Bangkok: Thailand's military regime has ordered the shutdown of the country's gold mining and exploration industry, including the Australian-owned Chatree mine 280 kilometres north of Bangkok.
Prime Minister Prayuth Chan-ocha cited a public outcry over health and environmental issues for the shock decision.
The Chatree mine operated by Akara Resources and Public Company, a subsidiary of the Australian operator Kingsgate, has been the target of environmental protests over alleged contamination of nearby villagers. 
The company strongly denies the claims that forced a 44-day suspension of mining early last year.
Government agency tests revealed that about 100 people living around the mine have high levels of toxic substances in their bodies, but scientific investigations failed to link the levels to the mine.
Kingsgate's chief executive officer Greg Foulis said that, after 15 years creating jobs and making a substantial contribution to the Thai economy, the government's announcement came as a surprise.
He said the decision was at odds with the results of a comprehensive report by independent experts that clearly concluded that the Chatree operations caused no harm to the health of the nearby community or the environment.
"Not only has nobody died, nobody has even been sick or shown any symptoms of anything and yet we still go on with this giant farce," Kingsgate chairman Ross Smyth-Kirk said in   April.
The open cut operation is Thailand's largest gold mine and employs almost 1000 workers.
The regime has ordered all mining to cease by the end of the year and mining areas to be rehabilitated. It has also ordered government agencies to stop issuing and renewing gold mining and exploration licences.
Mr Smyth-Kirk last year announced plans for the company to expand its gold mining operations in south-east Asia.
Twelve companies have submitted applications for gold exploration in Thailand, covering 177 land plots in 10 provinces.
The company's lease for Chatree was due to run to 2028.
Mr Foulis said the company had yet to receive any formal communication from the government about its decision.
"In the interim, we are seeking legal advice as to our position and will continue to keep our stakeholders, including our 1000 employees and contractors informed, as and when further information becomes available," he said.
Akara Resources said in a statement that it had repeatedly proven the mine had caused no harm to the environment and the company had followed Thai mining laws and operated under the supervision of the Primary Industries and Mines Department.
The Chatree mine's smelting licence was due to expire on Friday but the regime announced it would be extended until the end of the year to give the company and its workers time to prepare for the shutdown.
Industry Minister Atchaka Sibunruang told reporters that four government ministries had met to consider the findings of a panel that had been set up to look into complaints about the health and environmental impacts of gold mining.
"They are still unable to confirm that the gold mine causes heavy-metal and cyanide contamination in the environment and people's sickness but in the interests of people around the gold mine and resolving the conflict, we made a decision to close the mine by the end of the year," she said.
"The ministries agree that gold mining is not suitable for the country at the moment."
Thanyarat Sinthornthammathat, a leader of an environmental protest group, said she was grateful the government had chosen to stand by Thai people rather than foreign businesses.
Protest groups have been targeting the mine for several years. One protester recently held a sign saying "Get Out Australian Capitalists", while a small girl clutched a handwritten sign showing her alleged levels of arsenic, manganese and cyanide.
Thailand's National Anti-Corruption Commission announced last year that it was investigating an allegation that Kingsgate bribed Thai state officials to obtain a gold mining concession.
The Sydney-based company strongly denied the claim and said it would co-operate fully with the investigation.
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