Mining Activity and Investment Opportunity in Myanmar.pptx

1. Introduction
2. Mineral Occurrences in Myanmar
3. Current Mining Activity in Myanmar
4. Investment Information
I-Procedure for Foreign Investment in Mining Sector
II-Tex Regime and Royalty in Mining Sector
III-Category of Mining Permits
5.Why You Investment in Mining Sector in Myanmar
6.Conclusion

1. Minex.asia Mining Activity and Investment Opportunity in M yanmar Kyaw Than Win August 2015

2. Content 1. Introduction 2. Mineral Occurrences in Myanmar 3. Current Mining Activity in Myanmar 4. Investment Information I-Procedure for Foreign Investment in Mining Sector II-Tex Regime and Royalty in Mining Sector III-Category of Mining Permits 5.Why You Investment in Mining Sector in Myanmar 6.Conclusion

3. Introduction

4. Mineral Resources in Myanmar Myanmar has extensive mineral resources and a well established centuries-old mining industry. The main resources are petroleum, gas, coal, iron, tin, tungsten, antimony, lead, zinc, copper, silver, gold, jade and gemstones. Clay, limestone, dolomite, barite, fluorite, gypsum, rock salt, feldspar, quartz, glass sand and etc. are the main industry mineral and raw mineral.

5. Lies btw 09˚ 32’N and 28˚ 31’N( lat ), and 92˚ 10’ E and 101˚ 11’ E(long) The greatest N-S extent is about 2051 km The greatest E-W extent is about 936 km Total length of country border is 4000 km Covering area of 676580 km2 N&NS border by China 2204 km SE border by Thailand 2107 km E border by Laos 238 km W border by Bangladesh 271 km N border by India 1338 km Geographic Background of Myanmar

6. Physiographic and major tectonic feature of Myanmar

7. Geological Map of Myanmar 2011 Geology of Myanmar Physiographic feature of Myanmar

8. Minerals Occurrence in Myanmar

9. Mineral Deposit of Myanmar Million Tons Iron ore 359.24 Barite 87.32 Coal 490.00 Lead & Zinc Ore 13.80 Chromite Ore 1.03 Nickel Ore 162.00 Limestone 6560.893 Antimony Ore 2.27 Gold Ore 12.86 Tin – Tungsten 40.00 Copper Ore 1587.80 Platinum Group 21.47 Distribution of major deposits in Myanmar

10. Distribution of Tin & Tungsten Deposit Mawchi Primary 0.32% Padaukchaung Primary Heinze (Placer) Kanbauk (Primary/Placer) Bokpuin (Placer) 0.56% Hermyingyi (Primary) 0.37% Kyaukme Taung , Pagaaye (Placer) 0.283% Theindaw (Placer) 0.36 lb /yd3 Manawlon (Placer ) Tin-Tungsten Occurrence = 480 Heinda Mine (Placer)

11. Tin & Tungsten Deposit in Myanmar -one of the most important mineral resources in Myanmar -tin & tungsten mineralization is related to granitoid intrusions. -about 480 of occurrences, along the Tanintharyi Region and western part of the Shan Plateau . -occurs along the granitic belt in SE Asia peninsula (distributed over more than 1200 Km in Myanmar with more prominent in tungsten toward the north) - the ratio of tin & tungsten are varies locally. -Most of the cassiterite is mined from placers while tungsten is mined from hard rock veins.

12. Distribution of Copper Deposit Sinbo-Nankesan Cu – 3 to 4 % 0.21 million (Possible) Bawdwin Cu – 0.87% 2.5 million (Possible) Panmakut Manna Cu – 4% 0.001 million (Possible) Panpwe Kyauk Taung Cu – 4% 0.001 million (Possible) Kweeight Cu – 4% 0.001 million (Possible) Shangalon Cu – 0.23% 9 million(Possible) Kyesin Taung Cu – 0.77% 66.5 million ( Possibld ) Sable Taung & S of SB Cu – 0.7 to 1.01 % 27.86 million (Possible) Lrtpadaung Cu – 0.4 % 1478 million (Possible) Sable Taung ( Kyaukse ) Cu – 1.51 % 0.88 million (Possible) Laymyetna Cu – 0.8 to 2% 0.28 million (Possible)

