1. Republic of the Union of Myanmar Current Status of Mining Sector
Ministry of Mines
Current Status of Mining Sector
in Myanmar
Presented by
Kyaw Thet
Director
Department of Mines
September 9,2014

2. Outline of Presentation
Brief Introduction to Mining Sector of Myanmar
Policies and Legislations
Investment Information of Mining Sector
PSC Ratio (Government Vs Investor)

3. Acting Managing Director
Lead,
Zinc,
Silver,
Copper,
Iron,
Nickel, Cadmium, Cobalt, Tellurium,
Mercury ,
Aluminum,
Arsenic,
Gold
Tin
Tungsten
Rare Earth
Titanium
Platinum
Molybdenum
Radio Active Mineral
Heavy Mineral
Coal
Lime stone
Industrial
Mineral
Magnesium
Asbestos,
Graphite,
Glass Sand,
Barite
Manganese dioxide
Decoration Stones
Union Minister
Dr. Myint Aung
Dept. Of Mines
U Win Htein
(Director General)
DGSE
Dr. Ye Myint Swe
ME 1
U Kyaw San
(Managing Director)
ME 2
U Than Daing
Acting Managing Director
ME 3
U Htay Aung
Managing Director
MGE
U Aung Nyunt Thein
MPE
U Seing Lwin
MSMCE
U Aung Myo Thu
General Manager
Deputy Union Minister
U Than Tun Aung
Geological
Geotechnical
Analytical Laboratory
Policy
formulation,
Regulatory
measures
Royalty
Collection
Gems, Jade
& Jewellery
Pearl
Salt
By-product
from
Brine

4. © Photo: Soe Zeya Tun/Reuters
Introduction to Myanmar’s Mining Sector

5. Current Mineral Policy
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.
Here is the current mineral policy of Myanmar! Firstly to gem stone mining,
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 freely.
For Metallic Mineral Mining,
Private entrepreneurs are permitted to sell their mineral products freely in the local market and may also export them after mineral processing. Any kind of raw ores are not allowed to export.
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 electric power plants but only for domestic use, not allowed to export.

6. 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.

7. Permits Issued to Foreign Investors
Sr.
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 3.
Myanmar CNMC Nickel Co.,Ltd
China
Ferronickel 4.
Simco Song Da Joint Stock Co.,
Vietnam
Marble 5.
Asia Pacific Mining Ltd.
Lead, Zinc , Copper, Gold
Exploration Permit 6.
Nobel Gold Limited
Russia
Gold and Associated Minerals 7.
North Mining Investment Co., Ltd.
Feasibility Study 8.
De Rui Feng Investment Co., Ltd.
Tin-Tungsten 9.
Myanmar Yangtze Copper Co., Ltd.
Copper
10.
Myanmar Wanbao Copper Co., Ltd.
11.
Daewoo Precious Resources Co.Ltd
Korea
Copper, Gold
Exploration Permit
12.
GPS Joint Venture Co.,Ltd
Lead, Zinc
Large Scale Mining Permit
13.
Sichuan Chuandi( Myanmar) Mining Co.Ltd
Copper and associated Mineral
Exploration and F . S
14.
Royal Light Ron Ann Co., Ltd
Iron
15.
Geo Pro Mining Sea Ltd
Antimony and Associated Minerals
Prospecting, Exploration & F.S
Regarding to the new Foreign Investment Law which is promulgated in 2012, Foreign Investors can only invest on Large Scale. Here is the list of the Mining Permits & Exploration Permits Issued to Foreign Investors for large scale. The list are ….

8. Mining Permits Issued to the Investors at the end of August 2014
Issued 2043 mining permits;
Exploration Permit Nos
Small Scale Mining Permit Nos
Large Scale Mining Permit Nos
Subsistence Mining Permit Nos
Small Scale Prospecting Nos.
Mainly for Gold, Tin, Tungsten, Copper, Antimony, Iron, Coal , Industrial Minerals, Marbles, Granite , Magnesium dioxide and lime stone.
Ministry of Mines issued totally 1569 permits to the local and foreign investors for small and large scales,
Exploration Permit Nos
Small Scale Mining Permit Nos
Large Scale Mining Permit Nos
Subsistence Mining Permit Nos
Mainly for Goal, Tin, Tungsten, Copper, Antimony, Iron, Coal , Industrial Minerals, Marbles, Granite , Magnesium dioxide and lime stone.

9. Policies and Legislation
© Photo: Bencito the Traveller

10. Mining Laws and Relating Laws
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)
Myanmar Mine Safety Law (Upcoming)
In the mining sector, these are Myanma Mining Laws and the relating laws which are very important for the investors.
Like Myanmar Mines Laws, some of these Laws are trying to amend for more reliable and compatible one to another.
Myanmar Explosive Law (Upcoming)

11. Issued Public Notice
Environmental Conservation for Four Main Rivers Notification No. 26/2012 (Dated on )
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.

