. Minerals
Royalty Rates Act deals with the rate of royalties to be examined for various kinds of minerals.
A new mineral Act BE 2560(2017) was introduced in August 2017 repealing ten laws. Many of
the existing mineral rights were still applied in the amended act. According to the new Minerals
act regulations, the rules governing the minerals will be effective as from August 2019. By 31 st
15
Yoshida O, “The International Legal Régime for the Protection of the Ozone Layer” [2018] The
International Legal Régime for the Protection of the Stratospheric Ozone Layer 333
March 2019 there were six ministerial regulations, ministry of industries has issued two orders,
and also fifty-three notifications and four orders issued by DPIM which were as per the new
Minerals Act. These results were posted in the Thai language in the DPIM website.
There was a brief provision that under the Minerals Act that any application surrendered
to prior the effective date of the act will be seen as an application which lies in the Minerals Act
and thus will be taken to be in the rules as supported in the Act16. The licenses which were issued
before the amendment of the act will be deemed as effective until the date of expiry. According
to the obligation between parties and the Thai government, it will also be held effective until the
expiry of that obligation Under the Minerals Act. This includes the obligation in which the
Ministry of industries and the DPIM had agreed. Mining companies are given new obligations
under the Minerals Act and the Ministerial Regulations notifications. The new Minerals Act aims
to protect the Environment and decentralize the administrative powers.
New mining technologies which do not affect the health of individuals are encouraged
under the new mining act. The individuals living in the areas where gold is being mined are also
taken care of or considered in the New Mining Act. The MOI is mandated to take charge of the
new Minerals act regulations through the issue of orders and notifications to the people who
breach the regulations. To make the administration effective a National Mineral Administrative
Policy Board was formulated with the DPIM director-general being the Co-secretary with the
department of mineral resources acting as a secretarial office in that board. Strategies and other
important policies are formulated by the NMAPB committee while ministers are advised on the
regulatory matters and issuing of notifications by the Mineral committee. This committee also
advice on the issuance of licenses and revocation when a breach is evident.
16
The extent into which Thailand government controls the Gold mining rights and the
jurisdiction and the rights given to private parties and also whether there is a distinct legal regime
for the third parties to get rights of mining in Thailand are also made clear in the Minerals Act.
According to the act the rights to mine gold in Thailand is granted by the ministry of industries
failure to which a legal proceeding may be followed if it is evident that another body has
assumed the rights of MOI and grant the rights to a mining company. The law states that no
individual has the right over mining in Thailand service if he has not obtained a mining lease
from the Ministry of industry. According to Thai law, the minerals, including gold, belong to the
government, not individuals. When the mining rights are granted, they do not award titles to
minerals in the service.
In terms of the number of mining leases, the Act does not specify the limit which can be
acquired by a single individual. 17The licenses given are valid for not more than five years, but
we have other prospecting licenses with differing number of years. The Acts gives a space for
the cancellations, revocation and also dismissing applications for mining licenses. Once a license
has been granted to a gold mining company it is obligated to pay mineral royalties fees and other
special contributions. The rate at which royalty fees are deducted is established to be at 30%. The
act also provides for the schedule fee in which the minister of the industry has the rights to
reduce. The individuals and companies who were holding the licenses granted under the old
Minerals Act were advised to go through the new act to understand the transitional provisions
carefully as in many cases they are subject to rules prescribed under the new Minerals Act.
17
Chompunth C, “Role of Public Participation In Environmental Impact Assessment In Thailand”
[2017] International Journal of GEOMATE

Many laws and regulations have been enacted in Thailand to control gold mining
operations that lead to impacts on the environment, social conditions of people living in those
areas as well as the impact on the plants. 18Due to fighting against gold mining Thailand have
been converted int a war zone. To avoid this from escalating the Thailand government have
enacted regulation to govern the gold mining act. The law regulates the locals from being
exploited by the rich owners of the mines. A situation occurred where men wearing masks
evaded the Loei village with knives and guns threatening the residents and beating them for
fighting against gold mining. This is evident in which many residents protest against Tungkum
limited company where they said that this mining company contaminated their lands and water.
Mining of resources is much beneficial to a country, but mass extraction leads to
environmental degradation and other health-related issues to the people living around the mining
areas. The military government in Thailand is coming up with new mining legislations. Mining
Acts enacted contains changes that affected the mining companies and also the local villages.
When these laws were enacted, the government consulted different stakeholders. Activists and
other community representatives had a great impact on the mining process as they spearheaded
their concerns based on the potentially negative effects. There are two aspects of the mining act,
the first aspect is the formulation of the mining committee at both the provincial and also the
national level that was believed to stop representations of people and the second one is lack of
detailed regulations on the restoration of areas affected by mining.
18
Laws required that the mining company to have a restoration plan for underground
mining and place restoration security in the areas where mining is taking place. 19It also requires
the mining companies to have remedies for those people that will be affected by their activities.
(Sections 81(8) and 81(9) under this law there is no statement of necessary preoperative plans for
restoration for mining pits that are open including the mining industry. The summary in the
minerals act new laws in gold mining included the obligations of the operators in the inclusion of
the requirements to give guarantee for the rehabilitation of areas affected by the mines. Also, it
aids for the individuals affected by the mining activities Although these laws are well postulated,
the law does not define well what restoration means, which can in turn cause disagreements as
different parties interpreted the word restoration in different ways.
CHAPTER FOUR
GOLD MINING IN THAILAND
4.1 Geological Impact
Geology is the scientific study of the Earth, including the study of what materials it is
made of, material structure making the earth and how those materials are acted upon. It also
entails the study the existing organisms that have occupied the Earth. The study of how the
materials making up the Earth as well as the processes and organism have transformed over time
is a significant part of geology. Goldmining in Thailand has greatly impacted the geology as the
19
Freudenberg WR and Gold R, “Ranching, Mining and the Human Impact of Natural Resource
Development.” (1989) 18 Contemporary Sociology 90

