More public participation urged to solve potash woes

       The government is seeking to aid potash mining by increasing public participation to end a fierce dispute between investors and local residents.
       "We are doing this in the hope of reducing imports of fertiliser. Since potash is a main ingredient in making fertiliser, if its costs are lower this would help the farm sector too," said Suraphong Chiengtong, a deputy director-general of the Department of Primary Industries and Mines.
       A problem-solving committee for the Udon Thani potash mine, for which AsiaPacific Potash Corporation (APPC) holds the exploration concession, will meet next week to work out strategies to promote public participation.
       "The potash mine in Udon Thani has faced local opponents for a long time.To solve this we must listen more to local people's demands and share with them the benefits of the mine," said Mr Suraphong.
       The committee will soon meet with local residents to hear their views, he added.
       The project's opponents have shown positive signs that mutual agreement with investors could be reached, he said.
       The Udon Thani project was started in 1984 by a Canadian-Thai joint venture.But strong opposition from villagers led investors to retreat without making any progress.
       Italian-Thai Development, Thailand's largest construction company, now holds 90% of shares in APPC. Ital-Thai said earlier that it would sign a concession for mining with the government next year.
       Meanwhile, Asean Potash Mining, a joint venture between Asean governments and Thai investors, is likely to find a new investor soon, according to Mr Suraphong.
       The struggling company plans to operate a potash mine in Chaiyaphum and is seeking partners to raise capital. Founded in 1990, the company is 71% owned by Thai investors including TMB Bank,Bangchak Petroleum Plc and the Finance Ministry, which owns 22.08%. The remaining 29% stake is held by Asean members including Brunei, Indonesia, Malaysia, the Philippines and Singapore.
       As the Finance Ministry is a major shareholder, the Natural Resources and Environment Ministry is likely to approve the company's use of forest reserve land in Chaiyaphum for mining if investors promise high environmental protection.
       "Once this process is done officially,potential investors will jump in to solve the company's financial problem," Mr Suraphong said.
       New investors need to invest 1 billion baht and to have mining experience,marketing talent and high technology for potash mining, he said.
       The mineral is now trading at $700 per tonne. Thailand's annual consumption of potash is 500,000 tonnes, all of it imported. The country has potash deposits of up to 700 million tonnes, mainly in the northeastern region.
       Potash mining would require extra environmental and community health impact assessment reports under Section 67 of the 2007 Constitution. The exact guidelines for industries deemed harmful under Section 67 will be finalised soon.
       Meanwhile, the department is also promoting local production of dolomite,an important mineral that reduces soil acidity and raises agricultural yields.
       "Current dolomite factories are inefficient, though we have rich reserves.We have spent 2 million baht to improve some factories' facilities and are providing free consultancy to improve production,"said Mr Suraphong.