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Republic of the Union of MyanmarMinistry of Mines
Presented by
Kyaw ThetDirector
Department of Mines
Current Status of Mining Sector in Myanmar
September 9,2014
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Outline of Presentation
Brief Introduction to Mining Sector of Myanmar
Policies and Legislations
Investment Information of Mining Sector
PSC Ratio (Government Vs Investor)
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Lead,Zinc,Silver,Copper,Iron,Nickel, Cadmium, Cobalt, Tellurium,Mercury ,Aluminum,Arsenic,
GoldTinTungstenRare EarthTitaniumPlatinumMolybdenumRadio Active MineralHeavy Mineral
CoalLime stoneIndustrialMineralMagnesium Asbestos,Graphite,Glass Sand,Barite Manganese dioxideDecoration Stones
Union Minister
Dr. Myint Aung
Dept. Of MinesU Win Htein
(Director General)
DGSEDr. Ye Myint Swe(Director General)
ME 1U Kyaw San
(Managing Director)
ME 2U Than Daing
Acting Managing Director
ME 3U Htay Aung
Managing Director
MGEU Aung Nyunt
TheinManaging Director
MPEU Seing Lwin
Managing Director
MSMCEU Aung Myo
ThuGeneral Manager
Deputy Union Minister
U Than Tun Aung
GeologicalGeotechnicalAnalytical Laboratory
MineralPolicyformulation,RegulatorymeasuresRoyaltyCollection
Gems, Jade& Jewellery
Pearl SaltBy-productfromBrine
4© Photo: Soe Zeya Tun/Reuters
Introduction to Myanmar’s Mining Sector
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Any kind of raw ores are not allowed to export. Private entrepreneurs are permitted to sell their mineral products freely in
the local market and may also export them after mineral processing. Encouraging to set up mineral processing and refining plants in Myanmar in
partnership with local and foreign investors. Inviting to produce coal and build coal power plants but only for domestic
use, not allowed to export. Gemstone Mining are not allowed to Foreign investors but can invest in
Jewellery Making Industry or value added processing. Foreign investors can buy Jade and Gems in Emporium and also can be
exported.
Current Mineral Policy
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Ministry’s Mission To offer a balanced approach to
development of mineral sector and the environmental conservation.
To minimize the environmental damages and improved livelihood of the local who live near by mining area.
To minimize the mineral losses and be effective production by advanced technologies for mineral resources of state.
Permits Issued to Foreign InvestorsSr. Company Registered
Country Type of Mineral Type of Permit
1. Conerstone Resource (Myanmar) Ltd Australia Zinc Ore Large Scale Mining Permit
2. Myanmar Ponepipet Co.,Ltd Thailand Tin Concentrate Large Scale Mining Permit
3. Myanmar CNMC Nickel Co.,Ltd China Ferronickel Large Scale Mining Permit
4. Simco Song Da Joint Stock Co., Vietnam Marble Large Scale Mining Permit
5. Asia Pacific Mining Ltd. China Lead, Zinc , Copper, Gold Exploration Permit
6. Nobel Gold Limited Russia Gold and Associated Minerals Exploration Permit
7. North Mining Investment Co., Ltd. China Ferronickel Feasibility Study
8. De Rui Feng Investment Co., Ltd. China Tin-Tungsten Exploration Permit
9. Myanmar Yangtze Copper Co., Ltd. China Copper Large Scale Mining Permit
10. Myanmar Wanbao Copper Co., Ltd. China Copper Large Scale Mining Permit
11. Daewoo Precious Resources Co.Ltd Korea Copper, Gold Exploration Permit
12. GPS Joint Venture Co.,Ltd China Lead, ZincLarge Scale Mining Permit
13. Sichuan Chuandi( Myanmar) Mining Co.Ltd China Copper and associated MineralExploration and F . S
14. Royal Light Ron Ann Co., Ltd China IronExploration and F . S
15. Geo Pro Mining Sea Ltd Russia Antimony and Associated MineralsProspecting, Exploration & F.S
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Issued 2043 mining permits;
Exploration Permit - 504 Nos Small Scale Mining Permit - 1286 Nos Large Scale Mining Permit - 138 Nos Subsistence Mining Permit - 48 Nos Small Scale Prospecting - 67 Nos.
Mainly for Gold, Tin, Tungsten, Copper, Antimony, Iron, Coal , Industrial Minerals, Marbles, Granite , Magnesium dioxide and lime stone.
Mining Permits Issued to the Investors at the end of August 2014
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Policies and Legislation
© Photo: Bencito the Traveller
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State owned Economic
Enterprise Law
Foreign Investment Law
(2012)
Protection of Wild Life and Wild
Plants and Conservation of
Natural Areas Law (1994)
Myanmar Insurance
Law (1993)
Environmental Conservation
Law (2012)
Cultural Heritage Law (1998)
Myanmar Mining Law (1994)
Myanmar Gems Law (1995)
Myanmar Pearl Law (1998)
Mining Laws and Relating Laws
Myanmar Mine Safety Law
(Upcoming)
Myanmar Explosive Law
(Upcoming)
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Issued Public Notice
Environmental Conservation for Four Main RiversNotification No. 26/2012 (Dated on 28.3.2012)
Restriction had been done for Prospecting, Exploration and
Production for Metal and Gemstone Mining in the stream of
Ayeyarwady, Than Lwin, Chin Dwin and Sit Taung Rivers
within 10 meter from bank of rivers.
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Adopted Social Responsible Investment (SRI) Policy.Since 2nd July, 2014 became a candidate country of EITI.Trying to become a Compliant Country of EITI.