miners try to get more gold for commercial uses. It has not only destroyed the beautiful scene of
20
the world, leading to environmental degradation. Among those leading to geological
degradation include waste rocks from gold mining, which include sandstone, siltstone, massive
sulphide, limestone, among others. Most of these waste rocks contain minerals rich sulphide,
which is significant to produce acid mine drainage, and this is detrimental to the health of people
living around the mine area.
When gold mining is done, there is open-pit which is left as a result of that. These open
pits are dangerous to human beings as well as animals, and therefore, they become life-
threatening. The holes also destroy the beautiful scenery of the environment. These mine areas
should be rehabilitated to ensure they are covered to ensure they do not pose any danger.
Considering that gold-bearing rocks contain various minerals, some of which are harmful to the
environment, especially when exposed. Open pits in Thailand have led health problems due to
the poisonous gases they release. This is especially when rains and oxygen from the air gain
access to the pits leading to oxidation of the sulphide, thus releasing sulfuric acid leading to acid
mine drainage. The acid generated from the mines pits concentrates the world to the deep waters
21
making the water acidic. The acidity in water has become life-threatening, especially to the
aquatic life where there have been many deaths of aquatic animals. Thailand citizens have also
20
Sengani F and Amponsah-Dacosta F, “The Application of the Face-Perpendicular
Preconditioning Technique for De-Stressing Seismically Active Geological Structures” (2018)
127 Mining Technology 241
21

been affected by this due to lack of clean and safe water for drinking leading to many diseases as
a result of consuming contaminated water.
The waste generated from the ore-bearing these precious metals are large in amounts with
large tons of copper, zinc, and other waste minerals resulting from gold mining activities. These
wastes can be toxic, considering that they may contain elements which can be harmful to the
environment. 22The wastes dumped in large amounts have taken much space of the earth, and this
has led to overcrowding in Thailand due to lack of expansion space. Gold mining has also led to
people displacement as the government seeks to extract gold from their homes, and this has led
to overcrowding in areas where they are being taken. Displacement leads to distraction and
inconveniences of the way people live.
The waste products resulting from gold mines in Thailand are mostly dumped into ponds
which are made from the valleys which are naturally existing where these bonds are secured
through impoundments. Recently, it was established that around 2700 tailings impoundments
existed and that 7 to 10 major failures occurred. This is clear where several mining disasters have
been recorded where more than 2 million tons are said to have been released to local rivers. The
waste products also contain a poisonous substance sodium cyanide which, when consumed by
humans, will lead to health issues. May individuals in Thailand are affected by these substances
causing lashes in their skin as well as other health conditions. 23People have died due to gold
mining processes because of the resultant gases leading to health problems and eventual deaths
22
23
Stropkov KI and Berger RV, “Mining-and-Processing Technology at UGC Gold Mining
Company” [2017] Gornyi Zhurnal 11

of many locals, especially the miners who are highly exposed to these poisonous substances.
These actions by the miners have led to the protest by the locals demanding for their rights
considering that their water is contaminated with poisonous substances detrimental to their
health.
Gold mining in Thailand has led to erosion, sinkholes formation, biodiversity loss, and
soil contamination, and the groundwater and surface water have also been affected by chemicals
from these processes. The massive mining in Thailand has greatly influenced the supply of
groundwater. This is because the interaction of water and alteration resulting from geological
material disturbance, several substances including water, metals, organic compounds and other
trace elements become mobilized, and this makes them dissolved thereby affecting the quality of
groundwater. Considering the other naturally occurring contaminants, the activities of mining
also results in the pollution of groundwater due to the leaking storage tanks underground,
contaminant spills and others.
Geological impact also includes faults in the rock mass. The fault has been defined as the
volume of rock discontinuity or fracture of a planner across which there has been a crucial
displacement. The acceleration of the rock movement process along a geological displacement
24
plane is brought about through the subsistence of strata. Faults result in the occurrence of
surface steps due to the irregularities in gold mining. The main reason causing these faults
causing subsidence are shallow extraction, weak overburden, and discontinuities in geology.
These faults are vulnerable to becoming reactivated during subsistence mining resulting in fault
scarps generation leading to damage to the structures of the land. Many subsistence sinkholes are
24
Gold RL, “The Community Before Development” [2017] Ranching Mining and the Human
Impact of Natural Resource Development 17

occurring along the fault plane at shallow depths in Thailand. These sinkholes have an economic
impact such as the form of surface loss and underground property, work disruption, loss of
production, and sinkholes filling.
Fissures is another geological discontinuity occurring in brittle rocks. A fissure is an
opening originating from the fracture process. Fissures widen up due to soil erosion or at some
point due to weathering, and their occurrence is connected to natural forces, which are tectonic
movements. The bedrocks which are covered by weak clay and sand soil are subject to
weathering and consequently leading to degradation of weak rocks. Due to these forces which
move the earth towards the center of gravity, fractures occur leading to escarpments. Thailand,
due to extensive gold mining, has the risk of sinking because these holes might develop
fractures, which would eventually cause escarpments. The stability of the earth in areas where
gold mining is done is very weak and therefore, any time that might sink.
4.2 Mining Management
Minerals such as gold are very important for the functioning of modern society and
economy. There are great economic opportunities that arise from gold mining in Thailand.
Although gold mining possesses good economic advantages, it creates a very big challenge and
risk to both the people involved in the mines as well as those affected by the mines. 25The most
important challenge of Thailand and other countries where mining takes place is to manage to
mine in a way that leads and contribute to the country development but at the same time does not
jeopardize or cause negative effects to the nation thus leading to sustainable development. The
25
Roongrerngsuke S and Liefooghe A, “Attracting Gold-Collar Workers: Comparing
Organizational Attractiveness and Work-Related Values across Generations in China, India and
Thailand” (2013) 19 Asia Pacific Business Review 337

