At the Asean summit in Kuala Lumpur on Sunday, the Thai government signed an MoU with the US government to collaborate on the development of rare-earth materials.
The Thai government and the mining industry welcome this MoU as a catalyst for a mining renaissance and for positioning Thailand in the rare-earth supply chain.
Thailand might not have a large reserve of rare-earth minerals, but it is already listed as a major producer that imports them to produce electric components.
The Department of Primary Industries and Mines (DPIM), however, estimates that there are massive deposits of rare-earth materials in the southern region’s seas and mountains.
These untapped materials are believed to be in tin mine deposits in the region, starting from Prachuap Khiri Khan to Phatthalung provinces. Needless to say, the MoU will rekindle the need for the DPIM and industry to explore these reserves.
But not everyone has welcomed this MoU. Civic groups, environmentalists, and some politicians view it with concern. Their apprehension is rooted in past problems with mining.
Long before Thailand became a hub for industries such as automotive manufacturing, tourism, and healthcare, it was a global source of tin. In the late 19th and early 20th centuries, tin mining along the Andaman Sea coast generated wealth for the country. Phuket was indeed a tin-mining town before the industry withered in the late 1980s, when the price of tin hit rock bottom.
A significant change also occurred in 1986 due to a protest against a project to build a factory in Phuket to process tantalum, a precious, rare-earth metal.
Since then, the former poor tin-mining island has become a global tourist destination, with tourism also replacing the extractive mining industry in Krabi and Phangnga provinces.
Local communities in the northeastern and Central regions have raised concerns about environmental issues arising from mining, including the Karen community in Kanchanaburi province. Despite lead mining facilities having been closed for over two decades, mining operators and the government left toxic sediments in the Klity River, exposing local villagers to lead poisoning.
At a gold mine in the Central region, local villagers a decade ago accused it of toxic heavy-metal contamination, prompting the previous Prayut Chan-o-cha government to issue an executive decree temporarily closing the mine.
Meanwhile, this year, residents in Chiang Rai province have suffered from water pollution caused by toxic releases from rare-earth mines in Myanmar that pollute a transboundary river.
Make no mistake: Thailand should explore new business opportunities, but the government must win the trust of villagers and society that it will do better at protecting people and nature, rather than promoting industry at any cost, as it has done.
Before joining the bandwagon of rare earths, the government needs to conduct a strategic analysis to weigh between the benefits of mining exploration and tourism in the southern region. The government needs to ensure that mineral exploration complies with environmental protection rules.
Perhaps the first thing the government can do to win public trust is address the water pollution from rare-earth mines in Myanmar that flows into Thailand.