Investment Opportunities in Mining Sector in Myanmar
Investment Opportunities in Mining Sector in Myanmar
1.
The Republic of the Union of Myanmar Ministry of
MinesInvestment Opportunities in Mining Sector
Presented by – U Win Htein
Director General Department
of Mines6/15/2012 Ministry of Mines
1
2.
1. Introduction ( i ) Organization Chart of the Ministry (
ii ) Legal Framework2. Mineral Occurrence in Myanmar3. Investment
Information ( i ) Procedure for the Foreign Investment ( ii )
Tax Regime in Mineral Sector ( iii ) Royalty ( iv ) Categories
of Mining Permits ( v ) Production Sharing Contract ( P.S.C ) System
( vi ) FDI List4. Conclusion
3.
Introduction Ministry of Mines is the governmentauthority
responsible for implementation ofthe policy, legislation and enforcement
ofLaw, Rules and Regulations in the miningsector.6/15/2012
3
4.
Organisation Chart of the Ministry
Union Minister No.(1) No.(2) No.(3) Myanmar
Myanmar Myanmar Department Department Mining Mining
Mining Gems Salt Pearl of
ofEnterprise Enterprise Enterprise Enterprise and
Enterprise Geological Mines
Marine Survey
Chemical &
Enterprise
Mineral
Exploration 6/15/2012
4
5.
Myanmar is endowed with mineral resources such as copper,gold, lead,
zinc, silver, tin and nickel and so on.Myanmar has a lot of potential
for mining sector if we cancombine with our rich mineral deposits and
newtechnologies.So, I would like to invite the investors in Mining
Sectors asnot only FDI( Foreign Direct Investment ) but alsopartnership
with local companies in Myanmar.6/15/2012
5
6.
Legal FrameworkNow a days , MIC ( Myanmar Investment Commission) is
trying topromulgate the new Myanmar Investment Law.The Union of Myanmar
Mines Law was promulgated in September1994.Rules relating to the law
followed in December 1996.At Present, Ministry of Mines is trying to
amend the Myanmar MinesLaw with the advice of experts and publics.( i )
To facilitate the environmental conservation and Green Mining .(ii) To
encourage for investments more easily and trustyfully.According to the
Myanmar Mines law, all natural mineral depositsfound either on or under
the soil of any land in the continental shelf aredeemed to be owned by
the State.6/15/2012
6
8.
GEOLOGICAL MAP OF MYANMAR ( 2008 ) •
Compilation and Digital Geological map of Myanmar based on
the 1:1M scale (1977) was completed in 2008 and printed in 1:
1 million scale. • It was registered and copy
right at the Myanmar registration office in 2008.6/15/2012
8
9.
92° 94° LO 96°
98° 100° 102°
H
IT
TH
RU
DI A NJ I ST
N
AL 28° IN NT
U
28°
O
MINERAL BELTS OF MYANMAR
T
FR
HR
ST
US
ST RU
YAN RU TH
T
A LA TH
T HI M A US
A
G
T HR LS N IL
NG
H
SA K IR
DI 26° MI
26° G ON IL L IFT
SH L UP A
G
NA
CHINA M ani pur
K
GO
EAU 24°
24°
MO
INDEX
T
PLA 22°
Man dalay
22°
N
Tin- Tungsten Belts
MT . V I C TOR IA M
t.
SH A D OME
Popa
Antimony Belts
Lead – Zinc – S ilver- Copper Belts
THR 20°
20°
UST
Gold-
Copper- Iron Belts je ctiv RIDG E
Nickel- Chromite- Copper- Gold-
Platinum Belts
TH AIL AND
e)18°
18°
T
Iron – Manganese Belt EAS ( pro
The Precious S
tone Belts ETY
Yan gon
M awlamyin g NIN
Oil- Gas
and Coal Belts16°
16° ADAMAN S EA 2 00 km14°
14°12°
12°10° 92°
6/15/2012 94°
96° 98° 100°
10°
102°
9
15.
Major Minerals Produced by the CountryMajor minerals produced and
exported are - Cathode Copper, Refined Lead, Refined Silver,
Zinc Concentrate, Refined Tin, Tin Concentrates, Tin-wolfram Mixed
Concentrates and Coal6/15/2012 15
16.
