MINING

Gold and tin should draw new investors

POST REPORTERS

Prospecting for gold ore continues to attract interest from investors while tin ore has tremendous potential for growth, according to Anusorn Nuangpolmark, the director-general of Primary Industries and Mines Department.

About 400 billion baht worth of gold is estimated to be present in Thailand, with the main ore deposits in Phichit, Phetchabun, Loei, Phitsanulok, Prachin Buri, Chanthaburi, Satun and Narathiwat.

Attractive world gold prices have drawn many miners to prospect for and develop ore in Thailand. The precious metal is currently trading around US$680 an ounce, compared with $240 in 2001.

According to Mr Anusorn, the department has awarded special prospecting licences for 60 tracts and another 54 tracts are under consideration. More applications to explore for gold ore in the early stages.

Tin ore, he said, also had great potential for development because the metal's price has almost doubled to US$15,000 per tonne, from $8,000 last year.

To encourage tin ore production, the department is amending the law to reduce ore royalties to more appropriate rates to make the ventures viable.

The amendment is being scrutinised by the Council of State, the government's legal advisory body, before being sent to the cabinet for approval.

The tract with the most potential for tin mining is located in the Andaman Sea, off Phangnga province.

Mr Anusorn said overall mineral production in Thailand was worth 39.5 billion baht last year, a 12% increase from 2005. The five minerals recording the highest values were limestone, lignite, gypsum, gold and zinc. The top five export earners were tin, gypsum, gold, tantalum and zinc.

The highest export volume was for iron ore, at 234,000 tonnes last year compared with 36,000 tonnes in 2005.

Yongyuth Petsuwan, the chairman of Mining Industry Council, said the council had repeatedly warned its members to strictly comply with the laws and regulations, especially paying serious attention to environmental concerns in areas surrounding mining sites.

After mining is finished, he said, the sites should be restored or redeveloped into farming areas to increase their value and improve communities.

Bangkok Post

Last Updated : Saturday April 21, 2007