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Union Minister
Myanmar Gems
Enterprise
Myanmar Pearl
Enterprise
Departmentof
GeologicalSurvey &Mineral
Exploration
Departmentof
Mines
LeadZincSilverCopperIronNickel
ChromiteAntimony
GoldTin
TungstenRare EarthTitaniumPlatinum
REE
CoalLime stoneIndustrialMinerals ManganeseDecorative
stone
Gems,Jade&
Jewelry
PearlBreedinghervesting Geological
SurveyMineral
ExplorationLaboratory
FDI
MineralPolicy
formulation,Regulationmeasures
Environmental
No.(1) Mining
Enterprise
No.(2) Mining
Enterprise
Organization Chart of the Ministry
Permanent Secretary(Forest Sector)
2
Permanent Secretary(Mining Sector)
3
Amended Myanmar Mining Law ( 2015 )
Myanmar Mining Rules(1996)( New Myanmar Mining Rule are now under preparation )
Amended Myanmar Gems Law (2016)
Myanmar Gems Rules( 1995)( New Myanmar Gems Rules are now under preparation )
Amended Myanmar Pearl Law (2014)
Myanmar Pearl Rules(2015)
MiningLawsandRelatingRulesofMyanmar
14
www.mining.gov.mm
StateownedEconomicEnterpriseLaw
ForeignInvestmentLaw(2012)
ProtectionofWildLifeandWildPlantsandConservationofNaturalAreasLaw(1994)
MyanmarInsuranceLaw(1993)
EnvironmentalConservationLaw(2012)
CulturalHeritageLaw(1998)
4
MyanmarMineSafetyLaw(Upcoming)
MyanmarExplosiveLaw(Upcoming)
OtherrelatedLaws
5
Investors of Mining Industries in Myanmar shall perform –
Initiate Environment Examination (IEE)
Environment Impact Assessment (EIA)
Environmental Management Plan (EMP)
Funds Deposit to Designated Bank for Mine Closure, Mine Reclamation and CSR
activities.
Become a responsible mining projects.
UpdateInvestmentrequirementsonMiningIndustries
Compare with amended law & old one.
Description 1994, Mining Law 2015, Amended Mining Law
Permits 1. Mineral Prospecting.
2. Mineral Exploration.
3. Mining.
4. Integrated permit for above
permits
1. Mineral Prospecting.
2. Mineral Exploration.
3. Feasibility Study.
4. Mining.
5. Mineral Processing.
6. Trading
7. Integrated permit for more
than one permit.
6
Description 1994, Mining Law 2015, Amended Mining Law Large ScalePermit
A period not exceeding 25 yearsshall be permitted.
A period upon the estimated life of the oredeposit exceeding 15 years to 50 years.
Medium ScalePermit
Not Include. Not more than 15 Years.
Small ScalePermit
A period not more than 5 years. Not more than 10 Years.
ArtisanalPermit
A period not more than 1 years. Un change.
ExplorationPermit
A period not more than 3 years. Un change.
Feasibility Permit Not Include. Period may be 1 year.
ProcessingPermit
Not Include. Period may be 1 year.Purifying, Refining, smelting and electrowinning.
Trading Not Include. Period may be 1 year.Selling, purchasing, transporting and storing .
Compare with amended law & old one.
7
Power Shearing for the sub national level.
Description 1994, Mining Law
2015,Amended Mining Law
Section (6) Subsistence (Artisanal)
production licenses of
gemstone, metallic mineral,
industrial mineral or stone,
shall apply to the respective
Mining Enterprise or to the
officer authorized by the
Ministry in accordance with
the stipulations for obtaining a
permit.
Prospecting, Exploration Small
scale mining or artisanal mining
licenses for metallic mineral ,
industrial minerals and stone
with local investment shall apply
to the sub national level license
allocation committee which is
formed by union Ministry.
8
Power Shearing for the sub national level.
Description 1994, Mining Law 2015,Amended Mining Law
Section(6)A Not include The Ministry may form the sub
national level license allocation
committee with the approval of the
Union Government.
9
Power Shearing for the sub national level.
Description 1994, Mining Law 2015, Amended Mining Law
Section (10) The respective Mining
Enterprise or the officer
authorized by the Ministry
may issue permit in respect of
subsistence production, of
gemstone, metallic mineral
industrial mineral or stone,
specified in the notification by
the Ministry.
