Mining in the Asia Pacific - A Legal Overview - Myanmar (Burma)

MYANMAR (BURMA)

PROFILE

Myanmar is a world leader in the production of rare stones. The country produces more than 90% of the world's rubies and fine quality jade. Myanmar has also emerged as a significant producer of oil and gas. Myanmar is a member of the Association of Southeast Asian Nations (ASEAN). MINING INDUSTRY

Ruby production is particularly prevalent in the Sagyin, Thabeitkyin, Naniazeik, Mogok regions and most recently in Möng Hsu. Myanmar produced over 21,000 barrels of oil daily in 2010 (ranked 75th in the world). However, no oil is exported. The country has proved reserves of 50 million barrels of crude oil (ranked 79th in the world). Myanmar exported 8.29 billion cubic metres of natural gas in 2009 (ranked 23rd in the world) with proved reserves of 283.2 billion cubic metres of natural gas (ranked 40th in the world). MINING LAWS

The Myanmar Mines Law 1994 implements a permit system in granting a person or organisation the right to produce minerals, stones, gemstones and metallic minerals. If required, compulsory acquisition of land is permitted if it is "in the interests of the state". FOREIGN INVESTMENT

Foreign investment is encouraged; however the viability of such investment is contingent on the severity and scope of economic sanctions. Under the Union of Myanmar Foreign Investment Law, sectors eligible for investment include manufacturing, oil and gas exploration and development, mining (except gold and precious stones), jewellery production and agriculture. In the 2010/2011 financial year, foreign direct investment soared from US$302 million to US$20 billion, predominantly from China, Hong Kong and Thailand. Approximately half of this money was invested into the natural gas and oil sector (particularly with respect to the Shwe Project's gas pipeline to China). FOREIGN OWNERSHIP

Private freehold land ownership is not available. TAX

Royalties: vary between gemstones (5% to 7%), gold and other metallic minerals (4% to 5%) and industrial...