Content. Why invest in Myanmar? Current Mining Activities. Mineral Potentials. Investment Procedures. Joint Venture opportunities

Transcription

1 1

2 Content Why invest in Myanmar? Current Mining Activities Mineral Potentials Investment Procedures Joint Venture opportunities Update of Myanmar Mining Law Tax Regime of Mining Sector. 2

3

4 A country that s blessed with mineral wealth. Myanmar have held emporiums and special sales three times a year for Jade, Gems and Pearls since 1964 with the pricing based on Foreign Currencies.( sell through tender or competitive bidding ). Extensive mineral occurrences and well established centuriesold mining industry. ( such as Namtu Bawdwin lead zinc Mines started since the 15th century, Mawchi tin-tungsten Mines started before 2nd world war ) The world largest Jadeite-jade deposits are found. Mogok, known as the Land of Rubies since 13rd Century. But, mineral potential remains unrealized and resources are very much underutilized. 4

5 5

6 Foreign Direct Investments ( FDI ) Sr. Enterprise/ Department Company 1. D.G.S.E Nobel Gold Limited 2. D.G.S.E 3. D.G.S.E 4. ME(1) 5. ME(1) Type of Minerals Gold and Associated minerals Zhong Chaun Int l Mining Holding De Rui Feng Investment Co., Ltd Cornerstone Resources (Myanmar)Ltd Tin- Tungsten North Mining Investment Co.,Ltd Crude Ferronickle, Ferronickle Alloy Coal Zinc Ore Location Current Status Bhamauk, Sagaing Region Exploration Magwe Region, Ngape Area Proceeding to MIC Tanintharyi Region, Dawei Exploration River Area Shan State, Production MineponTownship Chin State, TeetainTownship, Hmewtaung Track Preparing for PSC 6

7 Foreign Direct Investments ( FDI ) Sr Enterprise/ Department Type of Minerals Location Current Status ME(1) Asia Pacific Mining Ltd Lead, Zinc, Copper, Gold Kantbalu - Wuntho (Eastern Area) Sagaing Region Setgadone- Mabein Mahochaung -Namtu (Northern Area) Shan State Preparing for Exploration ME(2) Myanmar Ponepipet Co.,Ltd 72% Tin Concentrate Taninthayi Region, Dawe Township, Heinda Mine Production Ferronickel Thabeikkyin Township, Mandalay Region Hteechaik Township, Sagaing Region Developing Marble Nayputaung, Taungkoke Township, Rakhine State Developing Company ME(3) Myanmar CNMC Nickel Co.,Ltd ME(3) Simco Song Da Joint Stock Company 7

8 Ministry of Mine already issued 1763 mining permits for citizens and can classified by following: Exploration Permit 464 Nos Small Scale Mining Permit 1119 Nos Large Scale Mining Permit 134 Nos Subsistence Mining Permit 46 Nos * mainly for Tin Tungsten, Copper, Antimony, Iron, Coal, Industrial Minerals Marbles, Granite, Magnesia dioxide, Goal and lime stone.

9 03/08/13 9

10 General Category Very rich Rich Fairly rich Poor 03/08/13 Minerals Jade, Ruby, Sapphire, Limestone Copper, Lead, Zinc, Tin, Tungsten, Gold, Coal, Barite Antimony, Silver, Nickel, Gypsum, Iron Chromite, Manganese, PGM Minerals, Radioactive Minerals, Diamond, fertilizer Minerals, Fluorite, Bauxite, Mercury, Kaolin, Feldspar, Quartz, Bentonite, Mica 10

11 GEOLOGICAL MAP OF MYANMAR (2008) Area sq.miles Completed sq.miles in year /08/13 (100%) 11

12 Copper Region 03/08/13 uefuowf 12

13 Lead,Zinc, Silver Region 03/08/13 uefuowf 13

14 Tin & Tungsten Region 03/08/13 uefuowf 14

15 Gold Region 03/08/13 uefuowf 15

16 Antimony Region 03/08/13 uefuowf 16

17 Nickel & Cromite Region 03/08/13 uefuowf 17

18 Coal Region 03/08/13 uefuowf 18

19 Gems & Jade Region 03/08/13 uefuowf 19

20 MINERAL POTENTIAL OF MYANMAR Sr. Mineral Commodity 1 Columbite Tantalite 2 Coal 3 Tonnage ( Million Tons) Occurrences Deposits Total P P-3 P-4 Total Gemstones Copper Feldspar Antimony Chromite Lead Graphite Remarks