The relevant sub national level
license allocation committee that
are formed and assigned with the
approval of the Union Government
may issue the permit consultation
with the Ministry for Prospecting,
Exploration Small scale mining or
artisanal mining licenses for metallic
mineral , industrial minerals and
stone. 10
Exclusive right
Description 1994.,Mining Law
2015, Amended Mining Law
Section (11)A Not Include. If the person who was successfully done the
prospecting , exploration and feasibility study
of mineral permits applies for permit to carry
out production at the work site where he had
done, the license authority ( Ministry,
Department, sub national level license
allocation committee) have to allow him to do
so.11
Trading License
Description 1994. Mining Law
2015, Amended Mining Law
Section(11)B Not Include. If the person who does not carry out
the mineral production himself but
carries out the mineral processing by
purchasing the minerals from the
person who carried out the mineral
production shall separately apply for
permit for trading .
12
Environmental Conservation
Description 1994. Mining Law 2015, Amended Mining Law
Section (13)e ‐ 1 Not Include. Focusing on activities to minimize the
environmental degradation ,
socioeconomics impact on the local
community and raising fund for annual
environmental conservation work.
Section (13)e ‐ 2 Not Include. Accordance with the mine reclamation
procedures after the production or at the
mine closure stage, land preparation,
rehabilitation, re plantation have to perform
by raising a fund.
Geological map of Myanmar ( 1977)
Geological map of Myanmar by GIS( 2008)
NIN
ETY
E
AST
R
IDG
E(p
roje
ctiv
e)
Yangon
THRUST
ADAMAN SEA
SHA
N
P
LATE
AU
MT.VICTORIA
DOME
NAGA
HILLS
Manipur
CHINA
THAILAND
INDIA
HIMALAYAN
FRONTAL
THRUST
INJU
THRUST
Mt.Popa
LOHITTHRUST
THRUST
THRUST
DISANGNAGA
SHILLONG MIKIR
UPLIFT
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°
MO
GO
K
Mandalay
Mawlamying
Tin- Tungsten Belts
Antimony Belts
Lead – Zinc – Silver- Copper Belts
Gold- Copper- Iron Belts
Ni-Cr-Cu-Au-Pt Belts
Iron – Manganese Belt
The Precious Stone Belts
Oil- Gas and Coal Belts
MINERAL BELTS OF
MYANMAR
MINERAL PROVINCES OF MYANMAR
Tin- Tungsten Belt
Antimony Belt
Lead – Zinc – Silver-
Belt
Gold- Copper- Iron
Belt
Nickel- Chromite-
Copper- Gold-
Platinum Belt
Iron – Manganese Belt
The Precious Stone
Belt
Oil- Gas and Coal Belt
NIN
ETY
E
AST
R
IDG
E(p
roje
ctiv
e)
YangonTH
RUST
ADAMAN SEA
SHA
N
P
LATE
AU
MT.VICTORIA
DOME
NAGA
HILLS
Manipur
CHINA
THAILAND
INDIA
HIMALAYAN
FRONTAL
THRUST
INJU
THRUST
Mt.Popa
LOHITTHRUST
THRUST
THRUST
DISANGNAGA
SHILLONG MIKIR
UPLIFT
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°
MO
GO
K
Mandalay
Mawlamying
MINERAL DITRIBUTION
DGSE (2006)
8/16/2017 16
20
and FeasibilityCurrent Large Scale Joint Venture for Mineral Prospecting, Exploration