Major minerals produced for domestic consumptions are- Gold Iron
and Steel Limestone Industrial Minerals and Barites
Powder6/15/2012 16
17.
Gemstones such as Rubies, Sapphire, colored gemstone andJade are
also exported.Myanmar have held emporiums for Jade, Gems and Pearlssince
1964 with the pricing based on Foreign Currencies atleast twice a year.
( sell through tender or competitivebidding )6/15/2012
17
18.
1. In accord with the policy of the Ministry of Mines, our
ministry is not making own investment, but to encourage foreign and
local investors to invest in the mining sector.2. The investor can
invest as a foreign direct investment (FDI) or joint investment with
local company.3. 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. 6/15/2012
18
19.
4. Funds required to conduct the prospecting, exploration and
feasibility study are borne by the investor 100% at his own risk.5.
Ministry of Mines not allowed to export the raw ore.6. Investor
should be made value added (or) mineral processing.7. Ministry encourage
to establish the processing plants with the latest technologies.
6/15/2012 19
20.
Procedures for the Foreign Investment in Mining
Sector1. 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.2. The Union
Minister or responsible officials will discuss the investment
opportunities in mining sector mainly focus on mineral commodity and
targeted area. 6/15/2012
20
21.
3. 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.4. 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.5. Minerals prospecting, exploration and feasibility study
are concerned to DGSE and other Mining Enterprises are responsible for
mining operation and production stages. 6/15/2012
21
22.
6. The following documents should be included with the proposal:
(a) Company Registration (b) Company Profile and other relevant
facts about the company (c) Recommendation and endorsement of
the respective Embassy in Myanmar (d) Financial Bank
Statement (e) List of the Board of Directors (f) Initial work
programme (g) Map of the proposed area with coordinates. 6/15/2012
22
23.
7. After getting the approval of the Ministry of Mines and the
completion of all the require recommendation documents, the proposal
and the Agreement Draft will send to the Myanmar Investment Commission
( MIC ) for Investment permit. 6/15/2012
23
25.
Dead Rent for one Square Km in Kyats Type
Prospecting
Exploration PeriodSr. of period Minerals
1st Yr 2nd Yr 1st Yr 2nd Yr 3rd Yr 4th
Yr 5th Yr Industrial 1 Mineral (or) 50,000
100,000 100,000 200,000 400,000 600,000 800,000
Stone Metallic 2 100,000 200,000
200,000 400,000 800,000 1,200,000 1,600,000 Mineral
Precious 3 Metallic 200,000 400,000 400,000
800,000 1,60,000 2,400,000 3,200,000 MineralRemark ;1.
Extension Period subject to the approval of the Ministry or the
Department 2. Exchange rate subject to daily exchange rate.
6/15/2012
25
26.
Dead Rent for one Square Km in Kyats
Feasibility Study Production
Developing
Period Type period
Period Sr. of Minerals
1st Yr 2nd Yr 1st Yr 2nd Yr 3rd Yr
1-20 Yrs Industrial 1 Mineral (or) 800,000
1,200,000 1,400,000 1,600,000 2,000,000 2,000,000
Stone Metallic 2 1,600,000
1,600,000 1,800,000 2,100,000 2,400,000 3,000,000
Mineral Precious 3 Metallic 3,200,000
3,200,000 3,600,000 4,200,000 4,800,000 6,000,000
MineralRemark ;1. Extension Period subject to the approval of the
Ministry or the Department 2. Exchange rate subject to daily
exchange rate. 6/15/2012
26
27.
RoyaltyAccording to Myanmar Mines Law For Metallic Minerals
- 3 to 4 % For Precious Metallic Minerals
- 4 to 5 % For Industrial Minerals - 1 to
3% For Ruby, Sapphire, Jade and Diamond - 20% For other Gems
- 10 % Royalty is levied on value of
mineral sold. It is a sale based royalty and not a production based
royalty. 6/15/2012
27
29.