21 Sr. Mineral Occurren Depos Tot Commodity ces its al P-2 P P-4 Remark Total s 10 Tin Tungsten 11 Gypsum 13 Zircon sand 13 Limestone Dolomite Nickel Fluorite Phosphate rock Baryte Tonnage ( Mi l l iontons) Ore Concen trate

22 Sr Mineral Occurre Depos Tot Commodity nces its al Bauxite Porzolan Molybdenu m Manganese Kaolin Bentonite Glass Sand 26 Gold Platinum Mica Quartz Iron Zinc Heavy Mineral Decorative Stone 33 Tonnage (Mi l l iontons) P-2 P P-4 Remark Total s Primary Alluvial 2 (Cu..Yd.)

23 23

24 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. The investor can invest as a foreign direct investment (FDI) or joint investment with local company. 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. 24

25 Funds required to conduct the prospecting, exploration and feasibility study are borne by the investor 100% at his own risk. Myanmar practice the production sharing contract (P.S.C) system. In the production sharing types of agreement the investor shall have to contribute 100% of investment in which case the government would expect a share of the production and a production sharing will be signed with sharing ratio to be agreed upon between the parties. 25

26 26

27 Description Area Investment Signing Development Period Proposed Production China Non Ferrous Metal Corporation (CNMC) Nay Pu Taung, Taunggok Township, Taguang Taung, Thabeikkyin Rakhine State Township,Mandalay Region Viet Nam Simco Sounda US$ 18.5 million Months US$ Million Months Marble Block - 30,000 m3 Marble Slab - 100,000 m3 Ferro Nickel Tons Ni = % Per Year Royalty Production Shearing Contract Ratio (Government : Company ) 03/08/13 3% 20 : 80 (Below US$ 649) 4% 12 : : 75 (Between US$ ) : (US$ ) 30 : 70 ((Above US$ 750) 20 : 80 (US$ ) (US$ ) : (US$ ) 28 : 72 (US$ ) 32 : (Above US$ 50000)

28 Procedures for the Foreign Investment in Mining Sector 1. Foreign companies have to send letter of courtesy call officially. 2. The Union Minister or responsible officials will discuss mainly focus on mineral commodity and targeted area. 3. Site visit will be arranged if requested by the investors or company. 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 through DGSE two week ahead. 4. After the site visit, if the investor decided to invest,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. 28

29 6. Documents to include with the proposal 29

30 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. 30

31 1. Foreign investors can buy Jade and Gems in Emporium and it can be exported. 2. Foreign investors can invest in Jewellery Making Industry. But, gemstone mining are not allowed to invest. 3. All new mining proposal should contain Mine Closure Plan prepared in accordance with Myanmar Mines Law. 4. For mining projects proposal, it s necessary to address the potential environmental impact and social impact assessments that may arise due to proposed mining activities. 5. Private entrepreneurs are permitted to sell their mineral products freely in the local market and may also export them after mineral processing.

32 6. Any kind of raw ores are not allowed to export. 7. Ministry is welcoming to set up mineral processing and refining plants in Myanmar in partnership with local and foreign investors. 8. We are now inviting to produce coal and build coal power plants. ( for domestic use only, not allowed to export) 9. Before investing in Myanmar, foreign investors need to understand a number of regulatory and legal topic as well as environmental conservations. 10. Some of these are corporate registration, legislation, work permits, industrial licensing, taxation, investment promotion and the availability of infrasture and facilities. 32

33 Joint Investment Opportunities The Companies who invited for Joint Investment of Foreign Companies - 33

34 Copper(3 Companies ) Company Name Address Product Production Amount Remark Dagon Mining Co., Ltd. No.809/D, Condomini um, Kan St, Ward(10), Hlaing T/S, Yangon U Win Naing Tun Copper Ore 1530 Ayeyarwaddy Division.Lay Myat Nhar Townshop. Douhtawad y Co., Ltd. No. C-31/1, Copper Mine, Salingyi T/S, Sagaing Region U Mg Mg Copper Ore 2055 Sagine Division, Kalling Township, Shan Kalone region. Wa Minn Co., Ltd. 116, Thamine Station Rd, Qtr(2), Mayangone T/S, Yangon U Moe U Lwin Moe Copper Developme-nt Sagine Division, Period Contact Person Phone, Fax E mail