management of mines is a critical process and occurs in stages that should be well taken care of.
From mine exploration to the closure a critical and a serious assessment of the impacts of both to
the environment and social should be well considered.
Mining management means controlling, governing and also organizing the mining
activities. Critical key personnel are involved in mineral management in Thailand. Management
of mining activities possesses many benefits including enhancing the safety of workers in the
gold mines, ensuring that the environment and geology are well maintained, raising the morale
for the workers, identifying the issues that are facing the mining industry as well developing
good controls through visibility. When the mining is well managed, it increases the quality of
both the process and the products, promoting good communication and empowers employees to
sustain their work. Mining management entails making appropriate decisions from an alternative
course of actions.
We have two types of management structures in gold mining management, internal
management and external management. Internal management entails those activities within
management which surrounds making of the decision such as the personnel, production and
organizational aspects while external aspects include all variables that are outside an
organization which are not necessarily within the control of top management 26. The external
management aspects that have an impact on gold mining include the Thailand government,
which mainly affects gold mining negatively, especially through giving suspensions to the mines
to protect its citizens and the environment. Human rights and environmental activist are also
external parties that affect the management of mines in Thailand. These groups fight for the
26
Tongcumpou C and Harvey N, “Implications of Recent EIA Changes in Thailand” (1994) 14
Environmental Impact Assessment Review 271

rights of the people who are negatively affected by the mines as well as fighting for
environmental conservation. Policies have been used in Thailand to manage gold mining
operations.
Planning as a management function in the mining industry is a part of mining
management that involves predicting the future and coming up with good strategies needed to
achieve the mining objectives in a country. The activities and resources are then organized in a
good way to achieve the set objectives. One activity that involves mining management is the
management of the risks that are involved during the gold mining operations. Management of
mines entails adoptions of good tools and application of health and safety policies and
legislations. Mining is much affected by conflicts as a result of the negative impact on the
environment as well as on the health of the people and thus mining management deals with
enacting good techniques and methods to minimize those conflicts. This Thailand is done
through mitigation and response management, which involves emergency preparedness in the
industry.
Various activities are considered as a part of mining management that includes
performance appraisal, management by objective, training and development and also the
corporate social relation and industrial relation. In Thailand, the legal process and the contracts
that are signed do not give good consideration to the wellbeing of the community as well of that
of the environment, thus creating a space for the emergence of conflict. The local community are
not given an opportunity in decisions about mining projects 27. As a result, to manage the
activities of the mine Thailand government is doing an environmental and health impact
27

assessment with and mine closure but when it comes to execution of the rules they make they
seem to lag.
In the management of mining in Thailand the mining business is controlled by the
ministry of industry, DPIM and the Ministry of Natural Resources and Environment (MNRE)
and the local mineral industry officials (LMIOs). Also, various agencies have powers to regulate
mining in Thailand. The government, as a result of gold mines negatively affecting the
community, enacted the Minerals Act to govern the operations of the mining companies.
Management of mines is delegated to the mining board, and the board may advise the ministers
on industry guidelines and the best practices in mining activities. With good management of
mining, the mining in Thailand, productive land can be protected, and the land can be converted
into other uses. Many gold mines do not close as a result of depletion of the gold, but due to the
effects, they are faced with which are against the wellbeing of the community. When these acts
are well managed, the problem can be resolved, and conflicts minimized.
Mining management act was also formulated with the objectives of ensuring that the
development of the country’s minerals resources is in line with the environmental standards
consistent with best practices in the mining industry 28. The act has an objective of protecting the
environment by monitoring and authorization of mining activities, requiring good management
of the gold mining sites and demanding an operator for a mining site to form, execute and
maintain a management system for the mine, for that drive, facilitate cooperation and the
consultation between different parties such as the contractors, workers on the site and also the
operators. The act also requires that every mine must be inspected and well-audited ton ensure
28

that it complies with the set standards and all the regulation governing the mining management
in Thailand. This act also helps in mining management as it specifies the role of every one of the
mining sites concerning environmental protection.
4.3 Environmental Impact
Many environmental challenges have affected gold mining in Thailand. Environment
deals with everything that surrounds people, including the plants, the earth, and both the living
and non-living things that are present in a certain area. Environmental pollution is a major
challenge facing the areas in which gold mining is taking place. Environmental pollution takes
different forms and usually negatively affects the natural environment. Noise, water
contamination are the best well-known pollutants of the environment when it comes to gold
mining in Thailand. This is regarded as pollution that is caused by foreign substances such as
dust. Environmental pollution has resulted in the rise of many environmental activists who are
fighting against the gold mines in Thailand to protect both the physical and also the biological
earth components. The government, in turn, have formulated laws which are aimed at conserving
the environment by regulating the acts of gold mining companies.
Thailand has now turned a war zone as a result of acts done by mining companies that are
leading to the contamination of water, thus leading to health effects. Many cases have been a
witness in which the government has suspended the operations of gold mining companies such as
the Kingsgate for damaging the environment as a result of dust these companies emit into the
environment. This suspension leads to lawsuits between the Thailand government and the
Australian company. The local's people are against the mines as the lands are degraded and also
the toxic sodium cyanide chemical used in gold extractions are causing serious pollution
affecting even the growth of their plants. The companies tend to be less concerned about the
environmental condition and tend to focus more on the profit they are making. Using the natural
resources at a higher rate than required lead to land pollutions, air as well as water pollution.
Law was enacted for the companies to restore the state of the environment after the mine,
but this was impossible. Mining of resources is much beneficial to a country, but mass extraction
leads to environmental degradation. 29The military government in Thailand is coming up with
new mining legislations. Mining Acts enacted contains changes that affected the mining
companies and also the local villages. When these laws were enacted, the government consulted
different stakeholders. Environmental Activists and other community representatives had a great
impact on the mining process as they spearheaded their concerns based on the potentially
negative effects this mine brings to their environment. An assessment for the environment should
be well done to ensure that the gold mining operation does not affect the mines in a negative way
failure to which a mining license can be cancelled and thus leading to a halt in the mining
activities performed by an organization.
The government understood the term restoration which was commonly used in the law as
that act of restoring the environment to the state it was initially before the mining took place 30.
This understanding was not the best as restoring the place to the state it was before is not
possible. For example, the government came up with an initiative of tree planting in the villages
that were affected by the mines but later these trees died, and the land was not restored.
29
30

