CHAPTER 2 LITERATURE REVIEW
2.13 Delphi Technique
2.1 Situations and Policies of Mine Development in Thailand
2.1.1 Situations of Mines in Thailand
In terms of the prospecting licenses issued by the Department of Primary Industries and Mines, it was found that before the enforcement of Minerals Act B.E.
2560 (2017) (as per December 5, 2017), prospecting licenses in operation totalled 96 plots, divided into special prospecting licenses 8 9 plots, and exclusive prospecting licenses 7 plots. Most special prospecting licenses consisted of the following: copper
35 plots, followed by potash and rock salt 31 plots, iron 12 plots, and tungsten 4 plots.
Most exclusive prospecting licenses were located in the north with 7 plots. The surveyed minerals included kaolin, coal, Diatomaceous earth, feldspar, and iron.
Moreover, there was 1 plot of exclusive prospecting license in the northeast. The surveyed mineral was barite. The application for prospecting licenses before the enforcement of Minerals Act B.E. 2 5 6 0 (2017) revealed that the application for exclusive prospecting licenses totalled 741 plots. Most were situated in the north with 505 plots, followed by the central plains 151 plots, the south 54 plots, and the northeast 32 plots. Special prospecting licenses totalled 500 plots. Most were situated in the north with 280 plots, followed by the central plains 106 plots, the northeast 87 plots, and the south 2 7 plots. As for the sources of industrial rock for construction, according to the resolutions of the Cabinet of Ministers, the Notification of Ministry of Industry, and the Notification of Department of Primary Industries and Mines before the enforcement of the Minerals Act B.E. 2560 (2017) and after passing the consideration of the Committee determining sources of industrial rocks ( industry for construction) of Ministry of Industry but the Notification could not be issued before the enforcement of the Minerals Act B.E. 2 5 6 0 (2017), it was found that there were 440 sources of industrial rocks nationwide covering the areas of 1 8 0 ,9 5 0 rai. The rock sources were located in the south with 137 plots, the north 138 plots, the central plains 96 plots, and the northeast 69 plots.
1,076 mining concessions were operating nationwide and divided by region in 2019 as in Table 2.1 and Figure 2.1 It was found that the highest share of concessions in Thailand was in the central plains or 3 4%, followed by 17% in the north, and 1 6%
in the south.
Table 2.1 Number of Mining Concessions Operating Nationwide in 2019
Ranking Regions Operating Concessions (plots)
1 Central Plains 370
2 North 179
3 Northeast 142
4 South 171
5 East 89
6 West 125
Total 1,076
Source: Office of Natural Resources and Environmental Policy and Planning (2021).
Note: as per June 2019.
Figure 2.1 Chart of the Number of Mining Concessions Operating Nationwide in 2019 Central plains
North Northeast South East West
At present, there are approximately 1,800 mines with expired concessions out of over 3,000 mines in the past under the supervision of the Department of Primary Industries and Mines. At present, there are approximately 1,200 areas with operating concessions around the country as in Table 2.2 and Figure 2.2 and the areas with expired concessions between 2015-2018 totalled 31,970 rai, 2 ngan, 47 sq. wah (Department of Primary Industries and Mines, 2019, as cited in Dusit Chantrakan, 2019).
Table 2.2 Number of Concessions and Plots with Occupied Areas Classified by Region Thailand in 2019
Regions Concessions Areas
Number Plots Rai Ngan Sq. Wah
North 100 208 42,066 2 78
Northeast 134 180 41,208 3 20
Central Plains 208 422 79,186 0 7
East 57 79 8,246 0 32
West 92 110 17,718 1 42
South 152 210 26,494 1 8
Total nationwide 743 1209 214,920 0 87
Source: Department of Primary Industries and Mines, (2019, as cited in Dusit Chantrakan, 2019).
Remark: 1 Hectare = 6.25 Rai 1 Rai = 1,600 m2 1 Ngan = 400 m2 1 Wah2 = 4 m2
Figure 2.2 The Number of Concessions Nationwide in 2019
Source: Department of Primary Industries and Mines (2019, as cited in Dusit Chantrakan, 2019).
Table 2.3 Areas of Expired Concessions between 2015-2018
Years Concessions (number)
Holders Plots
2015 11 22
2016 31 25
2017 22 52
2018 16 34
Total 80 133
Source: Department of Primary Industries and Mines (2019, as cited in Dusit Chantrakan, 2019).
Note: Total areas of Expirired 31,970 rai, 2Ngan 47 sq.wah
Central plains, 422 plots, 35%
South, 210 plots, North, 208 plots, 17% 17%
Northeast, 180 plots, 15%
West, 110 plots, 9%
East, 79 plots, 7%
Number of concessions nationwide (Plots, %)
Based on Table 2.3 there were over 1,200 plots of operating concessions but expired concessions tended to increase since 2015. It showed the increasingly inevitable trend of mined areas.