Foreign Direct Investments(FDI) Enterprise
Type ofSr. or Company
Current status Location
Mineral Dept:1. D.G.S.E Nobel Gold
Gold and Exploration Bhamauk,
Limited associated Sagaing Region
(Russia ) minerals2. ME(1) (i)
Conerstone Zinc Ore Production Shan State,
Resources
Minepon (Myanmar)Ltd
Township (Australia)
(ii) North Mining Ferronickle Feasibility Study Chin State,
Investment Alloy
Teetain Township, Co.,Ltd
Hmewtaung Track (China)
(iii) Asia Pacific Lead, Zinc , Feasibility Study
Kantbalu - Wuntho Mining Ltd Copper,
(Eastern Area) 6/15/2012 (China)
Gold 29
Sagaing
Region
30.
Sr. Enterprise Company Type of Current
Location or Mineral status
Dept:5. ME(2) Myanmar 72% Tin
Production Taninthayi Foreign Direct Investments(FDI)
Ponepipet Co.,Ltd (Thai Land)
Concentrate Region,
Dawe Township,
Heinda
Mine6. ME(3) (i) Myanmar Ferro Nickel Developing
Thabeikkyin CNMC Nickel
Township, Co.,Ltd
Mandalay ( China)
Region
Hteechaik
Township,
Sagaing Region (ii) Simco
Song Marble Developing Nayputaung, Da
Joint Stock Taungkoke
Company Township,
( Viet Nam) Rakhine State
6/15/2012
30
31.
1. At present, Myanmar practice the production sharing contract (
P.S.C ) system.2. Our own Mines are already transferred to
Private Companies.3. It is the policy of the Ministry of Mines not to
make investment on its own, but to encourage foreign and local
investors to invest with the advanced technologies.4. Well known
deposits are already occupied by local Companies . So, Foreign
Investor should be started from Grassroots Exploration.5. You are
warmly welcome to invest in Mining Sector. 6/15/2012
31
32.
Thank you very much for your kind attention.
Ministry of Mines, Myanmar6/15/2012 32
1.
2/18/2013
1
1
Dr Ye MyintSwe
Director General
DEPARTMENT OF GEOLOGICAL SURVEY AND MINERAL EXPLORATION
MINISTRY OF MINES
Regional Tectonic setting of Myanmar
as a result of collision between Indian
and -Asian plates
2.
2/18/2013
2
3
Record in Myanmar and the
Andaman Sea
for the Cenozoic oblique convergence of India
along Sundaland
GIAC (Geodynamics of India Asian Collision)
Project work in this region during recent decade.
3.
2/18/2013
3
5
Central
Magmatic
Belt
Rakhine
Coastal Strip
Jade Mine
belt
Hukaung Basin Tagaung-Myitkyina
belt
Mogok
Metamorphic
Belt
Shan –Thai Block includes Precambrian to
Cretaceous rocks with Slate belt and Mogok
Metamorphic belt to the west. This province is
southeast continuation of Tibet Plateau.
Central Tertiary sedimentary basins with
oil-gas and coal occurrences. The N-S trending
Central Magatic Belt at the centre.
Western Ranges- fold-thrust belt with Chin
flysch. Western Ranges and Central Lowlands
includes northern continuation of Sunda arc.
GENERALIZED GEOLOGICAL CROSS-SECTION ACROSS MYANMAR
4.
