Pan Asia Metals welcomes Thailand’s new mining and downstream investment policy

Battery and critical metals explorer and developer Pan Asia Metals has welcomed the Thai Cabinet’s approval of a new policy to improve investment promotion for the exploration, mining and the downstream minerals processing industries in Thailand.

The ‘Policy on Mining and Downstream Industry’ essentially puts minerals supply chain security front and centre of Thailand’s industrial growth initiatives, encouraging mineral exploration, mining and/or mineral dressing, and smelting or metallurgy.

“[Thailand is] recognising that minerals exploration, mining and processing are high risk activities requiring time, skills, substantial investment and a stable policy environment, and that there is a need to encourage these activities through investment promotion and incentives,” Pan Asia Metals (ASX:PAM) MD Paul Lock said.

PAM has prime position in Southeast Asia

PAM is the only lithium explorer in Southeast Asia, with the Reung Kiet Lithium Project, comprising the Reung Kiet Prospect (mineral resource of 10.4MT at 0.44% Li2O) where infill and extensional drilling is underway.

“PAM is uniquely positioned in Thailand and the region, being the only battery and critical metals explorer of substance and having a long and successful track record in the country, as well as a deep knowledge of Thailand’s and the region’s geology and opportunities,” Lock said.

“As a company we are very excited by the PMO’s announcement and the potential outcomes and advantages the ‘Policy on Mining and Downstream Industry’ provides PAM.”

The company also holds the Bang I Tum Prospect which has a drilling supported exploration target of 8.0-14.0MT at 0.5% – 0.8% Li2O, along with the Kata Thong Geothermal Lithium and Hard Rock Lithium Project, which is under application, and several lithium-tin-tungsten, and kaolin application areas currently under negotiation.

Thailand has big EV goals

Thailand is the largest automotive manufacturer in Southeast Asia and the fourth largest in Asia, with 21 auto assemblers, including Toyota, Nissan, Mitsubishi, Honda, Mercedes and BMW, and 12 motorbike assemblers.

The country wants to retain that leadership position through its Electric Vehicle Policy – which aims to have 30% EV production by 2030 by providing income tax exemptions of up to 13 years and import tariff exemptions on machinery and raw materials used in manufacturing.

PAM’s mineral resource will form part of a Scoping Study that plans to consider initial production of up to 10,000tpa of LCE and the company is positioning itself to be involved in cathode active material manufacturing – which would come under the EV policy.