The ASEAN Potash Mining Project is a project from cooperation among ASEAN member countries. Signed the ASEAN Industrial Project Agreement for a large-scale industrial collaboration. The foundation of this project is the ASEAN Industrial Project (AIP). The Foreign Minister of ASEAN 6 countries signed a Basic Agreement on the ASEAN Industrial Project and in accordance with the ASEAN's countries
Currently, the ASEAN member countries that have received assistance in establishing the ASEAN Industrial Project are ASEAN Urea Fertilizer Project, Indonesia, ASEAN Urea Fertilizer Project, Malaysia and ASEAN Copper Smelting Project, Philippines.
The Cabinet has resolved to approved to designate the Potash Mining Project in Bamnet Narong District, Chaiyaphum Province, Thailand, as an ASEAN industrial project. Its objective is to produce approximately 1 million tons of potash fertilizer annually over a period of 30 years.
The Cabinet has resolved to establish a Thai shareholder organization to participate in the establishment of "ASEAN Potash Mining Company Limited," as a legal entity to undertake the project. The company will operate within the project area. The area has been designated as an exploration, study, experimental, and mineral research zone under the Mineral Act B.E. 2510, Section 6, Subsection 3, on behalf of the Department of Mineral Resources, until the company receives a concession within the project area.
The Ministry of Industry, on behalf of the Government of Thailand, has signed a Joint Venture Agreement with the governments and representatives of five ASEAN countries, Malaysia, Indonesia, the Philippines, Singapore, and Brunei Darussalam.
(1) ASEAN Potash Holding Company Limited (APHC), a company formed by Thai shareholders to participate as a shareholder in ASEAN Potash Mining Company Limited.
(2) ASEAN Potash Mining Company Limited (APMC) was established to carry out the ASEAN Potash Mining Project. The shareholders include Thai stakeholders holding 71% of shares (represented by APHC: Ministry of Finance holding 20% and private sector holding 51%), five ASEAN member countries collectively hold 29% of shares (with Indonesia holding 13%, Malaysia 13%, Philippines 1%, Singapore 1%, and Brunei Darussalam 1%).
The Cabinet has approved an investment of approximately 544 million US dollars for the project, comprising approximately 163.2 million US dollars in equity capital and approximately 380.8 million US dollars in loans. The Ministry of Industry has been authorized to negotiate with the Ministry of Finance to secure funding, including equity capital where the government participates with 20%, and loans as part of the investment expenditure plan, to be obtained from the Japanese government's Overseas Economic Cooperation Fund (OECF)
The Japanese government has informed about the allocation of loans for the potash mining project through the Overseas Economic Cooperation Fund (OECF), specifically for the mining operations and various facilities related to the potash fertilizer plant. Assistance with loan financing will be facilitated through the Export-Import Bank of Japan (EXIM BANK). However, the government cannot provide loan guarantees for the project.
Subsequently, the Ministry of Finance has communicated through the Ministry of Industry to seek private sector strategic investors to participate in the project management. This initiative aims to transform the project into a future multinational corporation.
The company completed the construction of an inclined shaft to access the mineral level at a depth of 180 meters from the surface in the year 2541 (1998). This was for the purpose of conducting underground trial mining in 3 mineral chambers, aimed at installing equipment to assess the mine's strength. From then until now, the results have been satisfactory, confirming that the underground trial mining, following the company's design guidelines, is stable, robust, and environmentally safe. The mining method used is the Room and Pillar method, recognized worldwide for its high safety standards in underground mining.
The company has transformed into a public company under the name Asian Potash Mining Public Company Limited and has submitted an underground mining concession request to the Basic Industry and Mining Department, Chaiyaphum Provincial Industry Office, with the application registration number 1/2547, for the project area of 9,708 rai in the localities of Ban Tan, Ban Phet, and Hua Talae sub-districts, Bamnet Narong District, Chaiyaphum Province. However, since the area for the requested concession is one that the Department of Mineral Resources has declared as a site for exploration, testing, study, and research related to minerals, under Section 6 bis of the Mineral Act B.E. 2510, the concession process cannot proceed as planned
The Minister of Natural Resources and Environment, therefore, opened the area of 2,500 rai for the Company. However, the area size was not sufficient for the project implementation and loans to run the project could not be requested as it was considered not worth investment.
