Hot news: Akara Resources PCL a gold mining company filed a request for arbitration against the Thai government claiming damages of over 20 billion Baht.

Hot news: Akara Resources PCL a gold mining company filed a request for arbitration against the Thai government claiming damages of over 20 billion Baht.

Akara gold mining shocked the Thai government. The company filed a request for arbitration claiming damages of over 20 billion Baht. The arbitration will be held in Singapore, starting from March 2020. In 2000, Mr Chuan, Prime Minister of Thailand, avoided the disaster. Kingsgate, an Australian company, won the gold mining concession for the sites in Phichit, Phitsanulok and Phetchabun, and assigned the concession to Akara Resources Pcl, a Thai subsidiary company. The subsidiary operated since the establishment of the mine until 2007, resulting in the development of the area. During this period villagers complained about it with the Thai government. Moreover in the area, there was a long-standing conflict until 14th December 2014. Akara company shall suspend its business starting from 1st January 2017 as stated in Act 44 by the Thai government. After closing the mine, on 5th November 2017, Kingsgate’s owner proposed Thai government to negotiate the issue. Unfortunately, parties could not reach an agreement. Kingsgate started arbitration against the Thai government requesting compensation for damages incurred due to Thai measure for 22,672 million Baht (US$ 750 million). On one hand, Kingsgate tried to prove that the company did not do anything wrong and the business was terminated unfairly. On the other hand, the Thai government relied on the WTO framework. Accordingly, the government does not have to pay if the measures are justified by the necessity to protect life, human, animals and plants.