Myanmar Mines Law And Rules: Update

Following the passing of the amendments to the Myanmar Mines Law of 1994 through the enactment of Law No. 72/2015 on 24 December 2015 (the "Mines Law Amendments"), the Ministry of Natural Resources and Environmental Conservation1 (the "MNREC") passed the much anticipated Myanmar Mines Rules under Notification No. 13/2018 dated 13 February 2018 (the "Mines Rules"), repealing the previous mines rules passed in 1996.

Mines Law Amendments: A recap

As noted in our Myanmar alert on the Mines Law Amendments, key changes brought by the Mines Law Amendments include:

Increasing the maximum production permit period, for large scale production projects only, to 50 years; Giving exploration permit holders a clear right to production permits; Allowing joint ventures, between foreign investors and local investors, in the case of small and medium scale production projects upgraded to become large scale production projects; Specifying the criteria for determining size of individual production permit areas; and Providing a guaranteed right to production permit for those who have successfully carried out prospecting and exploration and completed a feasibility study. Clarifications provided by the Mines Rules

The Mines Rules in providing further guidance and in addressing certain regulatory concerns are important additions for the creation of the necessary legal and regulatory environment conducive to investment in the mining industry. Despite the publication of the Mines Rules, there remains concerns and uncertainty, which will need to be borne in mind. Some highlights (non-exhaustive) of the Mines Rules are:

Procedures for application of relevant permits

The Mines Rules set out certain procedural requirements for the application for various mining or mining-related permits, including: (1) prospecting permits; (2) exploration permits; (3) feasibility study permits; (4) large scale production permits; (5) medium scale production permits; (6) small scale production permits; (7) subsistence scale production permits; (8) mineral treatment permits; (9) mineral trading permits; and (10) integrated operations permits (i.e. if more than one of the regulated activities related to the foregoing permits are to be carried out). In a sensible move to streamline the process, the Mines Rules provide that production permit holders will be able to conduct mineral treatment and mineral trading, without requiring specific permits.

In relation to permitting, there is, however, a...