Transcript Chin Mai Univ 9.9.2014

Republic of the Union of Myanmar
Ministry of Mines
Current Status of Mining Sector
in Myanmar
Presented
by
Kyaw Thet
Director
Department of Mines
September 9,2014
1
Outline of Presentation
 Brief Introduction to Mining Sector of Myanmar
 Policies and Legislations
 Investment Information of Mining Sector
 PSC Ratio (Government Vs Investor)
2
Union Minister
Dr. Myint Aung
Deputy Union Minister
U Than Tun Aung
Dept. Of Mines
DGSE
U Win Htein
Dr. Ye Myint Swe
U Kyaw San
(Director General)
(Director General)
(Managing Director)
Mineral
Policy
formulation,
Regulatory
measures
Royalty
Collection
Geological
Geotechnical
Analytical
Laboratory
ME 1
Lead,
Zinc,
Silver,
Copper,
Iron,
Nickel,
Cadmium,
Cobalt,
Tellurium,
Mercury ,
Aluminum,
Arsenic,
ME 2
U Than Daing
Acting Managing
Director
ME 3
U Htay Aung
Managing Director
Gold
Tin
Tungsten
Rare Earth
Titanium
Platinum
Molybdenum
Radio Active
Mineral
Heavy Mineral
MGE
U Aung Nyunt
Thein
MPE
U Seing Lwin
Managing Director
Managing Director
Coal
Lime stone
Industrial
Mineral
Magnesium
Asbestos,
Graphite,
Glass Sand,
Barite
Manganese
dioxide
Decoration
Stones
Gems, Jade
& Jewellery
MSMCE
U Aung Myo
Thu
General Manager
Pearl
Salt
By-product
from
Brine
3
Introduction to Myanmar’s Mining Sector
© Photo: Soe Zeya Tun/Reuters
4
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.
5
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.
6
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
Large Scale Mining Permit
3.
Myanmar CNMC Nickel Co.,Ltd
China
Ferronickel
Large Scale Mining Permit
4.
Simco Song Da Joint Stock Co.,
Vietnam
Marble
Large Scale Mining Permit
5.
Asia Pacific Mining Ltd.
China
Lead, Zinc , Copper, Gold
Exploration Permit
6.
Nobel Gold Limited
Russia
Gold and Associated Minerals
Exploration Permit
7.
North Mining Investment Co., Ltd.
China
Ferronickel
Feasibility Study
8.
De Rui Feng Investment Co., Ltd.
China
Tin-Tungsten
Exploration Permit
9.
Myanmar Yangtze Copper Co., Ltd.
China
Copper
Large Scale Mining Permit
10.
Myanmar Wanbao Copper Co., Ltd.
China
Copper
Large Scale Mining Permit
11.
Daewoo Precious Resources Co.Ltd
Korea
Copper, Gold
12.
GPS Joint Venture Co.,Ltd
China
Lead, Zinc
13.
Sichuan Chuandi( Myanmar) Mining Co.Ltd
China
Copper and associated Mineral
14.
Royal Light Ron Ann Co., Ltd
China
Iron
15.
Geo Pro Mining Sea Ltd
Russia
Antimony and Associated Minerals
Exploration Permit
Large Scale Mining Permit
Exploration and F . S
Exploration and F . S
Prospecting, Exploration &
F.S
Mining Permits Issued to the Investors
at the end of August 2014
 Issued 2043 mining permits;





Exploration Permit
Small Scale Mining Permit
Large Scale Mining Permit
Subsistence Mining Permit
Small Scale Prospecting
504 Nos
- 1286 Nos
- 138 Nos
48 Nos
67 Nos.
 Mainly for Gold, Tin, Tungsten, Copper, Antimony, Iron, Coal ,
Industrial Minerals, Marbles, Granite , Magnesium dioxide and lime
stone.
8
Policies and Legislation
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© Photo: Bencito the Traveller
Mining Laws and Relating Laws
Myanmar Mining Law (1994)
Foreign Investment Law
(2012)
Myanmar Gems Law (1995)
Myanmar Insurance
Law (1993)
Myanmar Pearl Law (1998)
State owned Economic
Enterprise Law
Myanmar Mine Safety Law
Protection of Wild Life and Wild
Plants and Conservation of
Natural Areas Law (1994)
(Upcoming)
Myanmar Explosive Law
(Upcoming)
Environmental Conservation
Law (2012)
Cultural Heritage Law (1998)
10
Issued Public Notice
Environmental Conservation for Four Main Rivers
Notification No. 26/2012 (Dated on 28.3.2012)
 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.
11
Update Investment Policy on Extractive Industries
Adopted Social Responsible Investment (SRI) Policy.
Since 2nd July, 2014 became a candidate country of EITI.
Trying to become a Compliant Country of EITI.
12
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.
13
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.
14
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.
15
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.
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Investment Information
17
Advantages of New Foreign Investment Law
Foreign Investment Law (FIL)
Based on
 Efficiency
 Transparency
 Environment
(2nd November, 2012)
 Employment of
Expatriates
Foreign Investment Rules
(31st January, 2013)
Allowing
 Land Lease
 Guarantee
 Incentives &
Exemptions
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Forms of Investment
1
100 %
Foreign Owned
2
Joint Venture
3
Any system
included in the
Mutually agreed
contract
A Citizen or
Concerned
Government
Organization
The party which
mention in the
contract.
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Procedures of Foreign Investment
in Mining Sector of Myanmar
4
3
2
Site
visit
1
Letter of
Courtesy
Call
Submit
Proposal
Officials
discuss on
mineral
commodity
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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
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.
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PSC Ratio
(Government Vs Investor)
© dreamstime
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PSC Ratio
(Government Vs Investor)
Local Investor
State
30 (or) 35
Investor
70 (or) 65
Foreign
Investor
Negotiable
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
23
PSC Ratio
(Government Vs Investor)
100%
production
deduct
Royalty
deduct
Commercial Tax &
Income Tax
deduct
Split between the
investor and the State
24
Fiscal Regime in Mining Sector
25
Dead Rent for one Square Km in Kyats
Sr.
Type
of Minerals
Prospecting period
Exploration Period
1st Yr
2nd Yr
1st Yr
2nd Yr
3rd Yr
4th Yr
5th Yr
1
Industrial
Mineral (or)
Stone
50,000
100,000
100,000
200,000
400,000
600,000
800,000
2
Metallic
Mineral
100,000
200,000
200,000
400,000
800,000
1,200,000
1,600,000
3
Precious
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 Department
2. Exchange rate subject to daily exchange rate.
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Dead Rent for one Square Km in Kyats
Sr.
Type
of Minerals
Feasibility Study
period
Developing Period
Production
Period
1st Yr
2nd Yr
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
2,000,000
2
Metallic
Mineral
1,600,000
1,600,000
1,800,000
2,100,000
2,400,000
3,000,000
3
Precious
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 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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Expectation
Promote the utilization of
Myanmar valuable mineral
resources for the production to
refined products through the
contribution
of
foreign
investment
with
advanced
technologies.
© Lorn Pearson Trains
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Contact Information
•
•
•
•
•
•
•
•
Kyaw Thet, Mr
Director
Department of Mines
Ministry of Mines
Office Building No. ( 19 ), Nay Pyi Taw, Myanmar.
Tel
:
+95-67-409378
Fax
:
+95-67-409376
E-mail :
[email protected]
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