THAILAND

Thailand is a country with excellent mineral potential, although mining investment in the country had initially been slow to materialize due to the heavy emphasis on other sectors for economic development. However, Thai government policy with respect to mining has changed, reflecting an increasingly supportive role for the industry. Taxation and other incentives are available to investors in the industry.

Historically, Thailand has been one of the larger producers of tin, tungsten and precious stones. In 1996 royalty rates payable to the Government for gold projects was reduced from 10% to 2.5%, increasing interest in the gold sector. This has led to more exploration and in December 2001 resulted in the successful commissioning of the first modern gold mining operation in Thailand, Kingsgate Consolidated’s Chatree mine near Pichit. Another example is the Tungkam gold mine in Loei province, commissioned in 2006.

Recent revisions to the Mineral Act, the approval of the Padaeng zinc open-pit expansion as well as the issue of several Special Prospecting Licences, are strong evidence of government support for the emerging mining industry.

Prior to the collapse of the tungsten market in the early 1980s, Thailand was the world’s fourth-largest producer of the metal with peak production of 7,500 t/y. Today, the country produces only about 100 t/y. Thailand’s rich potential is directly linked to the widespread occurrence of granitic intrusives of the Southeast Asian tin-tungsten belt. In the 1970s and early 1980s tungsten concentrate was produced from a large number of small mines and a few larger ones.

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