Update Investment Policy on Extractive Industries
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Investors of Mining Industries in Myanmar shall perform –
Environment Impact Assessment and Social Impact Assessment (ESIA)
Environmental Management Plan (EMP)
Occupational health and safety assessment system (OHSAS)
Funds Deposit to Designated Bank for Mine Closure, Mine Reclamation and CSR activities.
Update Investment Policy on Mining Industries
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Amending the existing Myanmar Mines Law and Regulations with the technical assistance of AusAids, World Bank and individual experts.
Targeting to create the Win-Win situation between the investor and the State.
Upcoming Myanmar Mining Law and Related Laws are almost ready for Foreign Investor.
Amending the Existing Laws and Related Regulations
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Myanmar Mines Law was drafted for amending with the advice of
experts, publics and technical assistance of AusAID, World Bank, the
comments from the investors of Myanmar’s Mining Industries and
experts who have internationally experiences.
Upcoming Mining Law and Related regulation concern the
environmental conservation, socio-economic of the locals and creating
the Win-Win situation between the investors and the State.
Amending the Existing Laws and Related Regulations
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Upcoming Myanmar Mines Law and Rules
The draft of the Myanmar Mines Law is already discussed at Pyi
Thu Hluttaw and Amyothar Hluttaw .And submitted to the Pyi
Daung Su Hluttaw for reviewing.
Also the Myanmar Mines Rules is drafted and almost finish to
enacted within the 90 days after the approval for the Myanmar
Mines Law from the Parliament.
The Myanmar Mines Law and Rules are ready for you soon.
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Investment Information
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Advantages of New Foreign Investment Law
Foreign Investment Law (FIL)
(2nd November, 2012)
Foreign Investment Rules
(31st January, 2013)
Efficiency Transparency EnvironmentBased on
Allowing
Employment of Expatriates
Land Lease
Guarantee
Incentives & Exemptions
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Forms of Investment
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2
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A Citizen or Concerned
Government Organization
The party which mention in the
contract.
100 % Foreign Owned
Joint Venture
Any system included in the
Mutually agreed contract
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Procedures of Foreign Investment in Mining Sector of Myanmar
Letter of Courtesy Call
Officials discuss on
mineral commodity
Site visit
Submit Proposal
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5. The Proposal must include …..
Company Registration in Myanmar Company Profiles and Other Relevant fact of company Recommendation and endorsement of the respective embassy List of Board of Directors Bank Statement Initial Work Program Map of Proposed Area with Respective Coordinate EIA, SIA , HIA Plan
6. After getting the approval of the Ministry of Mines and the completion of all the require recommendation documents, the proposal and the Agreement Draft will send to the Myanmar Investment Commission ( MIC ) for Investment permit.
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PSC Ratio (Government Vs Investor)
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PSC Ratio (Government Vs Investor)
State 30 (or) 35
Investor 70 (or) 65
Local Investor
PSC Ratio for the local investor could not negotiate because of low investment amount and using the ordinary mining technique.
ForeignInvestor
Negotiable
PSC Ratio for the Foreign investor can negotiate based on the following;
Investment amount Type of mineral Ore reserve Cost of Production
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PSC Ratio (Government Vs Investor)
Split between the investor and the State
100% production
Royalty Commercial Tax & Income Tax
deduct deduct
ded
uct
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Fiscal Regime in Mining Sector
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Dead Rent for one Square Km in Kyats
Sr.Type
of Minerals
Prospecting period Exploration Period
1st Yr 2nd Yr 1st Yr 2nd Yr 3rd Yr 4th Yr 5th Yr
1Industrial
Mineral (or)Stone
50,000 100,000 100,000 200,000 400,000 600,000 800,000
2Metallic Mineral
100,000 200,000 200,000 400,000 800,000 1,200,000 1,600,000
3Precious Metallic Mineral
200,000 400,000 400,000 800,000 1,60,000 2,400,000 3,200,000
Remark ; 1. Extension Period subject to the approval of the Ministry or the Department2. Exchange rate subject to daily exchange rate.
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Dead Rent for one Square Km in Kyats
Sr.Type
of Minerals
Feasibility Study period Developing Period Production Period
1st Yr 2nd Yr 1st Yr 2nd Yr 3rd Yr 1-20 Yrs
1Industrial
Mineral (or)Stone
800,000 1,200,000 1,400,000 1,600,000 2,000,000 2,000,000
2Metallic Mineral
1,600,000 1,600,000 1,800,000 2,100,000 2,400,000 3,000,000
3Precious Metallic Mineral
3,200,000 3,200,000 3,600,000 4,200,000 4,800,000 6,000,000
Remark ; 1. Extension Period subject to the approval of the Ministry or the Department2. Exchange rate subject to daily exchange rate.
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RoyaltyAccording to Myanmar Mines Law,
For Metallic Minerals - 3 to 4 % For Precious Metallic Minerals - 4 to 5 %For Industrial Minerals - 1 to 3% For Ruby, Sapphire, Jade and Diamond - 20%For other Gems - 10 % Royalty is levied on value of mineral sold. It is a sale based royalty and not a production based royalty.
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Expectation
Promote the utilization of Myanmar valuable mineral resources for the production to refined products through the contribution of foreign investment with advanced technologies.
© Lorn Pearson Trains
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Contact Information
• Kyaw Thet, Mr• Director • Department of Mines• Ministry of Mines• Office Building No. ( 19 ), Nay Pyi Taw, Myanmar.• Tel : +95-67-409378• Fax : +95-67-409376• E-mail : [email protected]
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Thanks for Your Attentions !!!