Among other industries, Myanmar’s rich – but largely unexplored – mineral wealth has put mining near the forefront of the discussion on new foreign investment opportunities. The country is home to potentially large reserves of copper, lead, zinc, tin, tungsten, gold, coal and barite as well as precious and semi-precious stones given its geology. Opacity in the regulatory environment, political and social issues and the practice of onerous Production Sharing Contract (PSC) requirements, however, have stifled growth in the mining sector; conditions where only investors from China, Thailand, Hong Kong and Vietnam have had the risk tolerance to invest until very recently .
In some of the country’s most mineral rich areas, investors will note Myanmar mining risk from instances of armed conflict has prevented more large scale exploitation of minerals. While Myanmar has made strides towards a national cease fire agreement, announcing a draft national cease fire accord in the second quarter of 2015, data collected by the US Campaign for Burma, an American NGO, shows regular occurrences of armed conflict in Kachin and Kayin states along the Thai and Chinese borders.
For nearly two decades, Tractus has advised clients across Asia, and in Myanmar specifically, on their direct investment strategy. Engagements for mining interests in Myanmar have included regulatory analysis, supply chain analysis, investment feasibility studies and risk mitigation.
To learn more about the work Tractus does in Myanmar and across Asia contact us here.