12. Update Investment Policy on Extractive Industries
Adopted Social Responsible Investment (SRI) Policy.
Since 2nd July, became a candidate country of EITI.
Trying to become a Compliant Country of EITI.

13. Update Investment Policy on Mining Industries
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.

14. Amending the Existing Laws and Related Regulations
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.

15. Amending the Existing Laws and Related Regulations
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.
To supervise the whole mining sector, Myanmar needs an appropriate law and regulations which compatible with the updated relating laws. Targeting the statement on the constitution “All mineral deposits found either on or under the soil of any land in the continental shelf are deemed to be owned by the State.”, Myanmar Mines Law was drafted for amending with the advice of experts, publics and technical assistance of AusAID, World Bank and ADB. The new one come out very soon hopefully at the end of this year.
MIC (Myanmar Investment Commission) promulgated the new Foreign Investment Law and Regulation and also Environmental Conservation Laws was promulgated and related rules was drafted and still processing.

16. 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.

17. Investment Information

18. Advantages of New Foreign Investment Law
Foreign Investment Law (FIL)
(2nd November, 2012)
Foreign Investment Rules
(31st January, 2013)
Efficiency
Transparency
Environment
Based on
Allowing
Employment of Expatriates
Land Lease
Guarantee
Incentives & Exemptions

19. 1 2 3 Forms of Investment 100 % Foreign Owned Joint Venture
Any system included in the Mutually agreed contract 1 2 3
A Citizen or Concerned Government Organization
The party which mention in the contract.

20. Procedures of Foreign Investment in Mining Sector of Myanmar
Letter of Courtesy Call
Officials discuss on
mineral commodity
Site visit
Submit Proposal 4 3 2
Foreign Investors have to do the courtesy call with the Union Minister or some of the officials form the Ministry of Mines.
Detail discussion have been done on concern minerals between Investors and respective departments.
And then go the site visit accompanying the experts form the company and department.
If satisfied to invest, submit the proposal to Ministry.
Last decades, Myanmar is lonely form the international relations. The true information about the Myanmar is difficult to access.
Thus why
Before investing in Myanmar, foreign investors need to understand a number of regulatory and legal topic as well as business climate.
Some of these are corporate registration, legislation, work permits, industrial licensing, taxation, investment promotion and the availability of infrastructure and facilities. 1

21. 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
The proposal must include
Company Registration in Myanmar
Company Profiles and Other Relevant fact of company
Recommendation and endorsement of the respective embassy
Map of Proposed Area with Respective Coordinate
List of Board of Directors
Bank Statement
Initial Work Program
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.

22. (Government Vs Investor)
PSC Ratio
(Government Vs Investor)
© dreamstime

23. (Government Vs Investor)
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.
PSC Ratio for the Foreign investor can negotiate based on the following;
Investment amount
Type of mineral
Ore reserve
Cost of Production
Foreign
Investor
Negotiable

24. (Government Vs Investor)
PSC Ratio
(Government Vs Investor)
Split between the investor and the State
100% production
Royalty
Commercial Tax & Income Tax
deduct

25. Fiscal Regime in Mining Sector

26. Dead Rent for one Square Km in Kyats
Sr.
Type
of Minerals
Prospecting period
Exploration Period
1st Yr
2nd Yr
3rd Yr
4th Yr
5th Yr 1
Industrial Mineral (or)
Stone
50,000
100,000
200,000
400,000
600,000
800,000 2
Metallic Mineral
1,200,000
1,600,000 3
Precious Metallic Mineral
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.

27. Dead Rent for one Square Km in Kyats
Sr.
Type
of Minerals
Feasibility Study period
Developing Period
Production Period
1st Yr
2nd Yr
3rd Yr
1-20 Yrs 1
Industrial Mineral (or)
Stone
800,000
1,200,000
1,400,000
1,600,000
2,000,000 2
Metallic Mineral
1,800,000
2,100,000
2,400,000
3,000,000 3
Precious Metallic Mineral
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.

28. Royalty According to Myanmar Mines Law,
For Metallic Minerals to 4 %
For Precious Metallic Minerals to 5 %
For Industrial Minerals to 3%
For Ruby, Sapphire, Jade and Diamond %
For other Gems %
Royalty is levied on value of mineral sold.
It is a sale based royalty and not a production based royalty.

29. Expectation
© Lorn Pearson Trains
Promote the utilization of Myanmar valuable mineral resources for the production to refined products through the contribution of foreign investment with advanced technologies.

30. Contact Information
Kyaw Thet, Mr
Director
Department of Mines
Ministry of Mines
Office Building No. ( 19 ), Nay Pyi Taw, Myanmar.
Tel :
Fax :

31. Thanks for Your Attentions !!!
Thanks for your kindness attentions !