13. Distribution of Lead, Zinc, Silver Panwa ( Kachin ) Pb,Zn -1.06% 12.5 million(Possible) Bawdwin (Shan North) Pb,Zn - 5% 12.8 million(Probable) Phaleng (Shan North) Zn 15.84 0.01 million (Possible) Yadanatheingi (Shan North) Pb,Zn - 4% 0.1 million (probable) Paungdaw (Mandalay) Pb - 4.7% 0.09 million(Probable) Mawhki ( Kayin ) Zn – 0.3% 0.332 million (Possible) Bawsaing (Shan North) Pb,Zn – 6% 0.0075 million (Probable) Lon Chein (Shan South) Zn - 36% 0.234 million (Possible)

14. Lead-Zinc-Silver Deposit in Myanmar more than 100 occurrences of Pb -Zn-Ag mineralization in the Eastern Highland Province Mineralization occurs as five different styles Volcanogenic massive sulphites types(VMS) at Bawdwin mine Massissipi valley type deposit at Bawsaing Cavity filling vein –type in Yadanatheingi In vein and skarn type near the contact between granitic rock and marble at Phaungdaw mine Zinc carbonate deposit (secondary deposit)at Long Hken

15. Distribution of Coal Deposit

16. Distribution of Antimony Deposit Nahok , Shan Mong Inn, Shan Liharmyar , Hopone Peinchit , Kayah Konesut , kayah Lebyin , Mandaay Kadaik , Mon Thabyu , Kayin Netsan , Mon Kadaik , Mon

17. Antimony Deposit in Myanmar More than 140 occurrences of stibnite and other Sb bearing minerals are known in Myanmar. Occurrence in Kayah State, Kayin State, Mon State,Shan State(S) The majority of antimony mineralization occurs in the late Paleozoic carbonates (Triassic to Permian in age) and also in the late Pleozoic clastic sediments of the Mergui series. Generally found in veins or lenses or both. Must be successively upgraded for the required concentation or grade. So far, the best known antimony deposit are at Thabyu , Kayin State. The ore is reported to be hight grade.

18. Distribution of Iron Deposit Kantawyan ( Kachin ) Fe – 49 to 69% 2.354 million (Possible) Taungkatone Taung ( kachin ) Fe – 37 to 45% 2.3 million (Possible) Taung Nyo Taung ( Kachin ) Fe – 40.67% 18.9 million (Potential) Haemaung ( Kachin ) Fe – 45.93% 1.1 million (Potential) Mongkanwe (Shan East) Fe – 39 to 66% 21.5 million(Potential) Pinpet (Shan South) Fe – 56.4% ( He,Lim ) 80 million (Probable) Maputae Island ( Tanitharyi ) Fe – 42% 1 million (Probable) Lamaug ( Kachin ) Fe – 51.54% 8.9 million (Probable) Kathaing Taung ( Kachin ) Fe – 50.56% 223 million (Probable) Sanleik ( Kachin ) Lim 10 million (Potential) Kyatwinye , Inya (Mandalay) Fe – 54% 3.7 + 4.5 million (Probable) Minlan Thanseik , Shwegyin ( Bago ) Fe – 28 to 56.7% 75.53 million (Possible) Kanmaw Island ( Tanintharyi ) Fe – 36% 21.2 million (Probable) Kho Island ( Thanintharyi ) Fe – 46.05% 7.6 million (Probable)

19. Distribution of Nickel Deposit

20. Nickel Deposit in Myanmar 14 occurrence of nickel deposit. Nickel and chromium minerals are always associated with the Ultramafic rocks . Occur in several localities on the eastern foothill of the Western Ranges. Mwe Taung and Phar Tung in Chin State and Tagaung Taung in Mandlay Region are economically attractive. Tagaung Taung nickel mine was the largest mining project with Myanmar and China, also one of the largest Chinese project investments in neighboring country.

21. Distribution of Chromium Deposit

22. Chromium Deposits in Myanmar 43 of Chromium occurrences Associated with ophiolite assemblage occur in several localities on eastern foothill of the Westen Ranges. Chromite deposits are wide spread occurrences in Myanmar being related to north –south trending ophiolite lines.

23. Distribution of Gold and Platinum Deposit

24. Gold Occurrence in Myanmar PRIMARY GOLD DEPOSITS/OCCURRENCES IN MYANMAR   (1) Mesothermal gold-quartz lode, porphyry style Cu-Au & its related Epithermal Au along the central magmatic arc.   (2) Sediment-hosted epithermal Au mineralization along the Sagaing fault zone. (3) Mesothermal and epithermal gold mineralization in Tagaung Myitkyina belt   (4) Au(Cu) skarn & Mesothermal veins in marble, gneiss and granite within the Mogok metamorphic belt   (5) Slate belt style Mesothermal gold-quartz veins in Chaung Magyi & Mergui Groups.