35 Tin & Tungsten ( 8 Companies) Compan y Name Address Contact Person Ngwekabar Myanmar Co., Ltd. No.80, 50th U Sai Street, G/F, Mook Pazundaung Township, Yangon A&A NRD Co., Ltd. No.72, 2nd Floor, Left corner,kyai kkasan Road, Tamwe Township, Yangon 55. Linlon Street,San -chaung Township, Yangon Phyo Kaday Min Co., Ltd. Phone, Fax E mail Vantage.yan goonmy@g mail.com Produ Productio Remark ct n Amount Tin & Tungsten 100 Investment amount is 500 Million Kyats U Min Din Tin & Tungst en mindinngo@ gmail.com 100 Investment amount is 100 Million Kyats U Kyi Taw Phyo Htet 300 Investment amount is 300 Million Kyats kyitawts@g mail.com Tin & Tungsten

36 Compan Address Contact y Person Name Phone, Fax E mail Produc Productio Remark t n Amount Myanmar Tin & Tungsten Co., Ltd. No.75, Kingdon Road, Yangon Daw Aye Aye Tin & Tungste n 1000 Investment amount is 100 Million Kyats Aung Dana Thukha Co., Ltd. No.69, Kanphyar Main Road, Myeik U Aung Myo Latt Aungdanathu kha@gmail. com Tin & Tungste n 60 Investment amount is 500 Million Kyats Golden Zenith Mining and Engineer Co., Ltd. Build(1), U Tin Soe Room(6), Myanmar Info- Tech, Hlaing Compus, Yangon Tin & Tungste n 5000 Investment amount is 1000 Million Kyats

37 Compan y Name Address Contact Person Shwe Pin Le Co., Ltd. No.B/189, 52 U Kyaw Road, Min Tun Thukha Street, Hlaing Township, Yangon Silver LightCo., Ltd. No.531, Room (305), Yetakhon Tower, Kyeemyindaing Road, Yangon U Chan Tha Phone, Fax E mail Produ Productio Remark ct n Amount Tin & Tungsten 150 Investment amount is 500 Million Kyats uchanthar@ gmail. com Tin & Tungsten 100 Investment amount is 20,000 Lakh Kyats

38 Lead & Zinc ( 20 Companies) Compan y Name Ruby Garden Mining Co., Ltd. Myanmar National Treasure Mining Co., Ltd. Address Shweli Yadanar Oil Mill, Ward (12), Layyin kwin Street, Lashio Township, Shan North No.12, Room(3-A), Thirimigalar Street, Myanigone North Ward, Sanchaung Township, Yangon Contact Person Phone, Fax E mail Produ Productio Remark ct n Amount U Than Win Zinc Metal Ore U Lin Zaw Latt Zinc Metal Ore 230

39 Compan y Name Address Contact Person Phone, Fax E mail Mayflower Mining Enterprise Ltd. No.601, Yadana Condomiu m, 9 mile, Pyay Road, Mayangone Township, Yangon U Moses (Director) Produ ct Zinc Metal Ore Producti on Amount Remark

40 Compan y Name Address Contact Person Aye Thitsar Industry Ltd. No.161, 59th Street, Zamyinzwe Qtr, Pyi Gyi Tagon Township, Mandalay Yadana Tun Mining Co., Ltd. No.459/469 U Tun, D-8, Lower Sein Pazundaun g Road, Pazundaun g Township, Yangon Ingyin Shwe Sin Co., Ltd. Bld. (171/181), Room(2/3), 28th Street, Upper, Pabedan Township, Yangon Daw Aye Aye Soe U Kyaw Naing Phone, Fax E mail Produ ct Producti on Amount Lead Metal Ore Lead Metal Ore Lead Metal Ore 7610 Remark

41 Compan y Name Address Contact Person Phone, Fax E mail Produ ct Producti on Amount Shwe Li Great Mining Co., Ltd. No.60, Homon Block, Muse, Shan State U Kyaw Sein Lead Metal Ore 6105 San Linn Co., Ltd. No.837, Room(15/27), Shwebonth ar Street, Pabedan Township, Yangon U Myint Oo Lead Metal Ore 1505 Thein Than Co., Ltd. No.377/379, Bosunpat Street, Pabedan Township, Yangon U Myo Myint Lead Metal Ore 5964 Remark