and Feasibility
21
Sr. Company Registered Country
Type of Mineral Area ( Acre) Type of Permit
1. Conerstone Resource (Myanmar) Ltd
Australia Zinc Ore 1976.8 Large Scale Mining Permit
2. Myanmar PonepipetCo.,Ltd
Thailand Tin Concentrate 2110 Large Scale Mining Permit
3. Myanmar CNMC Nickel Co.,Ltd
China Ferronickel 5082.37 Large Scale Mining Permit
4. Simco Song Da Joint Stock Co.,
Vietnam Marble 585.72 Large Scale Mining Permit
5. Asia Pacific Mining Ltd. China Lead, Zinc , Copper, Gold 160419 Exploration Permit
6. Myanmar Yangtze Copper Co., Ltd.
China Copper 5841.44 Large Scale Mining Permit
7. Myanmar Wanbao Copper Co., Ltd.
China Copper 7946.36 Large Scale Mining Permit
8. Daewoo Precious
Resources Co.LtdKorea Copper, Gold 23968.70
Exploration Permit
9.GPS Joint Venture Co.,Ltd China Lead, Zinc 495 Large Scale Mining Permit
10. Sichuan Chuandi
( Myanmar) Mining Co.LtdChina
Copper and associated
Mineral6500.3
Exploration and F . S
PermitsIssuedtoForeignInvestors
Sr. Company Registered
Country
Type of Mineral Area ( Acre) Type of Permit
11. Royal Light Ron Ann Co., Ltd China Iron 500Exploration and F . S
12. Geo Pro Mining Sea Ltd RussiaAntimony and Associated
Minerals2313
Prospecting, Exploration & F.S
13. Asia Mining Ltd Australia Heavy Sand 13195.14Feasibility Study
14.Myanmar VES Joint Venture
Co.,Thailand Jewellery Making 0.11
Production
15. Myanmar Tasaki Co., Japan Pearl 28159.52Pearl Firm
16. Myanmar Atlantic Co., Australia Pearl 10501.75Pearl Firm
17. Myanmar Adman pearl Thailand Pearl 19199.67 Pearl Firm
18. Belpearl S’pore Pearl 7680 Pearl Firm
19. Wuntho Resources Co.Ltd.Australia Copper and Associated
Minerals90550
Prospecting, Exploration & F.S
20. LumpoondumMining Co.Ltd.Thailand Coal 63843 Exploration & Feasibility Study
21. Sino Chateau Co.Ltd.England Tin‐Tungsten and
Associated Minerals
390 Exploration & Feasibility Study
Royalty
1994, Mining Law 2015, Amended Mining Law
1. Gemstones 5 ‐ 7.5 %
2. Gold ,Silver, Platinum 4 ‐ 5%
( Precious metallic Minerals)
3. Iron, Zinc, Copper 3 – 4 %
( Other Metallic Minerals)
4. Industrial Mineral 1 – 3%
1. Gold , Platinum, Uranium 5 %
( Precious metallic Minerals)
2. Silver, Copper, Tin, Tungsten, 4 %
Nickel, Rare Earth, Titanium
3. Iron, Zinc, Antimony , 3 %
4. Industrial Mineral , Stone 2%
23
Investment Type
Description 1994. Mining Law
2015, Amended Mining Law
Article (35) A Not Include. The Ministry shall carry out the operation by
cooperation with the permit holder in form of
Production Sharing ( include EIA cost)
Equity Sharing
Profit Sharing base on parties’ contribution.
24
Permitted Area Compare future mining regulation and old one
Type of Permit 1996 Mining Regulation
Future Mining Regulation
Prospecting Not more than 4200 KM2 Not more than 700 KM2
Exploration Not more than 3150 KM2 Un change
Large
Scale
Depend upon the deposit size. Un change
Medium Scale not include Industrial mineral ‐ < 1 Km2
> 50 Acre
Other Minerals ‐ < 50 Acre
Gold ‐ < 20 Acre
Small
Scale
Industrial Mineral ‐< 1Km2
Other Minerals ‐ < 50 Acre
Gold ‐ < 20 Acre
Industrial Mineral ‐< 20 Acre
Other Minerals ‐ < 10 Acre
Gold ‐ < 1 Acre
Artisanal < 1 Acre < 1 Acre 4
26
Sr MineralCommodity
Prospecting Exploration Feasibility Study Development Production up to 20 years
1st year 2nd year 1st year 2nd year 3rd year 4th year 5th year 1st year 2nd year 1st year 2nd year 3rd year1 Industrial
Raw Mineral(Coal, Lst, etc)
50,000 100,000 100,000 200,000 400,000 600,000 800,000 800,000 1,200,000 1,400,000 1,600,000 2,000,000 2,000,000
2. Metal(Cu, Pb, Zn, Sb, Sn‐W, Fe, Ni, Cr, Mn, etc)
100,000 200,000 200,000 400,000 800,000 1,200,000 1,600,000 1,600,000 1,600,000 1,800,000 2,100,000 2400000 3,000,000
3. Precious metal(Au, Ag, Pt, Ta, Nb etc)
200,000 400,000 400,000 800,000 1,600,000 2,400,000 3,200,000 3,200,000 3,200,000 3,600,000 4,200,000 4,800,000 6,000,000
RATE OF DEAD RENT ( Kyats / Sq. Km)
Funds required to conduct the prospecting, exploration, and feasibility study shall be
borne by the investor 100 % at his own risk.
Signature Bonus / Application Fee - Depends on the size of area
Performance Bank Guarantee - �
• Dead Rent according to the type of operations is shown in the table. Dead Rent is payableto the Department of Mines after acquiring respective permits. The rent levied is minimal.
