The Republic of the Union of Myanmar Ministry of Mines

Investment Opportunities in Mining Sector

Presented by

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U Win Htein Director General Department of Mines 1 Ministry of Mines

1.

Introduction
( i ) Organization Chart of the Ministry ( ii ) Legal Framework

2. 3.

Mineral Occurrence in Myanmar Investment Information

( i ) Procedure for the Foreign Investment ( ii ) Tax Regime in Mineral Sector ( iii ) Royalty ( iv ) Categories of Mining Permits ( v ) Production Sharing Contract ( P.S.C ) System ( vi ) FDI List

4.

Conclusion

Introduction
Ministry of Mines is the government authority responsible for implementation of the policy, legislation and enforcement of Law, Rules and Regulations in the mining sector.

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Organisation Chart of the Ministry

Union Minister

No.(1) Mining Enterprise

No.(2) Mining Enterprise

No.(3) Mining Enterprise

Myanmar Gems Enterprise

Myanmar Salt and Marine Chemical Enterprise

Myanmar Pearl Enterprise

Department of Geological Survey & Mineral Exploration

Department of Mines

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Myanmar is endowed with mineral resources such as copper, gold, lead, zinc, silver, tin and nickel and so on. Myanmar has a lot of potential for mining sector if we can combine with our rich mineral deposits and new technologies. So, I would like to invite the investors in Mining Sectors as not only FDI( Foreign Direct Investment ) but also partnership with local companies in Myanmar.
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Legal Framework
Now a days , MIC ( Myanmar Investment Commission) is trying to promulgate the new Myanmar Investment Law. The Union of Myanmar Mines Law was promulgated in September 1994. Rules relating to the law followed in December 1996. At Present, Ministry of Mines is trying to amend the Myanmar Mines Law with the advice of experts and publics. ( i ) To facilitate the environmental conservation and Green Mining . (ii) To encourage for investments more easily and trustyfully. According to the Myanmar Mines law, all natural mineral deposits found either on or under the soil of any land in the continental shelf are deemed to be owned by the State.
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GEOLOGICAL MAP OF MYANMAR ( 2008 )

Compilation and Digital Geological map of Myanmar based on the 1:1M scale (1977) was completed in 2008 and printed in 1: 1 million scale. It was registered and copy right at the Myanmar registration office in 2008.

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92

94

LO

96
IT I

98

100

102

28

IN
HI M

DI A
YAN

TH

A LA

26

NA G

G ON IL L IFT L SH UP

K IR MI

DI SA NG

NJ AL U NT O FR ST RU ST TH RU T TH A US G HR LS T A N IL H

RU ST

N
28

MINERAL BELTS OF MYANMAR

US HR T T

26
A

CHINA

MO GO K

M ani pur 24

EAU

24

22
MT . V I C TOR IA D OME

Man dalay
SH A
M t. Popa

PLA T

INDEX

22

Tin- Tungsten Belts Antimony Belts

20

20

Lead Zinc S ilver- Copper Belts Gold- Copper- Iron Belts

UST THR

EAS T je ctiv RIDG E e)

TH AIL AND
18

Nickel- Chromite- Copper- Gold- Platinum Belts Iron Manganese Belt The Precious S tone Belts

18

NIN ETY

( pro

Yan gon M awlamyin g

16

16

Oil- Gas and Coal Belts

ADAMAN S EA
2 00 km

14

14

12

12

10 92

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10 96 98 100 102

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Ferrous Metals in Myanmar

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11

Non Ferrous Metals in Myanmar

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12

Coal & Industrial Metals in Myanmar

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13

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Major Minerals Produced by the Country

Major minerals produced and exported are Cathode Copper, Refined Lead, Refined Silver, Zinc Concentrate, Refined Tin, Tin Concentrates, Tin-wolfram Mixed Concentrates and Coal

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Major minerals produced for domestic consumptions areGold Iron and Steel Limestone Industrial Minerals and Barites Powder

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Gemstones such as Rubies, Sapphire, colored gemstone and Jade are also exported. Myanmar have held emporiums for Jade, Gems and Pearls since 1964 with the pricing based on Foreign Currencies at least twice a year. ( sell through tender or competitive bidding )

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1. In accord with the policy of the Ministry of Mines, our ministry is not making own investment, but to encourage foreign and local investors to invest in the mining sector. 2. The investor can invest as a foreign direct investment (FDI) or joint investment with local company. 3. For investors who would like to do exploration to confirm the reserve of a deposit or to start with the grassroots exploration operations in a virgin land , they may apply accordingly clearly stating their intentions.
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4. Funds required to conduct the prospecting, exploration and feasibility study are borne by the investor 100% at his own risk. 5. Ministry of Mines not allowed to export the raw ore.

