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The Assessment of New Mining Projects in Thailand from the Faculty of Georesources and Materials Engineering of the RWTH Aachen

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The Assessment of New Mining Projects in Thailand from the Faculty of Georesources and Materials Engineering of the RWTH Aachen The Assessment of New Mining Projects in Thailand From the Faculty of Georesources and Materials Engineering of the RWTH Aachen University Submitted by Kridtaya Sakamornsnguan - Master of Sciences from Bangkok, Thailand in respect of the academic degree of Doctor of Natural Sciences approved thesis Advisors: apl. Prof. Dr. rer. pol. Jürgen Kretschmann Univ.-Prof. Dr.-Ing. Dipl.-Wirt.Ing. Per Nicolai Martens Univ.-Prof. Dr.-Ing. Helmut Mischo Date of the oral examination: 21.07.2017 This thesis is available in electronic format on the university library’s website ii Abstract Mining is an anthropogenic activity that creates both positive and negative impacts on society and the environment. Governmental authorities play an important role in managing mining activities throughout a project's life cycle. The concession granting process is a common mechanism applied at the early stage of every mining project to regulate and balance the positive and negative results. Inefficient decision-making in this process can lead to short- and long-term problems with extensive negative impacts. Thus, governments need to evaluate and ensure that a new mining project is worth developing before approving it. This study develops an assessment framework that will provide information for the Thai government for a better decision-making performance in relation to the development of new mining projects. The development of this assessment framework is based on Buddhist principles, which are the foundation of Thai values and national policies. It will help identify and overcome the weaknesses of the current assessment approaches which are driven by an emphasis on self- interest and the influence of reductionism within the concept of sustainable development. The assessment framework considers the necessity of mining projects and the negative impacts of these projects, each of which is determined by a set of key risks and anticipated impacts of the proposed projects on the main stakeholders arranged in a hierarchy. The project’s worthiness is presented as a development priority. The case of underground potash mining in Bamnet Narong, Thailand is used as an example for the application of the new assessment framework. The assessment results confirm the applicability of the framework and provide information that can support decision-making during the approval process. They can also be used by the Thai authorities as well as by investors in order to manage the risks and impacts of projects at later stages. iii iv Abstract Bergbau ist eine anthropogene Aktivität, die sowohl positive wie auch negative Auswirkungen auf die Gesellschaft und die Umwelt haben kann. Staatliche Stellen spielen eine wichtige Rolle bei der Verwaltung von Bergbauaktivitäten während der gesamten Laufzeit eines Projektes. Die Vergabe von Abbaurechten spielt in der frühen Phase jedes Bergbauprojekts eine entscheidende Rolle, um die positiven und negativen Auswirkungen zu bewerten. Ineffiziente Entscheidungsprozesse können kurz- und langfristigen Problemen verursachen, da negativen Auswirkungen unterschätzt werden. Infolgedessen sollten staatliche Stellen vor der Genehmigung abschließend bewerten und sicherstellen, dass neue Bergbauprojekt nachhaltig und risikoarm durchgeführt werden können. Die vorliegende Studie hat einen Bewertungsrahmen entwickelt der dazu beitragen wird, Informationen für die thailändische Regierung zur Verfügung zu stellen um ihre Entscheidung im Zusammenhang mit der Entwicklung und Vergabe neuer Bergbauprojekte zu verbessern. Dieser Bewertungsrahmen basiert auf den buddhistischen Prinzipien, die die Grundwerte der thailändischen Gesellschaft und der nationalen Politik darstellen. Mit dieser Principien werden die Schwachstellen der bisherigen Bewertungsansätze identifiziert und überarbeitet, die durch eine Betonung des Eigeninteresses und den Einfluss des Reduktionismus im nachhaltigen Entwicklungskonzept zugrunde gelegt werden sind. Der Bewertungsrahmen legt die Notwendigkeit sowie die negativen Auswirkungen eines Bergbauprojekts zur Grunde und wägt diese gegen die wesentlichen Risiken und die erwarteten Auswirkungen der vorgeschlagenen Projekte auf die wichtigsten Stakeholder ab. Die Würdigkeit des Projekts wird als eine Entwicklungspriorität gezeigt. Diese Fallstudie nutzt ein Kali-Untertagebergwerk in Bamnet Narong, Thailand als Beispiel für die Anwendung des vordefinierten Bewertungsrahmens. Die Auswertungen bestätigen die Anwendbarkeit des Bewertungsrahmens und geben Auskunft, über die Verbesserung der Entscheidungsprozess bei der Vergabe von Abbaurechten. Die Ergebnisse können in Zukunft von den