According to the locals’ restoration did not only means restoring the grounds to the state it was
before but also restoring their health by making sure that those affected are concerned about thus
bringing about the community healing. Law was to be enacted to show that the water
contamination and noise were specifically from the gold mines with an attempt to avoid gold
mining company carrying a burden which is not meant for them.
One of the environmental pollutions is caused by water contamination. This has resulted
from gold mining and which led many villagers to protest after their blood was found to contain
toxic substances. Both population of people and those of the wildlife are negatively affected by
water contamination. 31Water pollution is caused by the use of the highly toxic sodium cyanide
used in the gold mines in Thailand. This has made it difficult for people living near this area to
use water unless the water is well treated and purified using an expensive process. Mainly water
is polluted because such golds are usually found in rivers. Areas where small scale gold mining
forms takes place there are fewer water contamination problems, but in areas where large scale
gold mining is don, then water is highly contaminated. This negatively affects the quality of
water.
Gold mining destroys wildlife habitat as the process involves moving a large amount of
soil and rocks in search of gold, which can be fatal to the surrounding wildlife habitats. Due to
the adverse effects of gold mining on the environment, it has resulted in accidents and risks. For
example, as the machines used in gold mines use fuels, they result in air contamination that
causes a risk of greenhouse gases that may negatively affect the ozone layer. Gold mining
accidents and leaks lead to more risk to the surrounding land and water resources. The waste
31

obtained from the gold ores needs to be kept behind a dam when these structures fail to lead to a
massive release of toxins. Gold mines companies must have wastewater treatment machines to
remove poisonous mercury and cyanide. When the machines fail, the results in contamination of
the environment.
Plants and other components of the environment should be well conserved. This will have
a great significance in that air will be well purified. Plants also act as water catchment areas. The
mining companies, as a part of corporate social responsibility, should have an initiative of
planting trees as a way of restoring the environment. Through CSR, these companies will reduce
the possibility of the locals protesting for acts done by the gold mines company. Lack of
environmental conservation is the major reason why gold mining is affected negatively. Mines
which do not conserve the environment should be ready to face the impact of an environmental
activist who can campaign for the closure of their mines. Though economically, gold mining is
associated with a lot of advantages, environmentally it is associated with many disadvantages.
4.4 Social Impact/Health Impact/Human Rights/Child Rights
Gold mining has both positive and negative social impact. A good example is that when
gold is used in the cultures of Thailand, such as during wedding, it shows that one is valued and
loved, thereby uniting people. During occasions, gold is given to people as a valuable gift, and
this brings about joy and happiness. 32Gold mining also improves the social standard of people.
People have alleviated poverty through working in the gold mines, thereby creating a social class
of rich people. Although there are positive impacts of gold mining, there exists a huge social
impact on the community and the surrounding. A good example of a negative social impact as a
32

result of gold mining in Thailand is the displacement of people living in areas where gold mining
operations are taking place. People even migrated in search of good conditions.
Gold mining in Thailand has been negatively affected by the social challenges, health
impacts, child rights, and also human rights. Mining in Thailand has affected society in a big
way. As a result of the health impact caused by water contaminations and inhaling poisonous
gases, many people living in those areas are sometimes forced to migrate to search for good
areas where they can live comfortably. Noise from the mines has resulted in hearing problems
for many people living near those areas. This has made many to move to other areas, including
moving to other countries.33 Earlier mining concern needed not the valuation of the impact before
getting the consent. Mining in Thailand has destroyed community health in many years. As a
result of health issues to Thailand residents, Thailand formulated a health impact assessment
(HIA)to improve the health of its people through policies.
Water contamination is one of the major cause of diseases that affect the health of
individuals residing in Thailand. This contamination result from gold mines and which led many
villagers to protest after their blood was found to contain toxic substances. Both population of
people and those of the wildlife are negatively affected by water contamination. Water pollution
is caused by the use of the highly toxic sodium cyanide used in the gold mines in Thailand. This
has made it difficult for people living near this area to use water unless the water is well treated
and purified using an expensive process. Mainly water is polluted because such golds are usually
found in rivers. Areas where small scale gold mining forms takes place, there are fewer water
contamination problems, but in areas where large scale gold mining is done, then water is highly
contaminated.
33
When wars emerge, they affect the peace of the community. In recent Thailand have now
turned a war zone as a result of acts done by mining companies. Many cases have been a witness
in which the government has suspended the operations of gold mining companies such as the
Kingsgate for damaging the environment as a result of dust these companies emit into the
environment which is negatively affecting the social life of people. This suspension leads to
lawsuits between the Thailand government and the Australian company. The local's people are
against the mines as the lands are degraded and also the toxic sodium cyanide chemical used in
gold extractions are causing serious pollution affecting even the growth of their plants 34. The
companies tend to be less concerned about the social and health condition and tend to focus more
on the profit they are making. Due to the rise of conflicts, people develop a negative feeling
towards the mines.
The negative impact received from the gold mining operations has led to the emergence
of Human Right groups to fight against the exploitation of the locals. Human Rights groups and
other community representatives had a great impact on the mining process as they spearheaded
their concerns based on the potentially negative effects. The related social problem is triggering
the action of a human right activist who has heavily affected this sector when fighting against
these vices. Many villagers in Thailand have demanded to be compensated for the damage that is
caused to them and their environment by these companies. A good example is the Tungkum
mining company where local protested as they were badly affected by the gold mine that was set
at Loei Province in the Wang Sap hung district.
The open pits that are left after the mining are creating a big health problem to the
residents. They become the breeding sites for mosquitoes and other insects, thus causing diseases
34
to the residents. These open pits are also prone to accidents. If people fall in the deep pi, they can
end up breaking or even dying, thereby affecting the peace of the community as well as
negatively affecting the human population.
The mining companies are going further to employing children to work in the mines.
These children are paid meagre salary, and their education is affected negatively. This has led to
the rise of groups campaigning against child violation. As a result of child labor. Many children
right have been formulated to protect the rights of the children, especially the one living near the
mines. These groups have led to the closure of some gold mining sites in Thailand. The
companies employing children tend not to be concerned about their health 35. As a result of
inhaling dust with chemicals such as sodium cyanide many children, even the one living near the
mines are much affected. This has led to an increase in health cost for servicing the health of the
minors living in the areas where operations are being carried out.
There have resulted in many social movements as a result of gold mining in Thailand. A
good example of such movement is the social movement against a gold mine in Loei province.
Many residents before the gold mining sites were set up they practised agriculture but once the
mines are set due to the way their crops are affected by the pollution from the gold mines are
forced to shift from agriculture to industrial culture which they are not so much knowledgeable
in. The many protests against the acts done by these mines have undermined the social and
health conditions of the residents in Thailand.
35

