Bangkok (23 January 2025) — Bangkok (23 January 2025) – Akara Resources Public Company Limited, in collaboration with Precious Metal Refining Company Limited (PMR) and Ausiris Company Limited, is emphasizing the critical role of Thailand’s gold industry amid rising global demand. At a recent industry update, Mr. Cherdsak Utha-aroon, General Manager of Sustainability at Akara, alongside M.L. Paramaporn Devakula, General Manager of PMR, and Mr. Boonlert Siripatvanich, CEO of Ausiris, discussed the industry’s current status and the need for continued government support.
Mr. Utha-aroon detailed Akara’s significant economic contributions following its resumption of operations. Since reopening, the Company has invested over 2.6 billion baht to overhaul its metallurgical plants and mining facilities, completing these improvements in May 2024. As a result, Akara has reached full production capacity, producing approximately 50,000 ounces of gold and over 530,000 ounces of silver in 2024. The Company has set a 2025 production target of 80,000–90,000 ounces of gold, with plans to increase output to 95,000–120,000 ounces within the next two to three years.
Ms. Sivanart Sornrach, Akara’s Regulatory Affairs Manager, stated that within just 22 months, from March 2023 to January 2025, Akara has paid over 1 billion baht in royalties. Of this, 40% of the mining royalties were allocated as state revenue, while 50% was distributed to local communities in the areas where the company operates. This distribution is divided as follows: 20% to the provincial administrative organization where the mining concession is located, 20% to the subdistrict administrative organization of the concession area, 10% to other subdistricts within the province, and the remaining 10% to subdistrict administrative organizations nationwide.
This distribution strengthens local organizations, enhancing their ability to serve their communities by creating jobs and supporting projects that improve the quality of life for local residents. Additionally, Akara has paid a 5% special contribution, based on the royalties, to the Department of Primary Industries and Mines for mineral research and the rehabilitation of mining sites. This amount does not include the funds Akara must allocate to four essential programs supporting village development, mining rehabilitation, health surveillance, and risk insurance. The company is required to contribute 21% of the royalties to these funds, with a minimum of 65 million baht per year. However, Akara has already allocated approximately 207 million baht, far exceeding the required amount.
M.L. Paramaporn noted that PMR, which refines Akara’s gold to 99.99% purity, currently operates at just 30% of its total capacity, demonstrating readiness to accommodate increased production. The refined gold is then processed by Ausiris, where skilled goldsmiths enhance its value by incorporating unique Thai craftsmanship.
Mr. Boonlert Siripatvanich, Chief Executive Officer of Ausiris Co., Ltd., further explained that the gold extracted by PMR is refined and crafted by Ausiris’ skilled goldsmiths, who incorporate a distinctive Thai identity to enhance the value of Thai gold products. Guided by the vision of “Thai Gold for Thai People,” Ausiris strives to deliver “Thai Value” through gold made by Thai people, for Thai people, and shared with the world. This vision is central to the collaboration between the three companies, which aims to integrate the entire Thai gold production process.
What benefits does Thailand gain from gold mining?
M.L. Paramaporn and Mr. Siripatvanich underscored the broader benefits of Thailand’s gold industry. Mr. Siripatvanich emphasized that gold is a key raw material for the jewelry sector, a major contributor to the national economy. From January to November 2023, Thailand’s gem and jewelry exports were valued at approximately USD 16.92 billion, with gold accounting for nearly half of this figure.Mr. Utha-aroon pointed out that the mining and extractive industries often have a negative public image due to concerns about their environmental impact. However, through strict regulatory oversight and effective measures to manage and mitigate environmental effects, including new technologies like cyanide control and efficient waste storage, mining operations can be conducted responsibly. Innovations such as reduced water usage (saving up to 307,000 cubic meters per month) and environmentally friendly blasting techniques help minimize the impact on the environment and surrounding communities.
Despite the common perception of mining as environmentally harmful, Mr. Utha-aroon stressed that Akara adheres to stringent environmental regulations and employs advanced technologies to minimize impact. These include cyanide control systems, zero-discharge tailings storage facilities, and most recently, the introduction of the ‘isotainer’ in November. The isotainer is a sealed transport capsule used in gold refining processes, and it helps:
- Reduce the risk of chemical exposure for employees,
- Effectively control the use of cyanide,
- Prevent waste by allowing the used isotainers to be returned to the manufacturer.
