- Kingsgate Consolidated (KCN) is getting closer to reopening the Chatree gold mine after a five-year hiatus
- The mine, which was Thailand’s first and largest gold mine was shut down by the Thai government and sparked a lengthy legal battle with Kingsgate
- However, the parties are in negotiations with the arbitral tribunal ready to issue operating licences and permit applications in the next few months
- By December, Kingsgate expects to commence mobilisation for the refurbishment of the mine
- Shares in Kingsgate Consolidated were down 15.7 per cent to $1.67 at 10:46 am AEDT
Kingsgate Consolidated’s (KCN) Chatree gold mine is set to re-open after being shut down by the Thailand government in 2016.
The Chatree mine, which was Thailand’s first and largest gold mine, was shut down after the Thai government said all gold mining in the country was to end by December 31, 2016.
But after a lengthy legal battle between Kingsgate and the government, the company has finally been given the green light to re-open the mine.
Kingsgate announced in September it was in the advanced stages of negotiations with the Royal Thai Government and an arbitral tribunal was ready to issue all operating licences and permit applications required to restart the mine.
By December, the materials stock expects to commence mobilisation for the refurbishment of the mine with the activation of a metallurgical processing licence and the renewal of mining leases.
At this stage, KCN is looking to refurbish the second plant, Chatree North, to access the low-grade stockpiled ore for processing which has around 6.6 million tonnes of ore and contains around 73,000 ounces of gold and 780,000 ounces of silver.
The company expects this could generate sufficient cashflow to fund other works such as the development of the Quartz lease, the cutback of the A Pit, refurbishment of plant one and implementing an expanded exploration program.
While Kingsgate is pleased with the progress it has made on reviving the Chatree gold mine, the company and the Thai government have jointly requested the arbitral tribunal to further hold off on awarding the permits until January 31, 2022. This will allow the parties enough time to draft items as part of the negotiated legal settlement.
Shares in Kingsgate Consolidated were down 15.7 per cent to $1.67 at 10:46 am AEDT.