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 .

Myanmar Mining Risk Map
Source: Tractus Research and Analysis, Myanmar Directorate of Geological Survey and Exploration, US Campaign for Burma

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.

About the author

Joshua is Tractus’ lead manager for the company’s Myanmar office and was Tractus’ first full time employee dedicated to the country. Since 2012, Joshua has led Tractus’ engagements in Myanmar including advising on more than US$31.5 million in direct investment decisions in the mining, porcelain, animal feed, garment and pharmaceutical sectors. Recent projects have included investment cash flow modeling, risk probability analysis, industrial site selection, supply chain analysis and government advocacy on licensing and approvals among others. Joshua sits on the Executive Committee of the American Chamber of Commerce Myanmar Chapter and is an active member of both the American Chamber of Commerce in Thailand and Thai-Canadian Chamber of Commerce as well as the Canada Asean Business Council. Joshua has spoken extensively on the topic of Myanmar including at forums in Toronto and New York as well as in Hong Kong, Vietnam and Singapore. As one of the earliest business advisors on the ground following the suspensions of US sanctions, Joshua’s opinions are regularly sought after and have been printed in regional media as well as the Washington Post and Christian Science Monitor.

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