Hope on the horizon for Kingsgate

26th November 2020 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – New hope has emerged for the relationship between gold miner Kingsgate Consolidated and the Thai government, after the company’s subsidiary was granted 44 special mineral prospecting licences.

Kingsgate on Thursday reported that the special mineral prospecting licences would have a period of five years, until October 2025, and were subject to all relevant Thai mining laws, including obtaining permission from landholders and providing environmental bonding to cover any reclamation works.

The prospecting licences do not cover mining activities.

Kingsgate told shareholders that the approvals of the special mineral prospecting licences was a small but positive step by the Thai government to pursue a negotiated settlement between the two parties.

Kingsgate was forced to place its Chatree gold miner on care and maintenance at the start of 2017, after the Thai government in 2016 announced that all gold mining in the country would cease.

Since then, the company has been focused on ways to remedy the situation.

Earlier this year, Kingsgate was granted permission to sell the gold and silver sludge at its Chatree gold mine to a Thai refinery.

The company on Thursday said that some 4 400 oz of gold and silver sludge had been refined and sold so far, with funds of some A$12-million having been received.