4.5 Economic
Gold is one of the most valuable economic resources in Thailand. Although mining in
Thailand if faced with very many challenges such as due to the pollution of the environment,
noise and water contamination, gold is one of the resources that has brought many economic
developments in Thailand. 36When Kingsgate gold mine at Chatree was closed, this led to a great
impact on the Thai economy. This gold mine was majorly accused of contamination and
environmental pollution by the people living near the mines. Although it was not much clear that
the contamination was too much, the Thailand government ordered the closure of this gold mine.
In term of size, this was the country’s largest gold mine by January 2017. Shutting down
frightened foreign investors and also left a great impact on the Thai economy.
This mine was able to produce more than 130,000 ounces of pure gold, which was
capable of generating about THB52 billion (US$1.5 billion) as the revenue to the Thailand
government. In this project, the Thai government received from the company around THB7
billion in terms of royalties. Gold mining brings about an environment of investing where many
people both from Thailand and also foreign people invested a large amount of money to Gold
mining projects. A good example is the Kingsgate Consolidated Ltd, which invested around one
billion US dollars, which were approximately THB35 billion in the Chatree gold mine. The
company had plans to invest one more billion if they were allowed to operate. Gold in Thailand
generated much amount of money in terms of billion-dollar, which were collected from the taxes
and the royalties and later injected into government projects.
This action taken by the Thailand government created a very complex environment for
investors, especially investors from other countries. Investors lost trust with the Thailand
36
government as it went against the terms of the Free trade agreement. 37The countries Neighboring
Thailand tend to grow faster compared to Thailand. Foreign Direct Investment (FDI) dropped by
73.8% from US$38.2 million in 2016 third quarter likened to US$146 million in 2016 second
quarter. Neighboring states such as Malaysia and Indonesia attracted meaningfully higher
amount during a similar period. Reduction in Foreign direct investment showed negative
economic growth in Thailand, and hence, the revenue collected in turn lowered, leading to the
lagging of the developments in Thailand. In case the mining operations of the Kingsgate project
was not put into a halt by the government the project was expected to report an economic growth
rate of 3.2% in the two years, that is, 2016 and 2017.
Due to the company’s operations in the remote areas, the companies improved the
infrastructures such as roads to open up the interior so that they can be able to transport their
products. Growth of the infrastructures in a country indicates positive economic growth.
Developments in the host countries were mainly brought by the investment of foreign
companies. Although the economic progress in terms of roads was positive, some local people
were affected negatively through displacements. The community near mines who majorly relied
on agriculture as a source of their income were largely affected by pollution which caused them
to shift from crop cultivation to other sectors which they had less knowledge on. As a result of
the positive economic effect the gold excavating had on the economy, it deteriorated the
agricultural sector. This indicated that gold extraction has both positive and negative effects on
the economy.
37

Another contribution of gold to the economy is the creation of employment in Thailand.
Many people have been given a job to work in the gold mines and also in the companies. This
has reduced the poverty level in the region. Although this is a positive effect, it has also rendered
may people who practiced agriculture unemployed as their crops were much affected by
pollution. Many contracts have been signed between different parties, thus giving each party an
obligation. During adding value to the ores, people are employed to work with the machines in
38
the mineral production process. Many people have also invested in gold mining and thus
earning profits from those operations. Gold is one of the most highly traded commodities as its
demand is very high compared to other minerals. Export volumes, for example, in terms of
jewelry, are very high and thus earns a lot of foreign exchange.
Unemployment resulted from the closure of the mines, and this may hurt increasing the
poverty level in Thailand where many workers were rendered jobless. This not only affects the
host country but also the parent country where the investors came from. The industry has
supplied enough raw materials to other segments supporting economic success, for example, in
the chemical industry as well as other sectors. There is an economic advantage associated with
gold ore processing of adding value as the natural resources are well exploited, thus having an
economic value. During gold mining, energy use during the extraction of ore is very efficient.
The economy can attain growth if the existence of the gold mining company and the community
is good. The government promised to help affected workers who were dismissed to find
alternative jobs.
38

