Australian gold miner Kingsgate Consolidated Ltd has requested a suspension of the company’s trading on the ASX, pending clarification of Thai media reports alleging the Thai government has suspended applications for gold exploration and production licences.

This presents a worrying development for the company, whose share price has fallen over 40 per cent in the last 20 months. Kingsgate and its Thai subsidiary Akara Mining Ltd currently have new lease applications pending in the Thai provinces of Phitchit and Phetchabun.

Media reports have said Thailand’s state-run advisory body, the National Economic and Social Development Board has been asked to review the impact on the environment and local communities prior to deciding whether consideration of new leases will be resumed.

Kingsgate has expressed confusion at the reports, in light of the fact that the current nine mining lease applications to expand the company’s Chatree Mine have an Environmental Impact Statement that was approved in April this year, following an 18 month review period.

In a statement earlier this week Kingsgate chairman Ross Smyth-Kirk said the company has received overwhelming community support, consistently delivering social and economic benefits to both the local communities and the Kingdom of Thailand.

Australian Ambassador to Thailand William Paterson has lodged a formal and urgent request to the Thai Government, requesting immediate advice on the media reports.

Kingsgate declined to comment further, as Chairman Ross Smyth-Kirk and CEO and Managing Director Gavin Thomas attempt to clarify the situation in Thailand.