42 Company Name Address Myanma Aung Myay Manufactu ring Co., Ltd. No.(SA/14), 5th Street, Chanmyath ayar Qtr, Pyigyitagon Township, Mandalay Contact Person U Hyu Houh Kyon Phone, Fax E mail Product Production Remark Amount Lead Metal Ore 890

43 Compan y Name Address Contact Person Phone, Fax E mail Top Ten Star Productio n Co., Ltd. National Swimming Pool Compound, U Wisara Road, Dagon Township, Mandalay U Aye Tun Lead Shwe 8056 Concen kolympic@ trate myanmar.co m.mm Linn Pyae Mining Co., Ltd. No.35(B), Ou Yin Street, New University Avenue Road, Bahan Township, Yangon U Kyaw Ko Ko Produ ct Lead Concen trate Producti on Amount Remark

44 Compan y Name Address Su Myat Tun Mining Co., Ltd. No.117, 1st Floor, 92nd Street, Kan Shae Qtr, Mingalar Taung Nyunt Township, Yangon No.83, Thitsar Lane, 63rd Street, Between(32n Star Ray Mining Co., Ltd. d&33rd)street, Pyi Gyi Myatshin Ward, Chan Aye Thar Zan Township, Mandalay Contact Person Phone, Fax E mail Produ ct Producti on Amount U Aung Moe Aye apd@myan mar.com.m m LeadZinc Ore 1295 U Haung Khang LeadZinc Ore 340 Remark

45 Compan y Name Address Prince Manufactu ring Co., Ltd. No.No.7, Yehtwet Oo Street, Forestry Block, Taunggyi Pan Khum No.417, Ward(8), Mining Theinni Co., Ltd. Street, Lashio Township, Contact Person Phone, Fax E mail Produ ct Producti on Amount U Aung LeadZinc Ore 560 U T Jhun Myat LeadZinc Ore 1900 Remark

46 Compan y Name Address Myay Nagar Mining Co., Ltd. No.1, Qtr(1), Science Road, Lashio Township, Shan State Contact Person U Kyaw Mying Phone, Fax E mail Produ ct Lead Carbon ate & Lead Zinc Ore Producti on Amount Remark

47 Compan y Name Address Contact Person Phone, Fax E mail Produ ct Shwe Sapar Mining Co., Ltd. No.(Ma10/41), 64th road, Bet. Cherry St& Padauk St, Myothit, Mandalay U Shin Phu Lead, Zinc & Copper Khine Si Hein Mining Co., Ltd. No.11, Zabu Mandai St, Bo Kan Nyunt Qtr, Thin Gan Gynn T/S, Yangon Daw Tin Tin Win Producti on Amount Lead 1115 Zinc Associate Mineral s Remark

48 Compan y Name Address Pyi Tan Yadanar Mining Co., Ltd. No.40, Room(1), Yankin Lane (2),Qtr(1), Yankin T/S, Yangon Contact Person U Naing Aung Phone, Fax E mail Produ ct Lead & Copper Producti on Amount 480 Remark

49 Gold (only 1 Company) Company Name Minwun Taung Mining Co., Ltd. Address No.90, Thihathu Street, Ywahtaung Qtr, Sagaing Contact Person U Saw Ko Phone, Fax E mail Product Gold Productio n Amount 1.50 Viss/year Remark Investmen t amount is 50 Million Kyats

50 Coal ( 6 Companies) Company Name Addres s Contact Person Young Investment Group Industry Co., Ltd. No.647(A) Pyi Road, Kamayut Township, Yangon Daw Nan Saw Htwe Coal 25,000 Investme nt amount is 150 Million Kyats Htun Kyawe Paw Industrial Co., Ltd. No.4, Hantha Wady Road, Myo Thit Ward, Than Lyin, Yangon No.11,Maggin Street, 14 Ward, KyaukKine Yankin Township, U Aung Kyaing Coal 12,000 Investme nt amount is 19 Million Kyats U Aung Aung Zaw Coal 7,500 Investme nt amount is 15 Million Kyats 24 Hour Mining and Industry Co., Ltd. Phone, Fax E mail Produ ct Producti on Amount Remark