Mining plays an important role in Thailand Economic development, and the results of
mining can be very positive to an organization. 39The economic impact of gold mining and the
benefits associated were overpowered by the environmental and health issues. The closure of the
mines has an advantage to the surrounding but a great disadvantage to the revenue and the
employment of people. Community development is a major advantage of mining. Gold is kept
and used as a measure of value. By the price of gold, an individual can tell the state of the
economy. Many citizen ways of life have been improved through economic development as a
result of gold mining in Thailand. Many companies earn a lot of profits from the gold mines due
to both the demand for gold as well as the price of the gold.
4.6 Ongoing Case Between Australia and Thailand (Kingsgate Versus Thailand)
There is an ongoing case between Australia and Thailand, which is commonly referred to
as the Kingsgate versus Thailand. 40In this case, the local people accused Australia gold mine
company which was undertaking its operations in Thailand according to the Free Trade
Agreement for leaking poisonous waste that led to critical health issues to many people as well
as affecting the growth of their crops. As a result of this accusation, the Thailand government
responded by suspending the mine and later stopping the all gold mining activities that were
taking place in the country. New mining law was enacted that seriously affected the operations of
the mines. Instead of the affected people receiving payments for the harm caused to them, the
41
opposite was happening. The involved Australian owner of the mine has been suing the
39
40
41
government to be compensated millions of dollars under the free trade agreement as a result of
an agreement between Thailand and Australia.
Thailand local people have accused many gold mining companies of leaking toxic waste
into their rivers and other bodies, thus bringing serious water contamination with the chemicals
that are used in gold extraction such as the sodium cyanide. These chemicals are believed to hurt
the health of individuals and thus can result in the death of not only people but also the animals
living near the gold mining areas. The health issues that arose from this gold mines controlled by
the Australian company by the name Kingsgate is what led the Thailand government to respond
by suspending the mine in the Chatree. This suspension later made the government stop the gold
mining in the country and called for the development of new regulations to govern the operations
of the mining companies to conserve the environment as well as the health of the local people.
A great ironic condition faced the residents of this affected area. Rather than the residents
receiving the compensation from the Kingsgate company for ruining their crops as well as the
harm caused to their health by the activities of the company the opposite happened and instead
the Australian company wanted to be compensated millions of dollars. The owner of this
company proceeded to the court, claiming that the operations were legally binding and were by
the Free Trade Agreement between Thailand and the Australian government. This company had
established the largest gold mine in Thailand, which was termed as the Chatree. This project was
the major and the biggest, which was undertaken by Kingsgate. The mines started their
operations back in 2001 in 280 kilometers away from Bangkok in a province known as the Phi
chit where agriculture was mainly the sector which was dominating in that area.
The villagers in this district were very annoyed with the operations of this company as
42
they were negatively affected by the mines. This company thus is faced with an ongoing
conflict with the people who conserve the environment and the locals as well giving them a hard
time to go on with the operations. The residents took the company to court, claiming that
Kingsgate is failing to mitigate damages. They also claimed that the permit granted to this
company was illegal. As a result of this suit, the court determined that indeed Kingsgate mine
had breached the laws regarding the protection of the environment and thus for further
investigations, the company was urged to submit the Environmental Health Impact Assessment.
In the year 2015, the operations of this company were brought into a halt by the Thailand
government for several months. Many tests were done during this time, and it was discovered
that it was true that the mined brought a lot of health issues for people living around the mines.
The doctors found that the blood and urine of those affected contained highly poisonous
substances. In response to the lab tests of the residents, the company agreed that it was a problem
caused by the dust that resulted from their mines and also the use of sodium cyanide in the
extraction of the gold. Many researchers acknowledged that this company lacked a true
consultation with the community. Although the mining was much beneficial to the company,
they agreed that their operations were indeed leading to both environmental and health issue, but
they insisted on being compensated.
This international arbitration was aimed at recovering the loss that the Kingsgate
company incurred although they have initially signed a Free Trade Agreement with the Thailand
government. They argued that the closure of this mine was unlawful as the license was expiring
42
at 2028 according to their agreement. Kingsgate had operated in this field since 2001 via the
Ankara Resource Public company. According to the government, they said that regardless of the
contract and the agreements with the company the benefits that they received from this mine
were fewer compared to the environmental and health issues that these mines brought to the
community living in the mining areas. Authorities led to the suspension to over forty days after
the urine test showed that the people were much affected by the mine operations. This ban was
late lifted by the Thailand government, although they did not show a willingness to compensate
for the losses that this company incurred.
The Kingsgate development took place after another conflict which occurred in another
mine with the name of Loei Gold Mine 43. As a result of the disagreement with the locals who
were blocking the access to Loei Gold Mine, the company responded by hiring over 300 armed
men who came to the villages and beaten up the villagers. This problem is what led to the
creation of the military junta, which was responsible for ruling the country, and this stopped all
the gold mining activities that were taking place in Thailand in 2017. This halt came as a result
of the effects the mines had on the environment and locals. Many human rights groups in
Thailand welcomed this closure. The government later lifted the suspension of the Kingsgate
mine though the company has not yet reopened due to the steep rise in the company’s share price
and this has made the company continue demanding for payments.
CHAPTER FIVE
CASE COMPARING OF GOLD MINING IN CHINA
China is the world major producer of gold. China had been previously rated as the third-
largest producer of gold in the world in 2006 but with the exploration made, China has been seen
43
to have expanded their production with the increase being estimated to be about 70%. China has
expanded gold production making it exceed any other country in the world. The country holds
about 7% of the world gold reserves. 44This is significantly small in comparison with the country
landmass although there has been previously no much exploitation of these resources, there
stands the potential of greater mines in the country as compared to other countries including
Thailand which have extensively exploited the resources. South Africa was the largest gold
producer in the world but has since been overtaken by China. China has many reserves which
have not yet been opened up.
The distribution of gold across the country is not found evenly and the main places in the
country where activities for producing gold include the provinces of Shandong, Fujian, Henan,
Hubei, and Liaoning. The mining of gold is one of the major activities in China where gold ore is
extracted from the deposits of hard rock. Several activities of mining are done in numerous river
systems in the southwest of China with the use of placers although these operations are less
extensive as compared to the lode deposits. The country is well renown to be rich in gold mining
from several decades. The miners from China took part in various gold rushes across the globe in
the early 1800s and they made up an important part of the population in numerous ancient towns
for mining in the U.S. these miners were recognized due to their courage for reworking ground
placers after abandonment of their use by the white miners leading to the occurrence of
California Gold rush.
Lack of scale and investment is one amongst the long-standing hindrance to gold
production although this has been transformed significantly in the recent past. One amongst the
44
Cullen R and Craw D, “Gold Mining, Gold Prices and Technological Change” (1990) 24 New
Zealand Economic Papers 42

largest state-run corporation in China is the China National Gold Group Corporation which
undertakes gold mining and the company accounts for about 20% of the country’s overall
production. There are other big companies for gold mining in China and they include Zijin,
Eldorado Gold, Synovus and Goldrea. The increased production of gold in China has been
brought about by the rising demand of the precious metal and hence the growing need to satisfy
the requirements of the population. 45The largest portion of the locally produced gold in China
remains in the country where it is used in the production of jewelry and various other items
useful in industries.
The economic outlook of the country is growing tremendously over the few years that
have passed and this has brought about various social class with the growing middle and upper
class desiring for more products of gold. Gold production in China has increased and this has
allowed the country to produce the needed gold in the past few years without necessarily
importing a large amount of bullion from several other countries. This means that China has
sufficient gold to cater to the needs of the citizens and even having a surplus for export. Gold
mining areas available in China are 3389 and production and exploration of gold is spread over
those areas where they are managed by around 400 companies for gold mining. Gold mines are
concentrated in the east of the country where most mines are medium-sized to small-sized and
grades are relatively high. Advancement in technology has facilitated deep prospecting thereby
proving additional increases in the reserves. New gold reserves have been identified in the
Jading area of Shandong proving which have been approximated to be 1840t while there has also
been identified gold reserves totaling to about 4000t.
45
“Gold and Gold Compounds” [2016] Biogeochemical, Health, and Eco toxicological
Perspectives on Gold and Gold Mining 1

