Local and foreign investments in Myanmar’s mining blocks will be permitted under the new Myanmar Mining Rule enacted February 2018, according to the Ministry of Natural Resources and Environmental Conservation (MONREC)
Mining activities had been suspended in 2016 so that the ministry could assess the industry’s compliance with environmental rules and regulations.
“We have since inspected up to 519 mining sites and made many reforms. We believe the mining sector is now ready to contribute to our nation’s development,” U Khin Latt Kyi, director general of the Mining Department under the MONREC, said during a press conference in Nay Pyi Taw on July 13.
“The mining sector is now open to local and foreign investors after two years,” he told The Myanmar Times. Applications made individually or online will be accepted starting from July 26.
Foreign companies will now be able to invest in large-scale sites of more than 500,000 acres as well as medium scale sites of up to 247.1 acres.
Already, Australia mining company PanAust was given permission to conduct feasibility studies at a large-scale block in Wuntho region on July 5. There are currently seven foreign companies including from Japan, Australia and China now applying for such a permit.
“However, we can’t give permission for foreign investments directly. We have to submit these applications to the government, which will grant permission. Wuntho has been contracted for the first time. I think at least six or seven investments will came to exist in next three or four months,” said U Khin Lat Kyi, director general at the Department of Metal Mines.
The MONREC will also allow investments in small-scale mining sites for gold and other precious metals of up to 4 acres, sites of up to 10 acres for other minerals and sites for raw industrial materials and precious stones of up to 20 acres.
Permission to invest in large and medium-scale work sites for restricted minerals must be sought at the Union Minister’s Office, while permission to invest in small-scale sites for restricted decorative stones must be applied for at the head office of the Department of Mines, said U Khin Latt Kyi.
Under the new Mining Rule, regional and state government will also be given the authority to oversee small-scale mining blocks. “Giving power over the smaller blocks to the regional and state governments is better because they can supervise them closely, he added.
U Khin Latt Kyi, who is also head of inspection, added that people from 11 sub-offices of the Department of Mines will cooperate with the regional and state governments to inspect older mines and grant permission to mine at new blocks in accordance with the new law.
“What is most important for the mining sector is transparency and adherence to tax regulations. In addition, miner will have to obey rules and regulations pertaining to the environment and contribute to the communities impacted,” saidU Khin Maung Han, chairman of Myanmar Federation of Mining Association.
He added that “the new Myanmar Mining Rule will draw more foreign direct investments to the country.
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