25. Gold Deposit in Myanmar Gold is known to occur quite widely in several part of the country. As placer in stream channels or in the soil developed above the mineralization area. The central volcanic line is very attractive for epithermal and mesothermal copper-gold mineralization.( Wintho-Bamauk region, Kyaukpazut , Kyaukpahto gold mine and etc.) The Slate Belt on western mergin of the EHP became a target of Slate Belt gold (metamorphic hydration) mineralization. ( Modi Taung , Phayaung Taung , Taungoo-Shwegyin - Kyaikhto areas)

26. Distribution of Manganese Deposit

27. Distribution of Gem & Quartz

28. Distribution of Zircon Sand, Glass Sand and Heavy Mineral

29. Distribution of Limestone Deposit

30. Distribution of Gypsum Deposit

31. Distribution of Clay, Bauxite and Phosphate Deposit

32. Current Mining in Myanmar

33. The List of Issued Mining Licence from Ministry of Mine Sr. No State& Region Large Scale Small Scale Exploration Subsistance Small Scale Processing Feasibility Total 1 Kachine 3 77 64 -     144 2 Kayar 1 15 12 -     28 3 Kayin 11 46 42 10     109 4 Chin - - 4 -     4 5 Sagaing 23 423 24 2   3 475 6 Tanintharyi 17 44 49 -   1 111 7 Nay Pyi Taw 2 - - -     2 8 Bago - 13 2 -     15 9 Magway 2 33 20 -   1 56 10 Mandalay 44 400 54 2 141 2 643 11 Mon 6 33 7 -   3 49 12 RaKhine 1 - 4 -     5 13 Shan (South) 12 117 115 -   1 245 14 Shan ( North) 19 74 48 10   3 154 15 Shan ( East) 1 64 74     2 141 16 Ayarwaddy 3 4 -       7 Total 145 1343 519 24 141 16 2188

34. Current Mining in Myanmar Sabe Taung , Kyisin Taung (S&K) Copper Project Also known as Monywa Project. Myanmar Ivanhoe Copper Co Ltd(MICCL) had been foregin joint venture with ME-1 and produced grade A cathode copper from S&K and Sable Taung South deposits. It ownership was transferred to local company with a foreign joint venture company. MICCL produced 264,036 t of cathode copper up to the transfer date. Early in the 20 century the S&K mine is operated by Wanbo Mining Ltd with the name of Myanmar Yang Tse Copper Ltd.

35. Current Mining in Myanmar Letpadaung Copper Project LCP is located in the largest of four copper deposits in the Salingyi Township area of Sagaing Region. On July 24 2013 , ME -1 signed to the PSC for LCP with Myanmar Economic Holding Ltd (MEHL) and Wanbo Mining Ltd. Government of Myanmar with 51%,whilst MEHL and Wanbo retain 49% . The estimated mine life is 30 years. This is expected to produce 100,000 t/y of copper. The stripping ratio in mine is almost 1:0.99.

36. Current Mining in Myanmar Namtu Bawdwin Lead-Zinc-Silver The famous Namtu Bawdwin lead-zinc mine has been producting refined lead and silver, as well as nickel, copper matte and antimonial products for many years. Bawdwin is one of the world’s largest undeveloped silver-lead-zinc mines. Ownership was transferred in 2010 to Win Myint Mo Industrial Co.PSC with ME1 Bawdwin is a rich polymetallic deposit of 520g/t silver –equivalent grades. The metal content of run-of-mine ore (ROM) around this time was 100-185 g/t Ag, 21%Pb , 15%Zn, Cu0.23%, Ni 0.08% and Fe 4.4%, APML says silver equivalent grade is 305-520 g/t. Asia Pacific Mining Ltd licence application covers 80,000 ha surrounding Bawdwin mine.

37. Current Mining in Myanmar Tagaung Taung Nickel Project A considerable amount of Chinese investment in the minerals sector. At the time, it was signed, Tagaung Taung nackel pooject was the largest mining project, China and Myanmar Government. It was also one of the largest Chinese project investments in a neighboring country. In July 2004 China Nonferrous Metal Mining (Group) Co (CNMC) signed exploration and feasibility agreement with ME -3. Total investment in the project will exceed $800 million for annual output of 85,000 t of ferro -nickel after completion. It has 700,000 t of nickel resources in the mine.