thailändischen Regierungsbehörden sowie von Investoren zur Bewältigung der Risiken und Auswirkungen von Bergbauprojekten in späteren Phasen verwendet werden. v vi Acknowledgement Throughout the four and a half years of my doctoral study in Germany, I have received support and encouragement from many people, to whom I would like to express my sincere gratitude. First and foremost, I would like to thank my supervisor Professor Dr. rer. pol. Jürgen Kretschmann for his continuous support of my research, study, and my well-being in Germany. I appreciate all his efforts, patience, motivation, ideas, and plenty of opportunities I obtained for internships, networking, teaching, and even writing a book. He was a ‘Doktorvater’ in the actual sense of the work. I would also like to express my gratitude to Professor Dr.-Ing. Dipl.-Wirt. Ing. Per Nicolai Martens for his support of my PhD work and life as well as the opportunities to participate in different academic events. My sincere thanks also go to the rest of my dissertation committee: Professor Dr.-Ing. Helmut Mischo, Professor Dr. rer. nat. Georg Roth, and Assistant Professor Dr. Thitisak Boonpramote, for their insightful comments which allowed me to improve the quality of my research and my knowledge. My thanks also go to Associate Professor Dr. Pinyo Meechumna, who recommended me to come to Germany and introduced me to Professor Kretschmann. I would have ended up in a different path if I had not followed his advice to come to Germany. Many thanks also go to my superiors at the Department of Primary Industries and Mines and staffs of ASEAN Potash Mining PLC, who helped me a lot with the data for the case study; the professors at THGA and Chulalongkorn University, who provided support and opportunities to attend lectures and events; BBK I and THGA colleagues, who were very friendly and helped me in every occasion from the beginning to the end; executives and colleagues at NRW Bergbehoerde, Ercosplan, and K+S, who gave me precious opportunities to do internships and share useful information; Dr. Thi Hoai Nga Nguyen, who gave me a helping hand in the first-time registration as well as advice and support; the Kretschmann-Von der Beck and the Plien families for their warm Christmas parties; national and international friends who made my life in Germany more fun and colorful; and my family who keeps supporting and encouraging me through both fun and hard time. Last but not least, I would like to thank the Royal Thai Government and the Department of Primary Industries and Mines for providing me with the financial support and the opportunity to study abroad. Without this support, it would not have been possible for me to conduct this research. vii viii Content Page Abstract (English) .............................................................................................................. iii Abstract (German) ............................................................................................................... v Acknowledgement ............................................................................................................ vii Content ............................................................................................................................... ix List of Figures .................................................................................................................. xiii List of Tables ..................................................................................................................... xv 1 Introduction ................................................................................................................. 1 1.1 Background .............................................................................................................. 1 1.2 Problem description ................................................................................................. 2 1.3 Dissertation arrangement ......................................................................................... 5 2 Thailand and its mining administration system....................................................... 7 2.1 Country profile ......................................................................................................... 7 2.1.1 Geography ........................................................................................................ 7 2.1.2 Economics and social structure ........................................................................ 8 2.1.3 Political structure and public administration ................................................... 8 2.1.4 Culture and national values .............................................................................. 9 2.1.5 Economic and social development strategies in the past decades ................... 9 2.2 Overview of Thailand’s mining industry ............................................................... 10 2.2.1
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