The problems of mined areas were numerous. For example, entrepreneurs lacked knowledge and understanding in operation and they did not want to spend money in rehabilitation or were not interested to do so. Therefore, the landscape posed problems, impacting nature, the environment, and the eco-system in the future as follows:
1) Impact on environment, soil, surface water, and underground water.
If the mined areas were contaminated with heavy metals or toxic chemicals, there might be hazardous substances that made it impossible to utilize the areas. If surface water and underground water were contaminated on a wide scale, rehabilitation would be difficult and a huge budget would be required for the rehabilitation.
2) Impact on the ecosystem. The contamination of chemicals or toxic metals might be integrated into some types of mining which threatened living creatures in the ecosystem. Hazardous substances would contaminate the food chain and accumulate in living creatures, impacting humans at the highest level of the food chain.
3) Impact on unattractive landscape especially mined areas at steep slopes or potential danger to people or animals through falling into the mines. In case the mined areas were deep into the earth, it would impact co-habitation in communities.
If the mined areas were abandoned, it would cause conflict between entrepreneurs and communities and could lead to opposition to the operation in the particular areas.
2.1.2 Thailand’s 20-Year National Strategy
The Constitution of the Kingdom of Thailand B.E. 2560 (2017) determined the 20-year National Strategy (2017-2036) in 6 dimensions consisting of the following:
2.1.2.1 Security Aspect - Manage the country environment to ensure security, safety, and harmony in all levels and dimensions
2.1.2.2 Establishing the Competitiveness Aspect -Emphasize the upgrading potential in various dimensions together with expanding opportunity for Thailand in World Forum
2.1.2.3 Developing and Enhancing Human Resource Potential Aspect - Strengthen Thai people in the future for readiness both physical and mental including intelligence and necessary skill for the twenty-first century, with communication skills in English and the third language, as well as morality
2.1.2.4 Providing Opportunity and Social Equality- Establish fairness and decrease inequality in all dimensions, distribute economic and social growth centre, and increase opportunity for all sectors to contribute to the national development in all dimensions
2.1.2.5 Establishing Growth based on the environmental-friendly quality of life – Taking into account sustainable natural resources and environment, change the behaviour of people to be environment–friendly through various measures which emphasized sustainable outcome.
2.1.2.6 Adjusting of Equilibrium and Developing of Public Sector Management Aspect through the change in the public sector by adhering to the principles “Public Sector of the People for the People and Common Interest”
According to the national strategy, the Ministry of Industry has formulated 3 strategies in connection with the mission of the Department of Primary Industries and Mines as follows:
2.1.2.7 Strategy to promote the potential of the robust industrial sector with high growth through research, enhancement on research and development, application of science, technology, and innovation to increase productivity and develop standards to the industrial sector through the entire value chain with higher competitiveness
2.1.2.8 Strategy to promote and develop environmental-friendly industry, as well as promote the development of the sustainable industrial sector
2.1.2.9 Strategy to develop the competency of the organization to provide quality services, develop system and ability of personnel in providing service to entrepreneurs and the public with efficiency and good governance, and to handle future changes
Based on the national strategy and Ministry of Industry’s strategy in connection with the mission of the Department of Primary Industries and Mines, the policy was formulated to develop the industrial sector for progress and prosperity, focusing on
environmental-friendly operation, CSR, as well as promotion of the development of the sustainable industrial sector.
