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7/31/2019 Investment Opportunities in Mining
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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 MinesMinistry of Mines6/15/2012 1
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1. Introduction
( i ) Organization Chart of the Ministry
( ii ) Legal Framework2. 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
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IntroductionMinistry of Mines is the government
authority responsible for implementation ofthe policy, legislation and enforcement of
Law, Rules and Regulations in the miningsector.
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Union Minister
No.(1)Mining
Enterprise
No.(2)Mining
Enterprise
No.(3)Mining
Enterprise
MyanmarGems
Enterprise
MyanmarSalt
and
MarineChemical
Enterprise
MyanmarPearl
Enterprise
Departmentof
Geological
Survey&
MineralExploration
Departmentof
Mines
Organisation Chart of the Ministry
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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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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 depositsfound either on or under the soil of any land in the continental shelf are
deemed to be owned by the State.
Legal Framework
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Compilation and Digital Geological map ofMyanmar 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 Myanmarregistration office in 2008.
GEOLOGICAL MAP OF MYANMAR
( 2008 )
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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
NINETY
E
AST
RID
GE
(proje
ctiv
e)
Yangon
THRUST
ADAMAN SEA
SH
AN
PL
ATEAU
MT.VIC TORIA
DOME
NAGA
HIL
LS
Manipur
CHINA
THAILAND
INDIA
HIMALA
YAN
FRONT
AL
THRU
ST
INJUTH
RUST
Mt.Popa
LOHIT
THRUST
THRU
ST
THRU
ST
DI
SANG
NAGA
SHILL
ONG
MIKIR
UPLIF
T
200 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
MOGOK
Mandalay
Mawlamying
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6/15/2012
Ferrous Metals in Myanmar
11
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6/15/2012
Non Ferrous Metals in
Myanmar
12
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6/15/2012
Coal & Industrial Metals in
Myanmar
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 are-
Gold
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 encourageforeign 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 confirmthe 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
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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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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 theinvestment opportunities in mining sector mainly focus on
mineral commodity and targeted area.
Procedures for the ForeignInvestment in Mining Sector
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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 Ministryof Mines two week ahead.
4. After the site visit, if the investor decided to invest in Myanmar, aproposal 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 Regimein
Mineral Sector
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Dead Rent for one Square Km in Kyats
Sr.Type
ofMinerals
Prospectingperiod
Exploration Period
1stYr 2ndYr 1stYr 2ndYr 3rdYr 4thYr 5thYr
1Industrial
Mineral (or)Stone
50,000 100,000 100,000 200,000 400,000 600,000 800,000
2MetallicMineral
100,000 200,000 200,000 400,000 800,000 1,200,000 1,600,000
3PreciousMetallic
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 Studyperiod
Developing PeriodProduction
Period
1stYr 2ndYr 1stYr 2ndYr 3rdYr 1-20 Yrs
1Industrial
Mineral (or)Stone
800,000 1,200,000 1,400,000 1,600,000 2,000,000 2,000,000
2MetallicMineral
1,600,000 1,600,000 1,800,000 2,100,000 2,400,000 3,000,000
3
Precious
MetallicMineral
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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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. Prospecting Permits - 1 yr2. 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
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( )
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Foreign Direct Investments(FDI)
Sr.Enterprise
orDept:
CompanyType ofMineral
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,
MineponTownship
(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
Sr Enterprise Company Type of Current Location
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Foreign Direct Investments(FDI)
Sr. Enterpriseor
Dept:
Company Type of Mineral
Currentstatus
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 State6/15/2012 30
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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 itsown, 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.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
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