The Company looked for new joint investors to develop the project. Later on, in the 3/2009 Extraordinary General Meeting of Shareholders on November 27, 2009, a new joint investor namely Thai-German Mining Co., Ltd. was approved.
The Company and Thai-German Mining Co., Ltd. signed the Share Subscription Agreement to increase the capital, accounting for 47.56%. Thai-German Mining Co., Ltd. gradually paid for 280,000 shares. The SSA Share Subscription Agreement) stipulates conditions where TGM and other shareholders grant rights and voting power to the Ministry of Finance in the event of capital increase. This to ensures that the Ministry of Finance maintains a shareholding of not less than 20 percent.
The Ministry of Finance has completed the conversion of debt into equity, totaling 1,547,400 shares at a par value of 100 Baht per share.
The Minister of Natural Resources and Environment has declared the opening of the area under Section 6 bis, paragraph two, covering approximately 26 square kilometers. Therefore, the company has proceeded with the following actions:
The Office of Natural Resources and Environmental Policy and Planning (ONEP) has approved the Environmental Impact Assessment (EIA) report for the project.
In the Extraordinary General Meeting of Shareholders No. 2/2011, held on June 28, 2011, a resolution was passed to reduce the registered capital from 2,226.66 million Baht to 1,270.76 million Baht and to approve an increase in the registered capital to 2,805.80 million Baht. Additionally, 15,982,000 newly issued shares were allocated at a price of 100 Baht per share to two restricted entities: the Ministry of Finance and Thai-German Mining Co., Ltd.
The company has been granted a mining concession (No. 31708/16118, Type 5G) from the Ministry of Industry for underground mining in Ban Tan and Hua Tale sub-districts, Bamnet Narong district, Chaiyaphum province.
The company changed its name from **ASEAN Potash Mining Public Company Limited** to **ASEAN Potash Chaiyaphum Public Company Limited** (ASEAN Potash Chaiyaphum Public Company Limited or "APOT").
The company held a meeting to appoint the management committee for the **Fund for Supporting Public Participation in the Underground Mining Inspection** of ASEAN Potash Mining Public Company Limited.
The company held a public consultation meeting (the 1st) to gather opinions from the public and stakeholders regarding the scope and approach to the environmental impact assessment of the **Combined Heat and Power Plant Project** for the ASEAN Potash Mining Project.
The company held a public consultation meeting (the 2nd) to gather opinions from the public and stakeholders on the draft report and measures for mitigating and correcting environmental impacts of the **Combined Heat and Power Plant Project** for the ASEAN Potash Mining Project.
The company announced a bidding process to select contractors for two project packages:
1) EPCC Package 1: EPCC Package 1: Underground Mining
2) EPCC Package 2: Processing Plant & Facilities (construction of a beneficiation plant, utilities, and various surface structures)
The company has received payment for the additional shares from Thai-German Mining Co., Ltd., which has gradually paid for the allotted additional shares, totaling 13,344,400 shares, amounting to a total of 1,067.53 million baht.
The company has selected a contractor for the Turnkey Delivery of APOT Project Package 2: Surface Processing and Facilities, with a project value of approximately 33,372 million baht. The company has also issued a Limited Notice to Proceed to the contractor for Early Work, including engineering work for the beneficiation plant, as well as site preparation and surveying, with a work value of approximately 711 million baht.
The company has appointed a financial advisor to assist in securing funding and loans for the project development. Additionally, the company has appointed experts in marketing, technical, and legal fields to support the financial institutions in reviewing the comprehensive feasibility study of the project.
The Ministry of Finance is considering the involvement of state-owned enterprises to hold shares on behalf of the Thai government in the ASEAN Potash (Thailand) Project.
The company is in the process of seeking potential partners who have the financial capability and clear funding sources to invest continuously in the company until the completion of the project.
At the Annual General Meeting of Shareholders for 2023, the shareholders acknowledged the plan to increase the registered capital for the development of the project and approved the reduction and increase of the registered capital. The company now has a registered capital of 20,805,797,300 baht and paid-up capital of 3,256,727,300 baht.
The Board of Directors has approved the plan for utilizing the funds raised from the capital increase, with an allocation of 450 million baht.