An Australian mining company is seeking an exploration licence for iron ore in Thailand, according to Deputy Prime Minister and Industry Minister Suwit Khunkitti.
Navakun Mining Co Ltd, a 100%- owned subsidiary of Oxiana Limited, a gold and copper mining company in Australia, has submitted a special prospecting licence application to explore iron ore in Rayong, Chon Buri, Chachoengsao and Chanthaburi provinces.
According to Pasavorn Boonyathada, regional manager of Oxiana Limited, the company is now operating gold and copper mines in Laos and also has an exploration project in Cambodia. The licence in Thailand will require approval from the Department of Primary Industries and Mines and the minister.
Peter Abert, executive general manager for Asia of Oxiana Limited, said the company would spend around US$2-5 million over two years if it was granted the licence.
''At this stage, we don't know if there is any iron ore in the exploration sites. However, if we find what we want, we will seek the mining licence,'' he said.
He added that if the exploration was a success, the ore would go to serve both domestic and export markets, especially China, which is importing a large amount of iron ore from Australia to serve its steel industry.
Mr Suwit believes Oxiana's exploration will help develop the steel industry in Thailand by attracting more steelmakers to invest in upstream steel smelters in the country.
Currently, steelmakers need to import raw materials, such as billet, scrap and slab from smelter plants overseas to make steel products in Thailand.
The new investment project has also proved that political tensions do not affect Thailand's investment climate.
''Some new investors may hold back their investment plans in face of the current political woes, but I don't think the existing ones view them as a big problem,'' he said. ''However, I think the oil crisis is the main concern to all investors, causing them to put on hold their investment plans.''
Source: Bangkok Post
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