Certain challenges in the domestic market have been faced where the production of gold
has fallen to 6% from 2016 to 2017 due to the low prices of gold. This has also been influenced
by the increased regulations in regards to safety and the environment as well as the rising costs.
The gold industry is seeking for expansion and thus an increased focus on identifying the quality
of the asset overseas. China is the largest smelter of gold is seeking to leverage its position and
thus the industry is looming for partnership in international business and joint ventures. This
focus is brought about due to the increased recognition about the benefits accrued with the
cooperation of the peers from overseas as well as the role played by gold within China’s
initiative called “Belt and Road” (BR).
China has significantly made various investment overseas where the gold companies in
China has made investments internationally of about US$4 billion from 2011 thus boosting the
reserves for gold with over 800t. The industry for gold in China is not purely engrossed on
expansion through acquisition but it is well informed about the trends in the market, through
innovation exploration and development both domestically and internationally. The gold mining
industry has over the years expanded to cover the whole value chain while also conducting all-
round exploration, production mines, processing, supply, sales, transaction and also an
investment. In today's business world, the mining companies in China are very keen to extend
their reach and drive to achieve growth.
The economic growth rate of China is at a higher pace as compared to other gold mining
countries especially Thailand. This is because China prioritizes innovation in terms of
technological advancement which makes the outlook of China, in general, to be bright than that
of Thailand. Another reason which might make China better off than Thailand is due to the fact
that China does not outsource outside companies to mine gold on their behalf as it is the case of
Thailand.
The chaos and conflicts arising in Thailand are less happening in China since China has
well-laid regulations governing their mining since the ancient times gold mining started although
they keep revising them to ensure they are up to date 46. This has led to cooperation and the
mining is not affected by politics. In the case of Thailand, the rules governing gold mining are
subject to alteration due to political interference where the prime minister can dictate anything in
regards to gold mining. This causes a lot of chaos and conflicts in the country. For these reasons,
Thailand has been far behind than China in terms of economic development although having the
precious mineral which can see the country thrive economically.
CHAPTER SIX
CONCLUSION AND RECOMMENDATIONS
6.1 Conclusion
In conclusion, many challenges of environmental, social and human rights impact gold
mining in Thailand. Gold mining brings about both the positive and the negative effect in
Thailand. Positive impacts include more revenues to a nation, thus bringing about sustainable
development, creation on many job opportunities for people residing in Thailand, thus raising the
living of standards of those people working the gold mines. In terms of infrastructure, many
46
roads have been constructed to opening up the areas in which these operations are being carried
out. When looked at this direction mining have many positive implications in both the lives of
the individuals and also on the nation as they rely heavily on the revenue collected from those
companies. In areas where mining is carried out, poverty is much reduced.
The negative impact of gold mining included water pollution as a result of this mines; the
47
noise produced from these companies also possess a great impact on gold mining. This
environmental-related and other related social problem has triggered the action of a human right
activist who has heavily affected this sector when fighting against these vices. People accused a
gold mine of leaking poisonous waste that led to critical health issues to many people as well as
affecting the growth of their crops. As a result of this accusation, the Thailand government
responded by suspending the mine and later stopping the all gold mining activities that were
taking place in the country.
The various characteristics of gold make it much valuable and expensive. Gold cannot be
said to be the most valuable asset metal, but it is the very most wanted expensive metal in the
world. The world today is accepting gold to be an exchange item for goods and services. Pure
gold is very expensive, and a single cube of gold is valued at ten million dollars. This clearly
shows how valuable gold is because it does not take much of it to amass a substantial amount of
wealth. When gold is in natural form, it is beautiful in look and vibrant substance. Gold metal
usually exists in two types, including the primary gold and secondary gold. When extracting the
primary or the mountain gold, a substantial effort is required. There exist several methods for
freeing the gold particles from their solid mantle in the extracted ore underground.
47
It is evident that the mining industry in Thailand is under the ministry of industry and
operations of mining companies are also regulated by this ministry and also by the local mineral
industry representatives at the province level. Various agencies of government also have some
powers vested to them over some elements of mining projects. 48Many laws regulate the mining
industry in Thailand. Many bodies ensure that the law is administered. The principle law in
Thailand mining industry is the Minerals Act (1967), which was effective until 2017 in august
28th. These laws are subject to change and hence amended as the need may arise. New mining
technologies which do not affect the health of individuals are encouraged under the new mining
act.
Environmental pollution was a major challenge facing the areas in which gold mining is
taking place. Noise, water contamination are the best well-known pollutants of the environment
when it comes to gold mining in Thailand. Social impact, Gold mining has both positive and
negative social impact. People have alleviated poverty through working in the gold mines,
thereby creating a social class of rich people. Although there are positive impacts of gold mining,
there exists a huge social impact on the community and the surrounding. Water contamination is
one of the major cause of diseases that affect the health of individuals residing in Thailand. Gold
is one of the most highly traded commodities as its demand is very high compared to other
49
minerals. There is an ongoing case between Australia and Thailand, which is resulted from
environmental, social and health challenges as a result of the mines.
48
49
The study clearly shows how gold mining in Thailand has adversely affected the geology
of the country. Goldmining in Thailand has greatly impacted the geology as the miners try to get
more gold for commercial uses. It has not only destroyed the beautiful scene of the world,
leading to environmental degradation. Among those leading to geological degradation include
waste rocks from gold mining, which include sandstone, sulfide, limestone, among others. Most
of these waste rocks contain minerals rich in sulfide, which is significant to produce acid mine
drainage, and this is detrimental to the health of people living around the mine area. Open pits
have been left out when mining is done and these pits are life-threatening to human kinds.
Mining activities have led to erosion, sinkholes formation, and soil contamination, and the
groundwater and surface water have also been affected by chemicals from these processes.
When comparing the case of gold mining in China, it is evident that China has grown to
the major producer of gold in the world. Lack of scale and investment is one amongst the long-
standing hindrance to the production of gold in China although this has been transformed
significantly in the recent past. China’s economic growth rate has been seen to rise at a
relatively higher pace in comparison with other gold mining countries especially Thailand. This
is because China prioritizes innovation in terms of technological advancement which makes the
outlook of China, in general, to be bright than that of Thailand.
6.2 Recommendations
The government of Thailand needs to ensure that the environment and people are
protected as a result of gold mining as well as realizing and enhancing the benefits accrued from
mining. The following are the recommendations for improvement in ensuring sustainability. The
government should come up with regulations governing environment which ensures adequate
environmental protection and establishing clear rules for investors. Environmental regulations
allowing for the adoption of more approaches of innovation such as regulations in regards to
performance and economic incentives should be permitted to the mining industries. there should
be the establishment of regulations and rules governing mine closure that enables for prevention
of huge legacies for the environment and costs to the public.
The government should ensure that the practices of gold mining are transparent as to
create trust where members of the communities will be notified of any action taken in regards to
gold mining, the government should also avoid in any circumstance exploitation of the locals.
The local communities and native people should be provided with a chance to raise issues and
have an open legal avenue where they can have a say in regards to projects of gold mining. This
includes but not limited to clearly stating the minimum standards for enough consultation and
consent, ensuring adequate investments in the affected communities as to raise the standards of
living and also offering an approach ion which affected people can use to access remedy.
The government should enact policies and guidelines governing the conduct of the
mining industries so as to minimize conflicts among the local communities. This will reduce the
opposition caused by the locals due to pollution brought about through gold mining. When gold
mining is done, there are open-pit which are left as a result of that. Thailand government should
devise strategies through which open pits should be covered to minimize the production of
poisonous sulfuric gas and this will enhance geological conservation.
Mining companies in Thailand including Tungkum among others should ensure
environmental conservation through a plantation of indigenous trees to replace the shrinking
plantation due to gold mining activities. The companies can collaborate with the local
communities in environmental conservation as this will have several benefits including
maintenance of green surroundings in a sparsely vegetated region, awareness of the community

