Gold price hits one-week high while Australian Kingsgate fights Thai mine closure
Eureka gold mine: Photo credit: James Marvin Phelps. Edited with TVScanline
The gold price has hit a one week high, with a weaker dollar and shaky US economic data.
Reuters reported that spot gold had risen 0.4% to $1257.73 per ounce at 06:58 GMT, while gold futures increased by 0.5% to $1,259.9
Some of the economic data concerned a metric of US manufacturing activity, which has suffered from a “decline in production and an inventory drawdown”.
In mining news Australian mining company Kingsgate Consolidated is seeking compensation from the Thai government, after they shut down a gold mine last year.
Negotiations have not been fruitful: ABC News quoted Kingsgate’s Chief Executive Officer, Greg Foulis, as saying “over the past 11 months, Kingsgate has made sustained, good faith efforts to engage with the Thai Government.” The Thai government, on the other hand, have not responded to the company’s requests for meetings
Foulis went on to say that “regrettably, Kingsgate has now reached a position where it believes that the only option to resolve the situation is to exercise its rights as a protected Australian investor under TAFTA (Thailand-Australia Free Trade Agreement),” as quoted in ABC News.
The Australian Trade Commission says TAFTA “[ensures] greater access to the Thai market for Australian products, enhances prospects for services trade and investment, improves the regulatory and investment environment and promotes increased business mobility.”
However one of the key descriptions is that is meant to “guarantee non-discriminatory treatment of Australian investments in Thailand,” implying full legislative rights to operate in the country.
The mine was closed at the end of last year over environmental concerns, notably around high levels of arsenic and manganese.
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