2/18/2013
4
7
Three modes of earthquake generation in the Andaman Sea
(Schematic tectonic cross-section along Lat 11˚N)
ANDAMAN SEA
Volcanism
TFTF
Earthquakes
Earthquakes
Active spreading and
transform faulting (TF)
THAILAND
EW
INDIAN
OCEAN
Subduction
Sunda Trench
Basalt
Subducting Slab
ASTHENOSPHERE
Over-riding slab (Basalt)
Melting
(to form magma)
ASTHENOSPHERE
Granite
9283
84
85
86
94
95
96
93 102
EA I
B F
K O C G K
H L
E I
B F
C G
D H
A E
F J
B
K O
L P
I M
D H L
E I
F
G
H L
E I
F J N
M
P
O
K
FBN
I M A E I M
PL D
GCOKG
P D
M
N
O
P
C G
D H
C
B F
A E
H L
J
I M
J N
K
L
N
M
J
K
J
Sittwe
020 20 40 60 80 100 Mile
SCALE
N
98 1009694
98
28
26
27
25
24
23
22
21
20
19
18
17
16
14
13
12
10
92 93 95
11
10
12
13
14
15
16
17
18
20
21
22
23
24
25
26
27
28
1021019997959392
15
Magway
Pyay
Taungoo
Loikaw
YangonPathein
Mawlamyine
Dawei
Myeik
Kawthaung
Muse
Bhamo
Banmauk
Falam
Mawlaik
Myitkyina
Putao
Kawlin
Pyinmana
Paan
11
19
INDEX
Mapping before 1996
Mapping after 1996 to 2011
UNDP GSEP 1974- 78/ JV 1996
Columbo 1973 - 75
ECAM 1980-84
GSI Data
Taunggyi
Tachileik
Kengtung
Mandalay
Monywa
Lashio
Image Interpretation
1977 Data
STATUS OF GEOLOGICAL
MAPPING
Area extent of Myanmar – 261227 sq miles
Geological mapping area(on ground) ~70%
Geological mapping(by the aid of
Aerial Photos & RS-GIS techniques) ~30%
5.
2/18/2013
5
Geological Map of
Myanmar (1977)
Geological Map Of Myanmar
(2008),
NINETYEAST
RIDGE
(projective)
Yangon
THR
UST
ADAMAN SEA
SHAN
PLATEAU
MT.
VICTORIA
DOME
NAGA
H
ILLS
Manipur
CHINA
THAILAND
INDIA
HIMALAYAN
FRONTAL
THRUST
IN
JU
TH
RU
ST
Mt.
Popa
LOHIT
THRUST
THRUST
THRUST
DIS
ANG
N
A
G
A
SH
IL
LONG
MIKIR
UPLIFT
200 km
92°
10°
12°
14°
16°
18°
20°
22°
24°
26°
28°
92°
94° 96° 98° 100° 102°
94° 96° 98° 100° 102°
N
10°
12°
14°
16°
18°
20°
22°
24°
26°
28°
MOGOK
Mandalay
Mawlamying
Tin- Tungsten Belts
Antimony Belts
Lead – Zinc – Silver- Copper Belts
Gold- Copper- Iron Belts
Ni-Cr-Cu-Au-Pt Belts
Iron – Manganese Belt
The Precious Stone Belts
Oil- Gas and Coal Belts
MINERAL PROVINCES OF MYANMAR
10
In Myanmar, Mineral occurrences include
1. Metallic ore minerals
Iron & metals for steel alloys- Fe, Mn, Cr, Ni, Mo
Base & non-ferrous metals – Pb, Zn, Cu, Sn, W, Sb & Ti
Precious & rare metals- PGM, Au, Ag, Nb, Ta
2.Industrial minerals & non-metallic raw minerals
Chemical & fertilizer minerals- Barite, fluorite, Gypsum, rock salt
Ceramic & refractory minerals- clay, limestone, dolomite, feldspar, quartz,
glass sand
Construction & building materials- Decorative stones, road materials,
limestone for cement
3. Preceous & semi-precious Gemstones
Ruby, Sapphire, Jade, Diamond, etc
4. Fuel minerals
(oil, natural gas, oil shale, coal,
6.