38. Investment Information

39. In accord with the policy of the Ministry of Mines, ministry of mine is not making their 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. Funds required to conduct the prospecting, exploration and feasibility study are borne by the investor 100% at his own risk. Ministry of Mines not allowed to export the raw ore. Investor should be made value added (or) mineral processing. Ministry encourages to establish the refinery plants/ smelters with the latest technologies. Investment Information

40. Procedure for Foreign Direct Investment in Mining Sector

41. ( a)  Foreign companies have to send letter of courtesy call to the Union Minister through the respective Embassy in Myanmar to Ministry of Foreign Affairs to the Ministry of Mines officially. (b)  The Union Minister or responsible officials will discuss the investment opportunities in mining sector mainly focus on mineral commodity and targeted area. (c)   Site visit will be arranged if requested by the investors or company after technical discussion with responsible departments. 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 two week ahead. Foreign Direct Investment procedures

42. (d)  After the site visit, if the investor decided to invest in Myanmar, a proposal should submit to the Ministry of Mines and copy to relevant departments. (e)   Minerals prospecting, exploration and feasibility study are concerned to DGSE and other Mining Enterprises are responsible for mining operation and production stages. (g)  After getting  the approval   of   the   Ministry   of   Mines  and the completion of all the  require  recommendation  document, the proposal  and  the  Agreement  Draft   will   send   to   the Myanmar  Investment  Commission     ( MIC )  for   Investment permit.

43.   The  following  documents   should   be   included   with   the  proposal:    Company Registration      Company  Profile  and  other  relevant  facts  about   the   company      Recommendation  and  endorsement  of  the   respective   Embassy in  Myanmar       Financial Bank Statement       List of the Board of Directors       Initial work program       Map of the proposed area with coordinates. The require document with Proposal

44. Tex regime and Royalty in Mineral Sector

45. Sr. Type of Minerals Prospecting Period Exploration Period Feasibility Study Period Developing Period Production Period 1 st Yr 2 nd Yr 1 st Yr 2 nd Yr 1 st Yr 1 st Yr 2 nd Yr 1 st Yr 2 nd Yr 1 st Yr 2 nd Yr 3 rd Yr 1-15 Yrs 1. Industrial Minerals (or) Stone 0.5 1.0 8.0 12.0 14.0 8.0 12.0 8.0 12.0 14.0 16.0 20.0 20.0 2. Metallic Minerals 1.0 2.0 16.0 16.0 18.0 16.0 16.0 16.0 16.0 18.0 21.0 24.0 30.0 3. Precious Metallic Minerals 2.0 4.0 32.0 32.0 36.0 32.0 32.0 32.0 32.0 36.0 42.0 48.0 60.0 Dead Rent Remark : Extension period subject to the approval of the Ministry or the Department. 2. Exchange rate subject to daily exchange rate.

46. a.       For Metallic Minerals - 3 to 4 % b.      For Precious Metallic Minerals - 4 to 5 % c.       For Industrial Minerals - 1 to 3% d.      For Ruby, Sapphire, Jade and Diamond - 20% e.       For other Gems - 10 %    Royalty is taxed on value of mineral sold. Fiscal Regime Royalty

47. Category of Mining Permits

48. a.   Prospecting Permits -1 yr + 1 yr b.  Exploration Permits -3 yrs + 1 yr+1yr c.   Feasibility Study -1 yr d.  Subsistence Mining Permits -1 yr e.  Small Scale Mining Permits -5 yrs f.   Large Scale Mining Permits -15 yrs + 5 yrs (4 Times) Categories of Mining Permits

49. a.  Prospecting Permits - 4200 Km 2 b.  Exploration Permits - 3150 Km 2 c.  Small Scale Mining Permits - not more than 1 Km 2 d.  Large Scale Mining Permits - depends on Investment amount and Ore Deposit. Area of Mining Permits

50. Production Sharing Contract (PSC) System Ministry of Mine has practiced the production Sharing Contract (PSC) system in mining. 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 ratio to be agree upon between the parties. The Production Sharing Ratio is based on the mineral commodity like Gold, Copper, Lead, Zinc, Tin, Tungsten, Nickel, Manganese, Industrial Raw Mineral and Coal etc. and as well as based on the current LME (London Metal Exchange) prices. The Production Sharing Ratio has to negotiate with concerning Mining Enterprises when Foreign Company is proposed for Mining.

51. Investment Opportunity (Joint Venture) 1988 Union of Myanmar Investment Law 1994 Union of Myanmar Mines Law 1996 Rule relating to Mines Law To invite participation in terms of technical known- hown and investment from sources with in the country and abroad. Now Myanmar Foreign Investment Law and Myanmar Mining Law are revised to fulfill the present situation and will submit to the Pyithu Luttaw (Parliament) in near future.