The 20-Year Mineral Management Strategy (2017-2036) and Mineral Management Master Plan (2017-2021) were formulated under the 20-Year National Strategy, 12th National Economic and Social Development Plan (2017-2021), Environmental Quality Management Plan (2017-2021), Minerals Act B.E. 2560 (2017) and National Reform Agenda to formulate the management guideline of minerals in the country with security, prosperity, and sustainability for 20 years ( 2017-2036) and the first 5 years (2017-2021), focusing on reform of mineral management system and in line with the objectives of Minerals Act B.E. 2560 (2017), stipulating the government’s mineral management for the country’s and the people’s sustainable and maximum benefit, with economic and social balance, and impact on environmental quality and people’s health, fair allocation of mineral profits for stakeholders, the general public, residents, and networks participating in mineral management. In the past, the country’s mineral management faced many problems. For example, management of the impact from mining, environment, ways of life, and health of people and community in the vicinity of the exploited land for mineral resources, unfair allocation of profit from mineral resources causing widespread social conflict, lack of transparency in license issuance of government agencies, and problems of conflict derived from the concerns of people’s sector relevant to negative mining. These problems caused obstacles in utilizing the country’s mineral resources. The main reasons for these problems included the overall policy of utilizing the country’s mineral resources that lacked clarity and integration, the process of license issuance for exploitation of mineral resources was complicated and involved many agencies, as well as people’s sector and society still lacked knowledge and understanding of activities and impact from mining. Therefore, the public sector must accelerate the solutions to problems by formulating the clear policy of the country’s overall mineral management covering the participatory process of various sectors, reforming the mechanism of mineral management in all dimensions to reduce redundancies and discretions of competent officials, as well as accelerate the promotion to create knowledge, understanding, and disseminate facts relevant to the civil society to ensure sufficient knowledge and information for decision-making, as well as promotion of various sectors to participate in the country’s mineral management
through clear and efficient processes. These activities have been incorporated in the Mineral Management Master Plan 2017-2021 which is the plan in the first 5 years of the 20-Year Mineral Management Strategy ( 2017-2036) . The Plan focused on the reform of mechanism for mineral management and laid down the foundation of the country’s clear overall policy of mineral management both in terms of areas and types of minerals to ensure confidence in investment and industrial sector and solve the problem of social conflict. For 10 years, the policy would focus on the country’s move towards a secure raw material base in response to the country’s development in investment and industry. For 15 years, the policy would focus on the manufacturing sector relevant to the use of the country’s mineral resources in the development towards the environmental-friendly and green industry. The 20-Year target (2017-2032) was the policy of the country’s mineral management that the mineral industries and continuous industries contributed to the national development towards security, prosperity, and sustainability according to the Sufficiency Economy Philosophy for maximum benefit under the overall balance of economic, social, environmental dimensions, and public health.
2.2 Environmental Funds in Thailand
The researcher collected information on environmental funds established in Thailand to search for the model and administration of the funds as follows:
2.2.1 Community Development Fund around Power Plant
Under the supervision of the country’s energy, the resolution of the meeting of National Energy Policy Council (NEPC) on June 4, 2007, approved the guideline and the processes to set up community development fund around the area of the power plant which the Cabinet resolution approved on June 19, 2007, by the resolution of NEPC.
Ministry of Energy stipulated the establishment of a community development fund around power plants to seek capital for the development of people’s quality of life and environment in the community around the power plant that might be affected by the construction of the power plant or power generation. The entrepreneur applying for
permission for power generation would be charged. The detail of the fund was as follows:
2.2.1.1 Guideline and Processes of Establishment of Fund
For the power plant obliging to establish the fund, it was determined that in the case of power purchase agreement to enter the system of Electricity Generating Authority of Thailand of over 6 megawatts, the power plant must set up a fund to develop the quality of life of people and environment around the power plant. In case there were a lot of power plants in the same area or the same industrial estate, one fund must be set up. The rates of the contribution of capital to the fund for new power plant ( Power plant that fed electricity to the EGAT system since January 1, 2011) were as follows:
1) During construction, since the date of the signing of the power purchase agreement to the Commercial Operation Date (COD), it was stipulated that the entrepreneur must contribute capital to the fund according to the installed power generation capacity at 50,000 baht/megawatt/year or not less than 500,000 baht/year.
The payment must be made on the date of the signing of the power purchase agreement and the following years on January 1 every year.
2) During power generation, from the date of COD until the date of the expiry of the power plant’s concession, it was stipulated that the power plant operator must contribute capital to the fund every month according to the unit of electricity sold to the EGAT system in the rates classified according to the sources of fuel as in Table 2.4
Table 2.4 Rates of Contribution of Capital to Community Development Fund around Power Plant during Power Generation
Fuels Satang/unit
Natural gas 1.0
Fuel oil, diesel 1.5
Coal, lignite 2.0
Renewable energy -
Wind and solar 0.0
Biomass, waste and residue, household waste 1.0
Hydro 2.0
2.2.2 Fund Administration Committee
The multilateral Fund Administration Committee was responsible for fund administration with the following composition:
1) Representatives from the people’s sector constitute more than half of all committee members. The members were nominated from people representatives with a focus on the process of public participation around the power plant
2) Representatives from the public sector appointed by the Governor 3) Representatives from power plant
4) Experts
The administration of power development fund for the power plant project with a generation capacity of over 100 kilowatts – hour/year required the establishment of a Community Development Committee around power plant with no fewer than 15 committee members but not exceeding 35 members. Representatives at the village level must organize village meetings to select representatives of all villages in announced areas. As for representatives at the subdistrict level, the elected representatives at the village level would serve as representatives to give their vision. They must be between 25 and 70 years old, with education not lower than compulsory education, and with a residency of not less than 1 year in the house registration in the announced area. The expert members must have the following qualifications: they must be aged between 35- 70 years old, their name in the house registration in the province where the power plant
was situated, and with knowledge, expertise, and experience in social affairs, public health, energy, environment, community economy, education, finance, or communication. However, Fund Administration Committee must not be composed of the member who was MP or assistant to MP, senator, political official or holder of political position, member of the local council, chief executive of the local authority, or political advisor. The Committee would serve the term of 4 years and not more than 2 consecutive terms.
