Thailand's fertiliser industry
Ironing out differences
with locals, the bottleneck
By Jon Fernquest 
ASEAN Potash Mining was formed as a company in 1990 to mine for potash, an essential ingredient in fertiliser.
New potash mines inside Thailand could reduce Thailand's dependence on imported Potash (Read article).
Recently there has been talk of Thai government financial aid to the company (Read article).
The impact of potash mines on the local environment and people who live near the mines remains the major issue.
This has been the major obstacle to getting mines operational and finally making a profit.
Asean Potash Mining Co (APMC) - a company
that runs an underground Potash mine in "Bamnet Narong District,
Chaiyaphum Province in the northeastern Thailand. The concession
contains significant high-grade potash, a resource essential for
fertilizer due to its high potassium content." (Source: Team
Consulting Group)
potash - a potassium chemical used in glass, soap and fertiliser (See Wikipedia)
fertiliser - food for plants, chemicals or natural materials such as cow manure (waste) put on plants to make them grow more successfully (See Wikipedia)
ironing out differences - eliminating disagreements, helping people reach an agreement
bottleneck, obstacle - something that prevents a project or activity from moving forward or progressing
an ingredient of Y - one of the things used to make Y
impact - the effect (usually negative)
getting mines operational - getting the mines working and producing potash
potash - a potassium chemical used in glass, soap and fertiliser (See Wikipedia)
fertiliser - food for plants, chemicals or natural materials such as cow manure (waste) put on plants to make them grow more successfully (See Wikipedia)
ironing out differences - eliminating disagreements, helping people reach an agreement
bottleneck, obstacle - something that prevents a project or activity from moving forward or progressing
an ingredient of Y - one of the things used to make Y
impact - the effect (usually negative)
getting mines operational - getting the mines working and producing potash
More public participation urged to solve potash woes
VICHAYA PITSUWAN7/09/2009
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.
woes - problems
public participation - people getting involved talking about issues and decisionmaking
a main ingredient of Y - one of the main things used to make Y
public participation - people getting involved talking about issues and decisionmaking
a main ingredient of Y - one of the main things used to make Y
A problem-solving committee for the Udon Thani potash mine, for which Asia-Pacific 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.
concession - government
permission to do a restricted business
exploration concession
- government permission to explore for a mineral (potash here) or other
resource
strategies to promote public participation - plans and ways to get more people involved in decisionmaking
faced local opponents - people living nearby who didnt' want the project
local people's demands - what people living nearby wanted
benefits - good things people get from the project
local residents - people who live in an area
positive signs - things that show that good things are happening or will happen
reach mutual agreement - agree
strategies to promote public participation - plans and ways to get more people involved in decisionmaking
faced local opponents - people living nearby who didnt' want the project
local people's demands - what people living nearby wanted
benefits - good things people get from the project
local residents - people who live in an area
positive signs - things that show that good things are happening or will happen
reach mutual agreement - agree
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.
joint venture - a
company owned and ran by other companies (two or more)
retreat - move away from, get less involved in
progress - gradual improvement towards a goal
retreat without making any progress - move away from, stop doing (so no improvement towards goal)
Italian-Thai Development - Thailand's largest construction company founded in 1954 (See website)
a concession for mining - government permission to do a mining business in a place
seeking partners to raise capital - want to find new investors to invest in the business
Founded in 1990 - began existence or operation in 1990
a major shareholder - one of the biggest owners of the company's stock
potential investors - people who might become investors
marketing talent - skilled at making products known in order to sell
retreat - move away from, get less involved in
progress - gradual improvement towards a goal
retreat without making any progress - move away from, stop doing (so no improvement towards goal)
Italian-Thai Development - Thailand's largest construction company founded in 1954 (See website)
a concession for mining - government permission to do a mining business in a place
seeking partners to raise capital - want to find new investors to invest in the business
Founded in 1990 - began existence or operation in 1990
a major shareholder - one of the biggest owners of the company's stock
potential investors - people who might become investors
marketing talent - skilled at making products known in order to sell
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.
potash deposits -
areas under the ground with large amounts of potash
impact - the effect (usually negative)
assessment - evaluation, considering and making a judgement about something
health impact assessment reports - a report that looks at possible negative health effects of something
dolomite - a chemical added to soil to reduce its acidity (See Wikipedia)
soil acidity - the Ph of the soil in an area which affects which plants can be grown (See Wikipedia)
raises agricultural yields - increases the crops produced
efficient - produces a lot from few resources
inefficient - not efficient (could produce more from the resources it has)
reserves - a supply available for future use
rich reserves - large quantities of reserves
improve facilities - make the buildings and equipment (for doign the activity) better
providing free consultancy to improve production - giving free advice on how to improve production
impact - the effect (usually negative)
assessment - evaluation, considering and making a judgement about something
health impact assessment reports - a report that looks at possible negative health effects of something
dolomite - a chemical added to soil to reduce its acidity (See Wikipedia)
soil acidity - the Ph of the soil in an area which affects which plants can be grown (See Wikipedia)
raises agricultural yields - increases the crops produced
efficient - produces a lot from few resources
inefficient - not efficient (could produce more from the resources it has)
reserves - a supply available for future use
rich reserves - large quantities of reserves
improve facilities - make the buildings and equipment (for doign the activity) better
providing free consultancy to improve production - giving free advice on how to improve production
(Source: More public participation urged to solve potash woes, VICHAYA PITSUWAN, 7/09/2009, link)
