Kingsgate commences legal action against Thailand

Company News

by David Chau

Australian gold miner Kingsgate Consolidated Ltd (ASX:KCN) is seeking compensation from the Thai government for its alleged breach of the Australia-Thailand Free Trade Agreement.

It is alleged that the Thai government forced the shutdown of Kingsgate’s Chatree gold mine on 31 December 2016, following a long-running dispute with locals, who claim the mine is poisoning them with heavy metals –including such as manganese, cyanide and arsenic. Kingsgate has denied these claims.

The Free Trade Agreement requires the parties to first engage in consultations, which can take up to 3 months. If they can’t reach a mutual outcome, then the next step will be international arbitration proceedings.

Kingsgate expects it will incur significant costs if the matter proceeds to arbitration, and notes the outcome of such proceedings would be uncertain.

Yesterday, Kingsgate shares closed 2.04% higher at 25 cents.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.