Thailand’s Cabinet on June 28 approved the controversial proposal by the country’s Industry Ministry to allow potash mining in Udon Thani, The Nation newspaper reported.
The ministry was given the green light to grant a concession to Asia Pacific Potash Corp. (APPC) to mine potash in Tambon Nong Phai, in Thailand’s northern Muang district, according to the report, citing Industry Minister Suriya Jungrungreangkit.
The Primary Industries and Mines Department will now start the concession process.
According to the report, APPC, a 100% Thai-owned company since 2006, wants to start mining as soon as possible, but the process will take at least six months before mining can begin.
The underground mine is expected to have capacity to produce 2 million mt/y of potassium chloride.
The decades-long proposed mining project has been endorsed by the country’s National Resources and Environmental Ministry and the National Economic and Social Development Council, and approved by locals in public hearings, according to the report, citing the minister.
APPC plans to mine a total of 33.67 million mt of potash during the concession, for which it has offered a fee of Thb16.6 billion (approximately $472 million at current exchange rates).
The Thai government earlier granted potash mining concessions to Thai Kali Co. Ltd. and to Asean Potash Chaiyaphum Plc.
As with the APPC potash mining project, Thai Kali’s Dan Khun Thot project, located in northeastern Thailand, in Nakhon Ratchasima province, and Asean Potash Chaiyaphum Plc’s project, located in Chaiyaphum province, have faced strong opposition from villagers and activist groups.