Thailand’s former name was Siam which means gold in Sanskrit. In earlier times
Thailand’s traditional name was Suvarnabhumi meaning ‘Golden Land’.
The Chinese in earlier times called Thailand ‘Jin Lin’ meaning ‘Peninsula of Gold’ and gold is often referred to in important Thai Buddhist literature; Buddha is described as having a ‘skin of gold’ and gold is often used in Buddha statues and other religious objects and artifacts.
Gold represents more than just a precious metal used for coins and jewellry or wealth accumulation to the Thai people; gold is intrinsic to Thai history
| Capital: | Bangkok | Head of State: |
| Surface area: | 513,000 km² | HM King Bhumiphon Adulyadej |
| Official Language: | Thai | |
| Religious belief: | Buddhism | Head of Government: |
| Population: | 63.9 million (2010) | Prime Minister HE Ms Yingluck Shinawatra |
| Exchange rate: | 1 US$ = 32.3 baht |
Recent Economic Indicators | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 |
| GDP (US$bn – current prices): | 207.1 | 247.0 | 272.6 | 263.7 | 297.9 | 339.4 |
| GDP per capita (US$): | 3,296 | 3,918 | 4,300 | 4,151 | 4,992 | 5,281 |
| Real GDP growth (% change yoy): | 5.1 | 5.0 | 2.6 | 2.4 | 7.8 | 3.5 |
| Current account balance (US$m): | 2,315 | 15,682 | 2,157 | 21,866 | 14,784 | 16,141 |
| Current account balance (% GDP): | 1.1 | 6.3 | 0.8 | 8.3 | 4.6 | 4.8 |
| Inflation (% change yoy): | 4.6 | 2.2 | 5.5 | -0.8 | 3.3 | 4.0 |
Thailan’s Principal Trading Partners
| Principal export destinations, 20010: | Principal import sources, 2010: | |||||
| 1. | China | 11.0% | 1. | Japan | 20.8% | |
| 2. | Japan | 10.5% | 2. | China | 13.3% | |
| 3. | USA | 10.4% | 3. | USA | 5.9% | |
Political Overview
Recent political developments in Thailand
Following a military coup in in September 2006, Thailand returned to a democratically elected government when Prime Minister Samak Sundaravej’s Cabinet was sworn-in on 6 February 2008 following national elections held on 23 December 2007. Mr Somchai Wongsawat was subsequently elected Prime Minister by the Thai Parliament when Mr Samak resigned in September 2008 due to a conflict of interest issue.
On 2 December 2008 the Thai Constitutional Court declared that the ruling People’s Power Party be dissolved and its 37 executive members be banned from politics for five years. In making its decision the Court also ruled that Mr Somchai would no longer hold his position of Prime Minister.
Mr Abhisit Vejjajiva, leader of Thailand’s Democratic Party, was nominated Prime Minister by the Thai Parliament on 15 December 2008. Mr Abhisit’s Cabinet was sworn-in by His Majesty King Bhumiphon Adulyadej on 22 December 2008.
On July 3, 2011, Thailand’s Pheu Thai party won a majority 265 of 500 seats in Thailand’s general election. With the inclusion of several minor parties, Pheu Thai controls 300 seats in parliament. On August 5, Ms. Yingluck Shinawatra became Thailand’s 28th prime minister and its first female prime minister. Yingluck is the sister of former Prime Minister Thaksin Shinawatra who was ousted in a September 2006 coup.
The Monachy
The institution of the Monarchy is deeply respected throughout the Kingdom and the Thai people revere and love His Majesty King Bhumiphon Adulyadej. The King is the world’s longest reigning monarch and celebrated the 65th anniversary of his accession on 9 June 2011.
Source: Australian Government, Department of Foreign Affairs and Trade, Canberra
(a) All recent data subject to revision; (b) IMF/EIU forecasts
EXPLORATION & MINING – TITLES, ROYALTIES & BOI SPONSORSHIP
Mineral prospecting licences are generally issued for a maximum period of five (5) years. An annual work program is agreed with the Department of Primary Industry and Mines (DPIM) before a Prospecting Licence is issued.
Mining leases are generally issued for a maximum period of 25 years. Surface leases are limited to a maximum area of 0.48km² per lease but leases for underground operations, where mining is conducted more than 100 metres below ground surface can be granted up to a maximum area of 10km² per lease. Appropriate environmental impact statements must be tendered and local community support for any development is essential.
Prima facie, foreign ownership in any mining venture in Thailand (including associated land ownership) is limited to 49% under Section 2 of the Foreign Business Act. If a mining venture is sponsored by the Thai Board of Investment (BOI), subject to the proposed venture having a developed value of at least 500 million baht (AUD16 million), then the 49% equity limitation can be waived for a period of between 8 and 13 years permitting 100% foreign ownership.
Under BOI sponsorship, generous tax and import duty relief is available as well as a waiver on land tenure ownership providing the land is integral to the venture.
A sliding rate of Government royalty applies to gold production commencing at 5%. The maximum royalty on gold production is 10% based on a gold price of US$1500/oz and over; the silver royalty is a statutory 10% of production. Royalties on other metals and minerals vary but are generally lower than the gold and silver royalty (up to 5% generally).
Thai Mineral Wealth
Thailand is endowed with an abundance of minerals. In much earlier times the Kingdom’s mineral wealth was derived largely from tin (hardrock mining and dredging operations), zinc (mining and smelting), tungsten and antimony (mining and processing), gypsum and small-scale gold mining operations.
In 2000 the first modern goldmine (Chatree Gold Mine) was established in Thailand by ASX listed Kingsgate Consolidated. Chatree, named in honour of the company geologist who first recognised gold mineralisation in the area, produced its one millionth ounce of gold in 2010.
Despite Thailand’s endowment of mineral wealth, the country remains a substantial importer of a variety of precious and base metals including gold and copper.