Following the recent news reports on 18 December 2024, regarding the Central Administrative Court’s (“the Court”) dismissal of Akara Resources Public Company Limited’s (“the Company”) petition to revoke the order by the Director-General of the Department of Primary Industries and Mines (“DPIM”), the Company wishes to clarify the facts to promote a proper understanding among all parties.

• The judgment stems from the Company’s legal action filed on 2 August 2018, seeking to annul the DPIM order requiring the Company to address alleged leakage in TSF1 and ensure water quality in the project area complies with standards (“the Order”). The Company contested the Order on grounds of vagueness, lack of actionable detail, and reliance on a non-unanimous resolution of a fact-finding committee on conflicts, environmental impacts, and health concerns related to the operations of the Chatree Gold Mine. The resolution cited in the DPIM’s Order originated from a meeting of the fact-finding committee, where 7 members voted in favor, 6 voted against, and over 10 abstained. However, the total number of committee members was unclear, as no quorum count was recorded. The resolution was neither unanimous nor supported by a majority, as fewer than half of the committee members voted in favor. Importantly, the committee did not officially certify the meeting minutes. Written dissenting opinions by expert subcommittee members responsible for the study referenced in the resolution were included in the appendix of the final report. The appendix stated: “Certain members of the expert subcommittee expressed differing views on the final report. Details of these differing opinions are available in the appendix.” This indicates that the committee was unable to reach a conclusive agreement on the substance of the report.

• Both the Company and the DPIM have been actively working together to resolve ongoing issues in accordance with the Minerals Act, B.E. 2560 (2017) and the National Gold Management Policy, B.E. 2560 (2017). These efforts include the preparation of baseline environmental and public health data, the establishment of mining buffer zones, and the creation of risk insurance and health monitoring funds. These initiatives ensure that the Company’s operations meet international standards and have no adverse impact on the environment or public health. Additionally, the Company has developed plans for the closure and rehabilitation of TSF1, as instructed by the DPIM. These plans, prepared under the guidelines of the Minerals Act, B.E. 2560 (2017), were submitted for approval per document No. Or Gor. 0512/4801 dated 14 September 2017. The Company has consistently implemented these plans, with rigorous quarterly inspections and monitoring conducted by a multidisciplinary team, including representatives from DPIM; Bureau of Primary Industries and Mining Region 5 (Phitsanulok), Provincial Industry Offices (Phichit and Phetchabun), Regional Environmental and Pollution Control Office 4 (Nakhon Sawan), Provincial Natural Resources and Environment Offices (Phetchabun and Phichit), Local administrative organizations. These collaborative efforts led to the successful renewal of the Company’s mining leases and metallurgical processing licence in 2021 and 2022, respectively.

• The Company has not remained passive on issues related to TSF1. To ensure clarity and provide reliable, systematic data, the Company initiated the “Stability and Leakage Assessment of TSF1” project in collaboration with King Mongkut’s University of Technology Thonburi. This study was conducted following the work plan approved and endorsed during a meeting with the DPIM executives and representatives from relevant agencies on 28 March 2022.The study’s final report, dated 13 September 2024, concluded that TSF1 shows no signs of leakage. The Company submitted this report to the DPIM on 18 September 2024.

• Since resuming operations in March 2023, the Company has conducted all activities under the strict oversight and regular inspections of the relevant government authorities. Additionally, the Company has implemented annual health check-ups for employees and residents within a 5-kilometer radius of the mine. Blood and urine test results, analyzed by the laboratory at Ramathibodi Hospital, have shown no abnormalities or evidence of contamination impacting the environment or daily life.

• The Company also submitted an operational audit report for the Chatree Gold Mine, conducted by Behre Dolbear International Limited, a global expert in mine inspections and evaluations with over 100 years of experience. The DPIM selected this entity to perform a thorough review the Company’s operations. The assessment concluded that the operations adhere to international standards, employ modern technology ensuring safety for both human life and the environment, and are comparable to leading mines worldwide. Furthermore, no leakage of heavy metals from the tailings storage facilities into nearby communities was detected.

• Mr. Cherdsak Utha-aroon, Lead General Manager of the Company, stated that the dispute in question originated several years ago. Over the past 2–3 years, both parties have actively worked to resolve the issues constructively. The Company has strictly followed to all directives and recommendations. Currently, the Company’s legal advisors and technical experts are thoroughly reviewing all aspects of the case, including the legal and technical elements referenced in the DPIM’s Order. Independent studies approved by the DPIM confirm that the Company’s tailings storage facilities are secure, with no leakage. Furthermore, the Company has consistently adhered to the guidelines and standards established by the DPIM and relevant regulatory bodies. Operations have been conducted safely, in compliance with international standards, without any adverse effects on the environment or public health. Employees, their families, and local communities have long recognized and supported the Company’s commitment to safety and environmental stewardship.

Forr more information, please contact Naru-orn Klaotien at 08-9522-6169
Corporate Communications, Akara Resources Public Company Limited