Thai Government Lifts Suspension of Chatree Mine
Shortly before the meeting, the company was informed that the Thai government had lifted the “temporary suspension” of the Chatree mine, which is operated by the company’s subsidiary, Akara Resources Public Co. Ltd. Further, Kingsgate was advised that Akara’s application for renewal of its metallurgical processing license, which expired on December 31, 2016, could now be processed.
However, Kingsgate said it became clear that the Thai government would not be offering any monetary compensation for the substantial losses that company had already suffered as a result of the closure and expropriation of the Chatree mine, nor for the substantial expenses that would be incurred in connection with restarting operations at Chatree. Kingsgate was informed that the Thai government may be willing to provide other meaningful benefits in consideration of the shutdown of the mine.
In light of the foregoing, the Kingsgate board has determined that it is in the interests of the company to further explore the matter. Kingsgate has reserved its legal position under TAFTA and allowed a further limited period of dialogue with the government.