Investing in mining in Myanmar

Investing in Myanmar mining sector

Myanmar Mining Joint Ventures

Foreign mining companies can establish mining joint venture in Myanmar in cooperation with local partners (an individual, a private company).

The mineral policy of the Myanmar Government aims to:-

To extend the participation of local and foreign enterprises and state-owned enterprises for exploration and production of mineral resources;
To emphasize environmental preservation in exploration and production of mineral resources;
To emphasize rehabilitation of abandoned mines;
To review the world market update and look forward to production and marketing of mineral commodities which are demanded;
To strive for fulfilling domestic demand and promote export the increased production of mineral commodities; and
To strive for production and marketing of enhanced downstream products of metals, gems and jewellery.

The Myanmar Department of Mines (DOM) utilises Production Sharing Contracts (PSCs). Under PSC agreement the investor are required to contribute 100% of investment. The government takes a share of the production according to a production sharing ratio agreed between the mining joint venture partners. The Production Sharing Ratio is based on the mineral commodity like Gold, Copper, Lead, Zinc, Tin, Tungsten, Nickel, Manganese, Industrial Raw Mineral and Coal etc. and the commodities current price on the London Metal Exchange. investing in mining in Myanmar

The Department of Mines has issued information on http://www.mining.gov.mm/DM/1.DM/Details.asp?submenuID=7&sid=343 and the Myanmar EITI Report covered on oil and gas, gems and jade, other minerals and pearls in the Myanmar Mining Sector.

At present, the Myanmar-China Non-ferrous Metal & Mining Co., Ltd (China), Myanmar-Pongpipat Co., Ltd (Thailand), Simco Songda (Vietnam) have invested in mining joint ventures in Myanmar on a PSC basis.

Myanmar Mining | The Investment Process

Steps in the Investment Process

As part of the investment process, mining companies seeking to undertake projects in Myanmar should follow the steps set out below:-

Send letter of courtesy call to the Union Minister through the respective Embassy in Myanmar to Ministry of Foreign Affairs and to Department of Mines;
Discuss the investment opportunities in mining sector mainly focus on mineral commodity and targeted area;
Site visit with responsible departments after discussion;
Submit a proposal to Department of Mines and copy to relevant departments;
Obtain recommendations from the respective authorities;
Apply to MIC with the approval of Department of Mines and other recommendation documents;
Apply for a company registration at DICA while submitting to MIC.