Posted on 09 October 2007

 

Source: Bangkok Post, October 9, 2007

Around 500 protesters rallied at the Natural Resources and Environment Ministry yesterday to protest against plans by the Sahaviriya Group to build a 500- billion-baht smelting plant in Prachuab Khiri Khan province.

The protest came even after Sahaviriya announced it would downsize the project to reflect concerns voiced by villagers.

The protest nearly turned violent after opponents confronted some 200 villagers from Bang Saphan, Prachuab Khiri Khan, who turned out in support of the project. They favoured the new jobs expected to be created in the area.

Around 60 policemen were deployed at the ministry to prevent any violence between the two groups. However, they later dispersed after meeting with Kasemsun Chinnavaso, the secretary-general of the Natural Resources and Environment Policy and Planning Office (Onep).

Hundreds of villagers from Prachuap Khiri Khan rally at the Natural Resources and Environment Ministry to protest against new irrigation projects by the Irrigation Department and Sahaviriya Steel's proposed iron smelter project. —CHANAT KATANYU Mr Kasemsun told smelter opponents that his agency, which is in charge of reviewing the environmental impact assessment (EIA) report and making recommendations to the NEB, had found some flaws in the project's EIA and already told the firm to revise it.

"We will exercise extra caution when considering the EIA once the firm resubmits it," Mr Kasemsun said.

Smelter opponents demanded the state agency reject the project's EIA report, saying it was unreliable and based on inaccurate information, according to the villagers. They also called on the government to investigate the private consultant firms hired by the steel giant to conduct the EIA report.

Under the environmental law, proposed construction projects will not be allowed to go ahead if the EIA and mitigation plans fail to get approval from the National Environment Board (NEB).

The protests began more than a year ago after environmentalists and social activists called for the venture to be scrapped due to fears of serious ecological impact in the area. Protesters also claimed that part of the project site encroached on public land.

The Sahaviriya Group (SGC) held a public hearing for the project on Friday, attracting about 250 villagers.

Pirote Mockdara, SGC's vice-president for special projects, said the company told villagers that it had agreed to eliminate 350 rai out of 1,500 rai planned from the project due to public concerns.

While the company insists that it has a proper legal title for all 1,500 rai originally proposed for phase one, it was willing to downsize the project to move forward, he said.

Under the original plan, the country's first upstream iron and steel smelting project would be built in five phases, each taking five years and with production capacity of five million tonnes per year per phase. The total project is estimated to be worth 500 billion baht, with a production capacity of 30 million tonnes per year once completed.

The new downsized plans for phase one will shift the project's location slightly to the north. SGC requested to withdraw its EIA submitted to Onep to reflect the modifications, and is expected to resubmit its proposals shortly.

"There is nothing wrong with the land, and we hold all of the title deeds legally. But we want to see our project moving forward instead of wasting times with this kind of issue," Mr Pirote said.

Company observers noted that the protesters seemed to be largely led by activists from a non-governmental organisation, with little participation by Bang Saphan villagers. SGC executives insist that they have been transparent about the project and were fully sensitive of the concerns of local villagers.
 

"We arranged over 20 public meetings, covering all relevant parties, including local schools, local businessmen, hotel and tourism business operators as well as farmers," one executive said.

 

"We have always received a good response. These protesters, who are led by the same activists, aren't even Bang Saphan villagers. For SGC, we will focus on the real villagers and try to live with them peacefully."

 

SGC, founded by Viriyaprapaikit family, has been active in the steel industry for decades. Its SET-listed affiliate Sahaviriya Steel Industries Plc has operated a hot-rolled steel complex in the area since 1990.

 

 

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