6. Investor should be made value added (or) mineral processing. 7. Ministry encourage to establish the processing plants with the latest technologies.

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Procedures for the Foreign Investment in Mining Sector

1. Foreign companies have to send letter of courtesy call to the Union Minister through the respective Embassy in Myanmar to Ministry of Foreign Affairs to the Ministry of Mines officially.

2. The Union Minister or responsible officials will discuss the investment opportunities in mining sector mainly focus on mineral commodity and targeted area.
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3. Site visit will be arranged if requested by the investors or company after technical discussion with responsible departments. Recommendation letter from the respective Embassy, letter of undertaking, tentative site visit schedule and passport copy are required to submit to the Ministry of Mines two week ahead. 4. After the site visit, if the investor decided to invest in Myanmar, a proposal should submit to the Ministry of Mines and copy to relevant departments. 5. Minerals prospecting, exploration and feasibility study are concerned to DGSE and other Mining Enterprises are responsible for mining operation and production stages.
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6. The following documents should be included with the

proposal: (a) Company Registration (b) Company Profile and other relevant facts about the company (c) Recommendation and endorsement of the respective Embassy in Myanmar (d) Financial Bank Statement (e) List of the Board of Directors (f) Initial work programme (g) Map of the proposed area with coordinates.
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7. 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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Tax Regime in Mineral Sector

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Dead Rent for one Square Km in Kyats

Type of Minerals
Industrial Mineral (or) Stone Metallic Mineral Precious Metallic Mineral

Sr.

Prospecting period 1st Yr

50,000

Exploration Period 1st Yr

100,000

2nd Yr
100,000

2nd Yr
200,000

3rd Yr
400,000

4th Yr
600,000

5th Yr
800,000

100,000

200,000

200,000

400,000

800,000

1,200,000

1,600,000

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 Department 2. Exchange rate subject to daily exchange rate.
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Dead Rent for one Square Km in Kyats

Type of Minerals Feasibility Study period Developing Period Production Period

Sr.

1st Yr
1 Industrial Mineral (or) Stone Metallic Mineral Precious Metallic Mineral 800,000

2nd Yr
1,200,000

1st Yr
1,400,000

2nd Yr
1,600,000

3rd Yr
2,000,000

1-20 Yrs
2,000,000

1,600,000

1,600,000

1,800,000

2,100,000

2,400,000

3,000,000

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 Department 2. Exchange rate subject to daily exchange rate.
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Royalty
According 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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Categories of Mining Permits

1. 2. 3. Prospecting Permits Exploration Permits Feasibility Study 1 yr 1 yr 1 yr 1 yr 5 yrs 25 yrs
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4. Subsistence Mining Permits 5. Small Scale Mining Permits -

6. Large Scale Mining Permits

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Foreign Direct Investments(FDI)

Sr. Enterprise or Dept: Company Type of Mineral Current status Location

1.

D.G.S.E

Nobel Gold Limited (Russia )

Gold and associated minerals

Exploration

Bhamauk, Sagaing Region

2.

ME(1)

Zinc Ore (i) Conerstone Resources (Myanmar)Ltd (Australia) (ii) North Mining Ferronickle Investment Alloy Co.,Ltd (China) (iii) Asia Pacific Mining Ltd (China) Lead, Zinc , Copper, Gold

Production

Shan State, Minepon Township Chin State, Teetain Township, Hmewtaung Track

Feasibility Study

Feasibility Study

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Kantbalu - Wuntho (Eastern Area) 29 Sagaing Region

Sr. Enterprise
or Dept: 5. ME(2)

Company

Type of Mineral
72% Tin Concentrate

Current status
Production

Location

Foreign Direct Investments(FDI)

ME(3) (i) Myanmar CNMC Nickel Co.,Ltd ( China) Ferro Nickel Developing

Myanmar Ponepipet Co.,Ltd (Thai Land)

Taninthayi Region, Dawe Township, Heinda Mine Thabeikkyin Township, Mandalay Region Hteechaik Township, Sagaing Region Nayputaung, Taungkoke Township, Rakhine State
30

6.

(ii) Simco Song Da Joint Stock Company ( Viet Nam)

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Marble

Developing

1.

At present, Myanmar practice the production sharing contract ( P.S.C ) system.

2. 3.

Our own Mines are already transferred to Private Companies. It is the policy of the Ministry of Mines not to make investment on its own, but to encourage foreign and local investors to invest with the advanced technologies.

4.

Well known deposits are already occupied by local Companies . So, Foreign Investor should be started from Grassroots Exploration.

5.

You are warmly welcome to invest in Mining Sector.

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Thank you very much for your kind attention.

Ministry of Mines, Myanmar

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