about the need to plant indigenous species and also the relationship between the community and
the mines will be improved.
The waste products resulting from gold mines in Thailand are mostly dumped into ponds
which are made from the valleys which are naturally existing where these bonds are secured
through impoundments. There should be strict maintenance of the waste plant to ensure there is
no release of poor-quality waste and also ensure that the discharged waste volumes are in
accordance with the conditions permitted. The ponds into which waste products are released to
should be properly maintained and monitored to avoid waste discharges that exceed the permit
guidelines. The surface water dams into which waste products are drained to should be properly
lined to prevent percolation of the polluted water into the groundwater. There should be a proper
analysis of the groundwater to determine whether the unlined holding dams has leaked leading to
water pollution. This will enhance the reduction of health issues resulting from the consumption
of contaminated water.
An examination in which the quantification of groundwater pollution resulting from both
the tailing dams and other surface water bodies should be carried out to determine the safe water
for consumption. Data should be collected on a long-term period as to establish the level of
pollution and to devise strategies which will be useful in slowing down the movement of
pollutants into and within the groundwater. This will ensure that everything regarding the
pollutants is not missed as to leave any leakage of pollutants uncovered. Water quality should be
prioritized as to reduce health issues among the locals and therefore Thailand government should
investigate the causes of improved water quality in other gold mining sectors such as China and
utilize the results from the investigation in prevention and minimization of pollution in various
dumps in the country. Implementation of this measure will benefit the country in terms of
environmental conservation and financial loss reduction which the country will suffer due to
legal suits, discharge costs for wastes among other issues that might affect the country in future.
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THE CHALLENGES OF ENVIRONMENTAL, SOCIAL AND HUMAN RIGHTS

IMPACTS ON GOLD MINING IN THAILAND

lawsuits to some gold mining companies in Thailand.

Impact of Mining and Mineral Processing 53

an agreement between Thailand and Australia.

Kingsgate versus Thailand (2017) 23 EHRR 413

be used to improve gold mining condition.

GOLD AS A MINERAL RESOURCE

2.1 Characteristics of Gold

Impact of Mining and Mineral Processing 53

remaining as part of the wreckage.

electrical appliances, especially where transmission or electrical conductivity is required. Due to

therefore cannot be quickly melted by low-temperature levels.

Guangxi” (2017) 936 Advanced Materials Research 2383

the natural forces.

to make up a pile which is elevated one inch high only.

Engineering & Management

some of the instruments whose courses are made up of gold.

1187 pounds per cubic foot of gold8.

Guangxi” (2017) 936 Advanced Materials Research 2383

Company” [2017] Gornyi Zhurnal 11

2.2 Gold Extraction Process

Flotation-Roasting-Leaching Process” [2015] Rare Metal Technology 2015 63

a threat to human life as well as the environment.

Amalgam extraction process

mercury, which is a very poisonous substance when exposed to the environment.

exposure of the surface to the gold.

Electro winning Process

Refractory Ore processing

Perspectives on Gold and Gold Mining 1

Thiobacillus ferroxidase under optimum conditions. This process is advantageous because it

when dealing with higher-grade ores and high processing rates.

Flotation-Roasting-Leaching Process” [2015] Rare Metal Technology 2015 63

Mineral Royalty Rates Act (1966).

to protect the Environment and decentralize the administrative powers.

advice on the issuance of licenses and revocation when a breach is evident.

minerals in the service.

[2017] International Journal of GEOMATE

Mining of resources is much beneficial to a country, but mass extraction leads to

detailed regulations on the restoration of areas affected by mining.

different parties interpreted the word restoration in different ways.

GOLD MINING IN THAILAND

4.1 Geological Impact

Development.” (1989) 18 Contemporary Sociology 90

living around the mine area.

Preconditioning Technique for De-Stressing Seismically Active Geological Structures” (2018)

127 Mining Technology 241

Impact of Mining and Mineral Processing 53

a result of consuming contaminated water.

inconveniences of the way people live.

Company” [2017] Gornyi Zhurnal 11

contaminant spills and others.

Impact of Natural Resource Development 17

production, and sinkholes filling.

Fissures is another geological discontinuity occurring in brittle rocks. A fissure is an

4.2 Mining Management

Thailand” (2013) 19 Asia Pacific Business Review 337

the environment and social should be well considered.

We have two types of management structures in gold mining management, internal