51 Company Address Name Shwe Ohn Pwint Co., Ltd. Tun Thwin Mining Co., Ltd. Shwe Taung Development Co., Ltd. No.8, Shwe Pyi Soe Street, Regi on (6), Nau ng Hkio, Shan North No.23/B-2, Thukha Waddy Street, Yankin Township, Yangon Contact Person Phone, Fax E mail Produ ct Producti on Amount Remark U Kyaw Aye Ko Coal 7,200 Investme nt amount is 9 Million Kyats U Thein Tun Coal 20,000 Investme nt amount is 39 Million Kyats std@htct.co m.mm Coal 150,000 Investme nt amount is 500 Million Kyats & No.584, 5th U Kyaw Floor, Naing Soe Corn -er of 7th Street&Stran d Road, Lanmadaw

52 Iron (6 Companies) Company Address Name Contact Person Phone, Fax E mail Produc t Producti on Amount Remark For Steel Mill Steel King Industry Co., Ltd. No.296(B) Ayer Wun Road, Thaketa Township, Yangon U Kyaw Kyaw Oo Iron Ore 2,000 MT/day San Lin International Export&Im port Co., Ltd. Bld.387, Room(15/27), Shwe Bon Tha St, PabedonT/ S, Yangon U Myint Oo Iron Ore Daw Ja Bu Iron Ore Bu.blfygu@ mpt.mail.net.mm 6000 No.53/55, Jade King Mining Co., New University Ltd. Avenue Rd, Bahan T/S, Yangon

53 Compan y Name Address Contact Person Phone, Fax E mail Produ ct Electrum Mining Co., Ltd. No.403, Mindama Condo, Mayangone T/S,Yangon Young Investmen t Group Industry Co., Ltd. No.647-A, U Win Pyay Rd, Lwin Kamayut Myint T/S, Yangon Iron Ore Aung Kyo Kyar Co., Ltd. Bld.(Da 2/18) 60th Rd, Bet 40th & 41th, Maharmyai ng Qtr, Mandalay U Win Lwin Myint Iron Ore U Win Iron Myint Law Ore U Tin Lin mms@htoog roup.com Producti on Amount Remark

54 Lime stone (2 Companies) Compan y Name Address Contact Person Phone, Fax E mail Produc Productio Remark t n Amount Steel King Industry Co., Ltd. No.296(B) Ayer Wun Road, Thaketa Township, Yangon U Kyaw Kyaw Oo Lime Stone 6,000 MT/day For Cement Plant Young Investmen t Group Industry Co., Ltd. No.647(A) Pyi Road, Kamayut Township, Yangon U Win Lwin Myint Lime Stone 2,000 MT/day For Cement Plant

55 Antimony (12 Companies) Company Address Name Contact Person Phone, Fax E mail Product Production Amount Shan South, U Htun KaYah PunKunn Golden Kyaw T/S Gate Mining Co., Ltd Antim-ony 240 Mineral Shan East, Eastern Mat-mun Highland T/S Mineral Exploration and Mining Co., Ltd Antim-ony 150 Mineral Certain Mineral Exploration Mining Co., Ltd. 03/08/13 Daw Yin Swe No.13-B, U Mg Mg Aung PanHnin Pindaya Rd, Yi Win Awyaw Qtr, Pindaya T/S, Shan South Rem ark Antim-ony Mineral Fighterjeck Fgmail. com 55

56 Compan y Name Address KaYah Golden Gate Mining Co., Ltd. No.428, U Kun Li Rd, Naung Yar(A) Qtr, Loikaw T/S Hawk Eye Mining Co., Ltd. Thu Ya Kan Chun Co., Ltd. 03/08/13 Contact Person Phone, Fax E mail Produ ct Producti on Amount U Htun Kyaw Antimony Mineral 240 Kayah State, Fruso T/S U Myint Mg Mg Director Hawk Eye.Myanm ar.gmail.co m Antimony Mineral 615 Kayah State, Loikaw T/S U Thu Ya Tun info@myan mar-sb.com mar-sb.com Antimony Mineral 420 Remark 56

57 Company Address Name Thu Za Na Pwint Mining Co., Ltd. Contact Person Product Product Remark ion Amount Antimony Mineral 750 Thein Than Kayin U Myo State, Mining Myint Hlaingbwe Co., Ltd Antimony Mineral 1445 Htay Family General Manufacturing Co., Ltd Antimony Mineral Development Period Kayin State, KyainSeikgyi T/S U Win Hlaing Phone, Fax E mail T/S 03/08/13 Kayin State, KyainSeikgyi T/S U Hla Htay 57

