investment opportunities in mining sector in myanmar
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The Republic of the Union of Myanmar
Ministry of Mines
Investment Opportunities in Mining Sector
Presented by – U Win Htein
Director General
Department of Mines
Ministry of Mines6/15/2012 1
1. Introduction
( i ) Organization Chart of the Ministry
( ii ) Legal Framework
2. Mineral Occurrence in Myanmar
3. 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 governmentauthority responsible for implementation ofthe policy, legislation and enforcement ofLaw, Rules and Regulations in the miningsector.
6/15/2012 3
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
Organisation Chart of the Ministry
6/15/2012 4
�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.
6/15/2012 5
� 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.
Legal Framework
6/15/2012 6
6/15/2012 7
• 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.
GEOLOGICAL MAP OF MYANMAR
( 2008 )
6/15/2012 8
MINERAL BELTS OF MYANMAR
Tin- Tungsten Belts
Antimony Belts
Lead – Zinc – Silver- Copper Belts
Gold- Copper- Iron Belts
Nickel- Chromite- Copper- Gold- Platinum Belts
Iron – Manganese Belt
The Precious Stone Belts
Oil- Gas and Coal Belts
INDEX
NIN
ET
Y
EA
ST
R
IDG
E( p
roje
ctiv
e)
Yangon
TH
RU
ST
ADAMAN SEA
SH
AN
P
LA
TE
AU
MT .VI CTORIA
DOME
NA
GA
HIL
LS
M anipur
CHINA
TH AIL AND
INDIA
HI MALAYAN
FRONTA L
THRU ST
INJU
T HR U
ST
M t.Popa
LOHIT
THRUST
THRUST
THRUST
DISA
NGNA
GA
SHIL LONG MIKIR
UPLIFT
2 00 km
92°
10°
12°
14°
16°
18°
20°
22°
24°
26°
28°
92°
94° 96° 98° 100° 102°
94° 96° 98° 100° 102°
N
10°
12°
14°
16°
18°
20°
22°
24°
26°
28°
MO
GO
K
Mandalay
M awlamying
6/15/2012 9
6/15/2012 10
6/15/2012
Ferrous Metals in Myanmar
11
6/15/2012
Non Ferrous Metals in
Myanmar
12
6/15/2012
Coal & Industrial Metals in
Myanmar
13
6/15/2012 14
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
6/15/2012 15
�Major minerals produced for domestic consumptions are-
� Gold
� Iron and Steel
� Limestone
� Industrial Minerals and
� Barites Powder
6/15/2012 16
� 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 )
6/15/2012 17
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.6/15/2012 18
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.
6/15/2012 19
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.
Procedures for the Foreign
Investment in Mining Sector
6/15/2012 20
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.
6/15/2012 21
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.
6/15/2012 22
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.
6/15/2012 23
Tax Regime
in
Mineral Sector
6/15/2012 24
Dead Rent for one Square Km in Kyats
Sr.Type
of Minerals
Prospectingperiod
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.
6/15/2012 25
Dead Rent for one Square Km in Kyats
Sr.Type
of Minerals
Feasibility Study period
Developing PeriodProduction
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.
6/15/2012 26
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.
6/15/2012 27
Categories of Mining Permits
1. Prospecting Permits - 1 yr
2. Exploration Permits - 1 yr
3. Feasibility Study - 1 yr
4. Subsistence Mining Permits - 1 yr
5. Small Scale Mining Permits - 5 yrs
6. Large Scale Mining Permits - 25 yrs
6/15/2012 28
Foreign Direct Investments(FDI)
Sr.Enterprise
orDept:
CompanyType of Mineral
Current status Location
1. D.G.S.E Nobel Gold Limited(Russia )
Gold and associatedminerals
Exploration Bhamauk, Sagaing Region
2. ME(1) (i) ConerstoneResources
(Myanmar)Ltd(Australia)
Zinc Ore Production Shan State,
Minepon
Township
(ii) North Mining
Investment
Co.,Ltd
(China)
Ferronickle
Alloy
Feasibility Study Chin State,
Teetain Township,
Hmewtaung Track
(iii) Asia Pacific
Mining Ltd
(China)
Lead, Zinc ,
Copper,
Gold
Feasibility Study Kantbalu - Wuntho
(Eastern Area)
Sagaing Region6/15/2012 29
Foreign Direct Investments(FDI)
Sr. Enterpriseor
Dept:
Company Type of Mineral
Current status
Location
5. ME(2) Myanmar
Ponepipet Co.,Ltd
(Thai Land)
72% Tin
Concentrate
Production Taninthayi
Region,
Dawe Township,
Heinda Mine
6. ME(3) (i) Myanmar
CNMC Nickel
Co.,Ltd
( China)
Ferro Nickel Developing Thabeikkyin
Township,
Mandalay
Region
Hteechaik
Township,
Sagaing Region
(ii) Simco Song
Da Joint Stock
Company
( Viet Nam)
Marble Developing Nayputaung,
Taungkoke
Township,
Rakhine State
6/15/2012 30
1. At present, Myanmar practice the production sharing contract ( P.S.C )
system.
2. Our own Mines are already transferred to Private Companies.
3. 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.
6/15/2012 31
Thank you very much for your kind attention.Thank you very much for your kind attention.Thank you very much for your kind attention.Thank you very much for your kind attention.
Ministry of Mines, Myanmar
6/15/2012 32
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