2.2.3 Disbursement of the Fund
The disbursement of the fund must be to develop people’s quality of life and the environment of the community around the power plant for sustainable development.
The community could use the fund for the following purposes:
1) Occupational development
2) Support of education, religion, culture, tradition, sports, and music 3) Support of public health and environment
4) Development of quality of life
5) Initial remedy of damage from the impact of power plant 6) Development of renewable energy
7) Central community planning
8) Formulation of the community development plan in the area around the power plant
9) Support of expenses or compensation in the operation of Fund Administration Committee
2.2.4 Determination of Areas around Power Plant
The areas around the power plant were divided into inner and outer areas. The inner areas included the administration at the subdistrict level with a radius of 5 kilometres from the boundary of the power plant or the industrial estate where the power plant was situated. The outer areas were beyond the inner areas. Initially, it would be under the joint consideration between the governor, district chief, representative of a power plant, and representative of the Ministry of Energy. Once the Fund Administration Committee was established, the Committee could consider
improvement as appropriate. The determination of the area around the power plant in the case of hydropower plant took into account those affected by the hydropower plant both above and below the dam.
The regulations of the Energy Regulatory Commission on Power Development Fund for Rehabilitation of Localities affected by Power Plant Operation B.E. 2553 (2010) determined the use of the capital funds for the community affected by activities of the power plants. The area was announced according to the production capacity to use the capital for local development or rehabilitation by taking into account the radius from the centre of the power plant, divided into 3 areas namely
1) Radius of 5 kilometres for the power plant generating power over 5,000 million kilowatts-hour a year
2) Radius of 3 kilometres for the power plant generating power over 100 million kilowatts-hour a year but not exceeding 5,000 million kilowatts-hour a year 3) Radius of 1 kilometre for the power plant generating power not exceeding 100 million kilowatts-hour a year
2.2.5 Fund Inspection
Ministry of Energy would appoint a subcommittee to monitor and evaluate the performance of the operation of the Community Development Fund Around Power Plant under the National Energy Policy Council to monitor and evaluate the operation of the fund while providing the opportunity for the community’s participation in the inspection of the operation of the Fund Administration Committee. Moreover, the
“ Guideline to set up Community Development Fund Around Power Plant” stipulated the preparation of accounting, financial report, and annual report to the subcommittee to monitor and evaluate the performance of the operation of Community Development Fund Around Power Plant, and then disseminate the information to the community living around the power plant and the general public.
The content of the establishment of the Community Development Fund Around Power Plan according to the Ministry of Energy with the approval of the National Energy Policy Council and the Cabinet could be summarized as follows:
1) Guideline with Requirements of the Sizes and Types of Fuel of Power Plant
The requirement was specifically for official power transactions from 6 megawatts upwards and no enforcement for the power plant using wind and solar energy. The requirement did not enforce a power plant with official power transmission before January 1, 2001. Moreover, in the case of many power plants in the same area or the same industrial estate, only 1 fund would be set up.
2) Fund Administration Committee
Under the administration of the Community Development Fund Around Power Plant during operation, there would be a Multilateral Fund Administration Committee between 15-35 members with the representatives of the people’s sector constituting more than half of the total Committee members. The recruitment focused on the participation process through village meetings for selection at the village level.
The representatives at the subdistrict level were recruited from the elected representatives at the village level. Moreover, their age was determined between 25-70 years old. The representatives from the public sector were appointed by the governor in the province where the power plant was located. There were also representatives from the power plant and experts. Importantly, the Committee must not consist of those holding political positions or even political advisors. The term of the Committee was 4 years but not exceeding 2 consecutive terms.
3) Disbursement of the Fund
The capital from community development fund around power plant was determined to be used for the development of quality of life of people and environment given sustainable development, as well as the development of occupation, support of education, religion, music, sports, public health, and mitigation of initial damage from the impact of the power plant, and support of costs or compensation in the operation of the Fund Administration Committee.
4) Determination of the Area around Power Plant
The regulations of the energy regulatory commission on power development fund divided the areas for rehabilitation from the centre of the power plant into 3 areas of the radius between 1 - 5 km as the criteria for power generation. Fund Administration Committee might make consideration as appropriate taking into account the impact from the power plant.
5) Fund Inspection