Akara Resources Plc, whose concession to operate the Chatree gold mine in Phichit province is due to expire by the end of this year, says it will seek a one-month extension as the company believes there is more gold in the claim.
Chief financial officer Siroj Prasertphon said Akara needed to clarify its statement about the figures in the health assessment of the villagers living near its mine. The cabinet handed down a cessation order on May 10 to stop all mining operations after the government received complaints from villagers and non-governmental organisations located near the mine that their health was adversely affected by the mining.
"Thai law allows us to ask for an extension of up to one month. We will do it by sending an official request to the Primary Industries and Mines Department, which we hope will be approved," said Mr Siroj.
"We believe there is more ore left underground that needs to be mined."
Akara holds seven licences to continue mining through 2028.
The company's exploration information estimated up to 40 million tonnes of golden ore underground. It has an average mining capacity of 6.2 million tonnes a year, he said.
Akara estimates ceasing its mining business in Phichit would mean losses of 39 billion baht. The cessation order also raised the concern of its creditor as Akara put up its mining buildings, land and other assets as collateral for a loan.
Mr Siroj said the company is about to evaluate its operations and results earnings for its annual report and is expected to have higher losses than last year when it had 2 billion baht in losses.
"We hope if we have a chance to clarify and elaborate on all the information, facts and figures about the villagers' health assessment to the government we could have an opportunity to continue operations," he said.
Ross Smyth-Kirk, president of Sydney-based Kingsgate, the parent company of Akara, has requested a meeting with the Thai prime minister to present the company's information clarification in hopes of getting a concession extension.
In another development, Mr Siroj said Akara and its parent, Kingsgate, have not responded to the offer from Singapore-based Northern Gulf Petroleum International Ltd to buy 50.1% of Kingsgate.
The oil company offered to buy the stake at only 4.2 Australian cents a share, well below the price of 41 cents at the time the shares were suspended.
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