Due to the refugee crisis in Rakhine over the past two years, some western countries have been hesitant to invest in the country. To address this, the government launched a 20-year Myanmar Investment Promotion Plan (MIPP) with a “Look East Policy”. However, investments under the plan have not met up with expectations.

Currently, investments from Asian countries come mainly from China, Singapore, Thailand, South Korea, and Hong Kong. Western investments have been minimal and mainly in oil and gas and mining.

The current situation makes 2020 a good year to boost foreign investments into the country’s resource sectors, said U Thaung Tun, Union Minister of Investments and Foreign Economic Relations.

“Based on the proposals we have received, we hope to achieve a potential record-high next year. With proper planning, our country has the possibility to see a massive influx of foreign investment,” U Thaung Tun said.

The granting of permits for mining blocks had been suspended since July 2016, but after enacting the 2018 Myanmar Mining Rules, the Ministry of Resources and Environmental Conservation began accepting applications again. Foreign firms have since submitted applications.

Under the new regulations, large blocks will cover up to 500,000 acres (about 202,000 hectares). Foreign firms can work large blocks while local firms can work in all kinds of blocks. Eight foreign firms applied to work in large blocks and in January 2020, two Australian firms will be granted licences to explore and inspect as part of conducting feasibility studies, said U Atha Hlaing, director of Department of Geology and Mines.

The licences for medium-scale mining will also be granted to about 20 local companies in 2020. Part of the requirements in granting the licences are that the companies must have environmental management plans in place before the governments approves the applications, U Atha Hlaing said.

“We expect to grant licences for two foreign companies and 20 local ones in 2020, and we will keep going from there,” said U Atha Hlaing. 

Wuntho Co of Australia will receive a licence for to explore some 775.05square kilometers  (more than 180,000 acres) for copper in Bhanmauk, Sagaing Region. 

Similarly, Myanmar First Oriental will explore 443.45sq km of land in Kyauk Kyi and Shwe Kyin townships, Bago Region.

“When it comes to finding metals, it’s hard to find one even if we go searching for ten. Despite a large area explored, the possible target area can be very small. As the mineral deposits might not be what was being looked for, companies could abandon it without investing enough in it. However, this has already been considered, and more exploration is better,” he said.

The Department of Geological Survey and Mineral Exploration said that there will not be any problems at the level of surveys and feasibility studes even if more area is allocated, and it would not affect the interests of the country.

Although both Australian companies have offered to invest US$3 million each for the survey and feasibility studies, it might well entail more cost due to the nature of the business.

The 20 local companies are set to conduct surveys and feasibility studies for coal mining and other minerals. – Translated

Source: https://www.mmtimes.com/news/government-seeks-get-ball-rolling-mining-investments.html