Additionally, Akara has implemented water-saving techniques, conserving over 307,000 cubic meters of water per month.
Mr. Utha-aroon emphasized, “The royalties that Akara has paid since reopening its operations in less than two years amount to billions of baht, not including employment figures from Akara directly, contractors, or partner companies like PMR and Ausiris. Therefore, if the government supports the midstream and downstream industries, I believe the benefits will multiply. At the same time, there are still opportunities for additional gold mining projects, but the government needs clear policies that support the sector through a strategy based on sustainable resource management and development plans tailored to the potential of each area.”
In addition to economic benefits, the mining industry provides invaluable social advantages. Akara and its partners have created employment for more than 1,000 people in the community, with the aim of having 90% of them be local residents. This initiative helps reduce migration issues and strengthens family structures, enabling the local workforce to stay close to home, keep families together, and access employment opportunities.
Akara also prioritizes the community’s overall well-being. Last year, the Company established an ‘Agricultural Clinic’ to promote safe farming practices among local farmers, encouraging better yields and helping boost the local economy and residents’ quality of life. Moreover, Akara is focused on creating long-term opportunities for community self-sufficiency.
To ensure the safety and well-being of nearby residents, Akara runs an annual ‘Health Checkup Program for Local Communities’ under the concept of ‘Safe Mining, Concern for People.’ This initiative has been conducted each year to monitor the health of individuals living within a 5-kilometer radius of the mine, including residents from 28 villages across 3 districts, totaling approximately 700 individuals. The checkups, provided free of charge at local health promotion hospitals, offer residents convenient access to health services. This initiative helps the local community stay informed about their health, enabling them to address any health concerns promptly. The health data collected also serves as valuable information for local public health agencies, further supporting the community. As a result, this comprehensive approach has earned strong support from local residents.
What is the trend of gold prices and the mining industry?
Mr. Siripatvanich explained that last year, gold prices saw a significant rise, reaching a high of $2,790 per ounce at the end of October. He believes that there may be some price consolidation in the short term, as some investors might sell to take profits. Additionally, the initial phase after the U.S. leadership transition and Trump’s trade policies leading to a stronger dollar, remains a negative factor for gold prices. However, the long-term trend for gold remains upward due to concerns over both domestic and global political and economic instability, geopolitical tensions, and the growing influence of the BRICS nations aiming to reduce reliance on the U.S. dollar. The “fear of missing out” (FOMO) among investors further contributes to a buying spree, which drives demand for gold as a safe-haven asset. All of these factors will likely help sustain gold prices at relatively high levels.
Mr. Utha-aroon added that, in addition to its use in jewelry, gold is also a crucial component in electronic devices. For example, gold is part of smartphones, which have become almost like a vital organ for many people. The demand for gold in technology is continuously increasing. Furthermore, the growing trend of alternative energy use is driving an increased demand for precious metals, as they are essential components in batteries and solar panels. Therefore, gold and other precious metals remain critical raw materials that are in high demand worldwide.
Further Cooperation Plans Between Akara, PMR, and Ausiris
Mr. Siripatvanich emphasized the vision of “Thai Gold for Thai People” and the advancement of “Thai Value” through Thai gold—by Thai people, for Thai people—on the global stage. The group plans to engage with relevant agencies to promote Thai gold and silver products under Free Trade Agreements (FTA) criteria, aiming to secure benefits such as tax reductions on imports using Thai-extracted and processed gold and silver. This strategy is designed to create a competitive edge for Thai businesses in foreign markets and aligns with the government’s economic policy to strengthen free trade agreements with various countries, attracting foreign investment into Thailand.
M.L. Paramaporn explained that many people still misunderstand the importance of the mining industry, often unaware that the raw materials for everyday products come from mining. From mobile phones to cars, batteries, and construction materials like roads and buildings, minerals are essential in products found all around us. He hopes the government will help highlight this “behind-the-scenes” industry. Mr. Utha-aroonconcluded by emphasizing that the cooperation between the three companies connects the entire gold production chain, from upstream to downstream, reducing reliance on imported gold. This collaboration aims to drive the development of the economy and society, positioning Thailand as a new center for gold industry development with global standards in Southeast Asia.