58 Company Address Name Thuwanna Myay Si Mining Co., Ltd. Kayin State, KyainSeikgyi T/S No.48, Zenith Mining Co., Thamine Baran Rd, Ltd. Yangon Contact Person Phone, Fax E mail Daw Than Nyo Antimony Mineral 300 U Kin Maw Director Antimony Mineral Antimony 2000 Room(201), Dr. Tun Tha Byu Mining Co., Bld.(C), Min Latt Tatkatho Ltd. Product Production Amount Re mark Yeikmon Housing, New University Avenue, Yangon 03/08/13 58

59 59

60 All naturally occurring mineral deposits found either on or under the soil of any land in the continental shelf are deemed to be owned by the State. Recently, MIC (Myanmar Investment Commission) promulgated the new Myanmar Investment Law. The Union of Myanmar Mines Law was promulgated in September 1994 and Rules relating to the law followed in December Already enacted the Environmental Laws. ( promulgated in March 2012 ). Related rules will come out soon. The draft of amending the Myanmar Mines Law ( with the advice of experts and publics ) will replaced soon. (i) To encourage for investments more easily, trustfully and comprehensive (ii) To facilitate the environmental conservation and Green Mining. (iii) More detail for Mine safety. 60

61 Description Existing Mining permit, Time and Area Future Mining Permit, Time and Area Mineral Prospecting Permit -A period not exceeding 1 year. -The land area not exceed 4200 Km2. -Extension period not exceeding 12 months. Land Area may Change. Mineral Exploration Permit and Feasibility Study -A period not exceeding 3 years. -The land area not exceed 3150 Km2. -Extension permit one year at a time. -Extension may normally be two occasion only Land Area may Change. 61

62 Large Sclae Mineral Production Permit Medium Scale Mineral Production Permit Small Sclae Mineral Production Permit -A period not exceeding 25 years shall be permitted. -However, if the estimated life of the ore deposit proposed to be mined is less than 25 years only such period shall be determined. -The land area is depend on investment amount and ore deposit. -Extension period not exceeding 5 years at a time.( may get 3 times to extend ) Not Include in Previous Law -A period not more than 5 years. -Designated land area which shall not exceed 1Km2 -Extension period not exceeding one year on four occasions. -A period not exceeding 25 years shall be permitted. -The land area is depend on investment amount and ore deposit. -Extension period not exceeding 5 years at a time. ( may get 3 times to extend ) -Not more than 10 Year -Designated land area which shall not exceed 1Km2 -Extension period not exceeding one year on four occasions. -A period not more than 5 years. -Designated land area which shall not exceed 50 acres -Extension period not exceeding one year on four occasions. 62

63 Subsistence Mineral Production Permit -A period not exceeding 1 year. -The land area not exceed 1 Km2. Intgrated Permit Mineral Prospecting, Mineral Exploration and Large Scale Mineral Production or Small Scale Mineral Production Permit. Mineral Trading Permit Not Include in Previous Law Mineral Processing Permit Not Include in Previous Law Remain Un change Remain Un change *In detail after getting the approval ( including Transporting, Storage and Trading for produced Minerals ) *In detail after getting the approval

64 Description In 1996 Mining Rule Future Mining Rule Small Scale 20 Acres and below 5 Acres and below Medium Scale Not Mention Not more 50 Acres Large Scale -No area limit -Depend upon the size of Ore deposits and production Time 50Acres and above 64

65 Tax Regime in the Mineral Sector in Myanmar 03/08/13 65

66 Dead Rent (Kyats) for 1 Km2 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 2 Metallic Mineral 100, , , , ,000 1,200,000 1,600,000 3 Precious Metallic Mineral 200, , , ,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 market. 03/08/13 66

67 Dead Rent (Kyats) for 1 Km2 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 market. 03/08/13 67

68 Royalty According to Myanmar Mine Law for metallic minerals is 3 to 4 % for precious metallic minerals 4 to 5 %. Industrial Minerals 1 to 3% Royalty is levied on value of mineral sold. It is a sale based royalty and not a production based royalty. Royalty may be exempted or relief may be given by the Ministry of Mines. 03/08/13 68

69 MINISTRY S EXPECTATION Promote optimal utilization of Myanmar valuable mineral resources for its production of refined products, through the contribution of foreign investment with advanced technologies. 69

70 Activities to Promote Mining Sector 70

71 Mr. Kyaw Thet Director Department of Mines Ministry of Mines Office Building No. ( 19 ), Nay Pyi Taw, Myanmar. Tel Fax Website : : :kthet2011@gmail.com : 71

72 72