The Business Times
SUBSCRIBERS

Shuttered gold mine shows investor risks from Thai power grab

Gen Prayuth suspends gold mining under Article 44 of the constitution

Published Mon, Dec 19, 2016 · 09:50 PM

Bangkok

WHEN Thailand's junta leader-turned-prime minister used his absolute power to suspend gold mining - prompting an Australian miner's shares to plummet 19 per cent in a single day - he complicated efforts to attract foreign investors already spooked by military rule.

Prime Minister Prayuth Chan-ocha announced the order last week, saying that gold mining will be suspended from the start of the year in a bid to address health and environmental concerns. By issuing the order under Article 44 of the constitution enacted when his junta toppled the elected government in 2014, Gen Prayuth ensured it was "lawful, constitutional and final".

The most immediate loser is Australia's Kingsgate Consolidated Ltd, which through its subsidiary operates Thailand's largest and only commercially viable gold mine. Its shares dropped as much as 19 per cent last Wednesday and are down nearly 40 per cent since May 10, when Thailand announced the Chatree mine might close amid complaints o…

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Energy & Commodities

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here