Exchange Rate 1 US$ = 1350 Kyats (Aug, 2017)
27
Amending Myanmar Mines Law (2015)
Investors shall be enjoy on -
1. Selling and Purchasing ( Trading )
2. Large Scale Production - 15 Yrs to 50 Yrs
3. Medium Scale Production - Maximum 15 Yrs
4. Small Scale Production - Maximum 10 Yr
5. If Successfully Prospecting, - Shall allow to do
Exploration and Feasibility Study for Production
( Exclusive Right)
28
Foreign Investment Law (FIL)
(2nd November,2012)
Foreign Investment Rules
(31st January,2013)
EfficiencyTransparencyEnvironmentBased on
Allowing
Employment of Expatriates
Land Lease
Guarantee
Incentives & Exemptions
AdvantagesofNewForeignInvestmentLaw
ProceduresofForeignInvestment
1. Letter of Courtesy Call
2. Officials discuss onmineral commodity
3. Site visit
4. Submit Proposal30
Procedures
31
6. After getting the approval of the Ministry and the completion of all the require recommendation documents,the proposal and the Agreement Draft will send to the Myanmar Investment Commission ( MIC ) forInvestment permit.
5.TheProposalmustinclude…..
• Proposal letter address to the Union Minister, the Ministry of Mines mentions the type of
mineral and area of interest attached with Form (1) and copy to DGSE
• Proposed area location map with coordinates.
• Recommendation and endorsement of the respective Embassy in Myanmar.
• Company Registration in Myanmar.
• Company Profile and other relevant facts about the company (Form – 6/26).
• List of Board of Directors and their Passport Copy, Photo, Address, Phone No
• Financial Bank Statement
• Financial Investment
• Initial work programme
• EMP, EIA, SIA, HIA Plan
i. Proposal letter (submit in 3 weeks ahead of the trip schedule)
ii. Field trip schedule
iii. Recommendation letter from the Embassy of the concerning country in
Myanmar(including Name and Passport No)
iv. Letter of undertaken for each personnel of the group with company letter
head
v. Individual Passport copy and visa (If arrival visa, need to submit within one
week in Myanmar)
• Proposal letter submit to the Ministry of Mines and copy to DGSE• Two geologists will accompany and assist during the site visit
DOCUMENTS REQUIRE FOR SITE VISIT
33
State 30 (or) 35
Investor 70 (or) 65
Local Investor
PSC Ratio for the localinvestor could not negotiatebecause of low investmentamount and using theordinary mining technique.
ForeignInvestor Negotiable
PSC Ratio for the Foreigninvestor can negotiate basedon the following;
Investment amountType of mineralOre reserveCost of Production
PSC Ratio (Government Vs Investor)
34
ForeignInvestor Negotiable
Free EquityCarried Interest EquityLoan Financing
Equity Sharing(Government Vs Investor)
35
ForeignInvestor Negotiable
Split Ratio may be consider upon following ‐
Contribution of both parties.
Type of mineral .
Ore reserve
Cost of Production
Profit Sharing base on parties’ contribution(Government Vs Investor)
During 2015, the following various payments from companies to government in the gemstone sector applied:
Treatment
In the gems trade it is generally said that up to 90% of the world’s rubies and sapphires are heat treated, to improve colour and/or clarity.
In Myanmar, the number is thought to be lower, with estimates varying from 50 -80% of rubies and sapphires mined in Myanmar.
The majority of these stones are treated in Chanthaburi, Thailand. Many are returned to Myanmar for further cutting and polishing if necessary, and are then made into jewellery.
However, a considerable proportion stays in Thailand and sold on to international traders from there. Within the trade it is reported that ‘carriers’ smuggle the stones from Myanmar across the border into Thailand, then smuggle them back into Myanmar.
Even though Myanmar does have one or two heat treatment facilities, most gem dealers and traders prefer to take their stones to Chanthaburi, famous for its good quality heat-treating facilities and where it is perceived that the quality of the treated product will be much better than if the same treatment were carried out in Myanmar.
In the case of jade, all but the highest quality jade usually undergoes heat treatment and polymer resin impregnation to improve colour and lustre. This takes place directly at many mines but also in Hpakant and in Mandalay. It is not known what proportion of jade produced in Myanmar is treated, and little is known about this stage of the value chain for jade.
Sources also mention large numbers of jade treatment facilities in Chinese border towns. Given that much rough jade is said to go straight out of Myanmar informally, it is likely that this is the case.