52. Sr. Company Registered Country Type of Mineral Type of Permit 1. Conerstone Resource (Myanmar) Ltd Australia Zinc Ore Large Scale Mineral Production Permit 2. Myanmar Ponepipet Co.,Ltd Thailand Tin Concentrate ၊၊ 3. Myanmar CNMC Nickel Co.,Ltd China Ferronickel ၊၊ 4. Simco Song Da Joint Stock Co., Vietnam Marble ၊၊ 5. Asia Pacific Mining Ltd. China Lead, Zinc, Copper, Gold Exploration Permit 6. Nobel Gold Limited Russia   Exploration Permit 7. De Rui Feng Investment Co., Ltd. China   ၊၊ 8. North Mining Investment Co., Ltd. China Gold and Associated Minerals Feasibility Study 9. Myanmar Yangtze Copper Co., Ltd. China Tin-Tungsten Large Scale Mineral Production Permit 10. Myanmar Wanbao Copper Co., Ltd. China Copper ၊၊ 11. Daewoo Precious Resources Co.Ltd Korea Copper, Gold Exploration Permit 12. GPS Joint Venture Co.,Ltd China Lead, Zinc Large Scale Mineral Production Permit 13 Sichuan Chuandi Myanmar Mining Co.,Ltd China Copper Feasibility Study 14 Royal Light Ron Ann Co., China Iron Exploration & Feasibility 15 Geo Pro Mining Co.,Ltd Russia Antimony Prospecting , Exploration & Feasibility 16 Asia Mining Limited Singapore Heavy Sand ( Mineral Sand) Exploration 17 Myanmar VES Joint Venture Co., Thailand Jewellery Value added Processing & Marketing 18 Myanmar Tasaki Co., Japan Pearl Large Scale Pearl Production 19 Myanmar Atlantic Co., Australia Pearl Large Scale Pearl Production 20 Myanmar Adman Pearl Co., Thiland Pearl Large Scale Pearl Production 21 Belpearl(s)Pte.Ltd Singapore Pearl Pearl breed & Production Foreign Direct Investment List in Mining Sector   On 31.12.2014

53. Sr. Company Registered Country Type of Mineral Type of Permit 1. Conerstone Resource (Myanmar) Ltd Australia Zinc Ore Large Scale Mining Permit 2. Myanmar Ponepipet Co., Ltd Thailand Tin Concentrate ၊၊ 3. Myanmar CNMC Nickel Co., Ltd China Ferronickel ၊၊ 4. Simco Song Da Joint Stock Co., Vietnam Marble ၊၊ 5. Asia Pacific Mining Ltd. China Lead, Zinc, Copper, Gold Exploration Permit 6. Nobel Gold Limited Russia Gold and Associated Minerals ၊၊ 7. De Rui Feng Investment Co., Ltd. China Tin-Tungsten ၊၊ 8. North Mining Investment Co., Ltd. China Ferronickel Feasibility Study 9. Myanmar Yangtze Copper Co.,Ltd . China Copper Large Scale Mining Permit 10. Myanmar Wanbao Copper Co.,Ltd . China Copper ၊၊ Permit Issued to Foreign Investors from Ministry of Mine

54. Project Requiring An Initial Environmental Examination (IEE) Industrial Mineral (Small Scale) less than 247.1 acres Gold (small scale) less than 20 acres Gemstone less than 20 acres Other Mineral(small scale) less than 20 acres

55. Project Requiring A Full Environmental Impact Assessment(EIA) Industrial Mineral (Large Scale) 247.1 acres and above Gold (Large scale) 20 acres and above Gemstone 20 acres and above Other Mineral(Large scale) 20 acres and above

56. Why You Investment in Mining Sector in Myanmar Access to untapped world-class mineral resources and a geostrategic location. Unknown small scale mine are preserved in most of parts. Small scale will be large scale Undergoing political and economic reforms, which will attract more foreign trade and FDI once the laws are in place The first three SEZs will set up in Thilawa , Kyaukphyu and Dawei .

57. Conclusion Well known deposits are already occupied by local company. So Foreign investors should be start from Green field area. Most of area in Myanmar have no geological records and minerals occurrence record because of security and terrain. So investor can expect to find the big mineral deposit base on mineral potential belt. Combine with accumulation on local people’s data base. Some of companies are making prospection and exploration in wide area. we expected to find new large deposits .

58. Thank You for Your Attention