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Mining Licensing Under the Minerals Act B.E. 2560 (2017)
Thailand's Minerals Act B.E. 2560 (2017) consolidated mineral resource regulation under a single statute. Mining licences are issued by the Department of Primary Industries and Mines. Foreign-controlled operations face additional FBA and environmental impact assessment obligations.
TL;DR
The Minerals Act B.E. 2560 (2017) (พระราชบัญญัติแร่) replaced and consolidated the earlier Mineral Act of 1967. Licensing is administered by the Department of Primary Industries and Mines (กรมอุตสาหกรรมพื้นฐานและการเหมืองแร่) under the Ministry of Industry. Mining concessions are categorised by activity (prospecting, exploration, mining). Environmental Impact Assessment (EIA) and community-consultation requirements have been strengthened. Foreign-controlled mining operations engage Foreign Business Act B.E. 2542 (1999) Schedule 2 / 3 considerations and BOI in some cases.
Licence Types
| Stage | Licence |
|---|---|
| Prospecting | Atorpor licence (right to explore mineral potential) |
| Exploration | Pransap licence (more detailed exploration) |
| Mining | Prathanbat (Type 1 — small / individual), Type 2 (medium), Type 3 (large / industrial) |
| Special mineral category | Tin, tungsten, fluorite, others — specific requirements |
EIA and Community Consultation
- EIA required for medium and large operations; submitted to Office of Natural Resources and Environmental Policy and Planning (ONEP).
- Public hearing process — community consultation on mining concession applications.
- Community Health Impact Assessment (CHIA) for projects with significant health implications.
- Reclamation and rehabilitation bond posted with the Department.
Restricted Minerals
Certain minerals (radioactive substances, others designated by Ministerial Regulation) require additional licensing through the Office of Atoms for Peace or other specialised regulators.
Foreign Investment
| Aspect | Note |
|---|---|
| FBA Schedule 2 | Certain mineral activities require Cabinet approval for foreign ownership |
| FBA Schedule 3 | Other mining services typically require Foreign Business Licence |
| BOI promotion | Certain processed-mineral / value-added activities qualify |
Common Mistakes
Avoid these traps:
- Beginning ground-truthing without prospecting licence.
- Skipping community consultation.
- Inadequate reclamation planning.
- FBA structure that fails on Cabinet approval requirement.
FAQs
1. How long is a mining concession?Varies by mineral and licence type; typically 5-25 years, renewable subject to compliance.
2. Can foreigners hold mining concessions?Subject to FBA and Cabinet approval for certain categories. BOI-promoted activities may permit foreign majority.
3. What about gold panning?Small-scale artisanal mining has separate, simpler regimes; localised regulation by provincial authorities.
4. Are royalty obligations significant?
Yes — royalty rates vary by mineral and are set by Ministerial Regulation under the Minerals Act. Payments are made to the Department of Primary Industries and Mines; major operations have additional revenue-sharing arrangements with local administrative organisations.
5. How do environmental obligations end?
On concession completion, the operator must complete reclamation and rehabilitation per the approved plan; the Department releases the bond after verification.
Related Reading
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