Akara Resources Plc's gold mine in Phichit province may be closed longer after the company's appeal against the government's suspension order was turned down.
The government has asked the company to provide more information and plans to hold a week-long public hearing for villagers living near the mine, signalling that the mining operation might face further suspension.
"Akara sent its appeal to us on Jan 22, asking for a resumption of its mining operation," said Surapong Chiangthong, director-general of the Industry Ministry's Primary Industries and Mines Department.
"But the appeal was turned down, as the ministry wants more information before deciding."
The department issued a 30-day suspension order on the mine operation on Jan 13 after blood tests on local residents showed higher-than-normal levels of toxic heavy metals.
But Akara reiterated that the toxic metals found in the blood tests were caused not by the mining operation but by the villagers' use of insecticides on their own farmland.
Mr Surapong said the government had asked Akara to provide more information about how it conducted blood tests of its own that showed villagers were not affected by its mining operation.
"We cannot allow Akara to run any operation now for fear it would circumvent the law," he said.
The government's suspension order will expire on Feb 13.
However, Mr Surapong said the government planned to hold a public hearing for residents near the mine in Phichit province to say whether they had been adversely affected.
The public hearing was expected to take several days or even weeks, which means the company could face a longer-than-expected suspension, he added.
Akara estimates an initial losses of 600 million baht from the 30-day suspension.