2/18/2013
6
Putao
Myitkyina
Bhamo
Mawlaik
Yangon
Mawlamyaing
Dawei
Myeik
Kawthaung
Taungoo
Pyay
Monywa Mandalay
Kengtung
Sittwe
Pathein
94°
28°
92°
Muse
CHINA
LAOS
THAILAND
INDIA
BayofBengal
Lashio
Taunggyi
Loikaw
Gulf of Matabin
INDEX
Magwe
Sumprabum
Shwegu
Tanaing
Mongmit
Thabeikkyin
Mabein
Pyinmana
Yamethin
Letpadan Shwekyin
Kyaikto
Kawlin
Pinlebu
Homalin
Hpa An
Sagaing
Haka
96° 98° 100° 102°
26°
24°
22°
20°
18°
16°
14°
12°
10°
28°
26°
24°
22°
20°
18°
16°
14°
12°
10°
94°92° 96° 98° 100° 102°
Lead
Zinc
Silver
N
020 20 40 60 80 100 MILES
DISTRIBUTION OF LEAD-ZINC-SILVER DEPOSIT
Panwa (Kachin)
Pb,Zn -1.06%
12.5 million (Possible)
Bawdwin (Shan North)
Pb,Zn -5%
12.8 million (Probable)
Yadanatheingi (Shan North)
Bawsaing (Shan North)Paungdaw (Mandalay)
Mawhki (Kayin)
Zn - 0.3%
0.332 million (Possible)
LonChein(Shan South)
Zn - 36%
0.234million (Possible)
Phaleng(Shan North)
12
Lead-Zinc-Silver Deposits
-more than 100 occurrences of Pb-Zn-Silver
mineralization in Myanmar
-mineralization occurs as five different styles
1. Volcanogenic massive sulphides type(VMS) at
Bawdwin mine
2. Massissippi valley type deposit at Bawsaing mine
3. Cavity filling vein-type in Yadanatheingi mine
4. in veins and skarn type near the contact between
granitic rock and marble at Phaungdaw mine
5. Zinc carbonate deposit (secondary deposit) at Long
Hken mine
7.
2/18/2013
7
13
Phaungdaw
Bawdwin
Panwa
Bawsaing
Panwa
Bawdwin
Phaungdaw
Bawsaing
Yadanatheingi
Longhken
Yadanatheingi
Lead deposits zinc deposits
Bawdwin Mine
The LargLargest Lead-Zinc-SilverMine in Myanmar
9.
2/18/2013
9
• Tin-tungsten
(primary, eluvial,
alluvial types)
associated with
Mesozoic (mainly
Jurassic) and
Tertiary granite
belt
Mawchi
Yangon
Myitkyina
Yangon
Mawlamyine
Dawei
Myeik
Kawthoung
Loikaw
Taunggyi
Mandalay
Kengtong
020 20 40 60 80 100 MIl es
98 1009694
28
26
27
25
24
23
22
21
20
19
18
17
16
14
13
12
11
92 94 96 98 100 102
10
11
12
13
14
15
16
17
18
20
21
22
23
24
25
26
27
28
10292
15
Lashio
Tachileik
Muse
Index
Tin & Tungsten
19
10
C
H
IN
A
INDIA
L A O S
THAILAND
Bay
ofBengal
Gulf of Mottama
N
Kanbauk
Harmyingyi
Palaw
Tanintharyi
Thabawleikgyi
Bokpyin
Lenya
Karathuri
Maliwun
Lampi Island
Yay
Paung
Pyinmana
Mawchi
Namhkam
Mongyawng
Kazat
Hpa-An
Monghsat
Western Granitoid Belt
‐Cretaceous to Lower Eocene
‐characterized by high‐level
intrusions associated with
Porphyry Cu (Au) related,
younger volcanics
‐emplaced as a magmatic‐
volcanic arc
GRANITOID BELTS & Sn-W
OCCURENCES OF MYANMAR
(after Khin Zaw ,1990)
Central Granitoid Belt
‐Upper Cretaceous to Lower
Eocene
‐characterized by mesozonal
plutons associated with
vein type Sn‐W deposits
‐associated with abundant
pegmatites and aplites and rare
co‐magmatic volcanics
Eastern Granitoid Belt
‐? Triassic
‐characterized by medium to
coarsely porphyritic
‐mesozonal and Sn‐W bearing
granites
18
Tin-tungsten Deposits
-one of the most important mineral resources in Myanmar
-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,
-passing through the Tanintharyi Division, Kayin, Mon, Kayah
& Shan states and east of Pyinmana.
-Tin-tungsten ores occur in close association with granitoids
and related pneumatolytic rocks emplaced during Jurassic,
Cretaceous and possibly Triassic. The country rocks of these
intrusive masses consist of the clastic Mergui Series,
Taungnyo Group, Mawchi Series and Lebyin Group.
-Most of the cassiterite is mined from placers while tungsten
is mined from hard rock veins.
10.
2/18/2013
10
Myitkyina
Yangon
Mawlamyine
Dawei
Myeik
Kawthoung
Loikaw
Taunggyi
Mandalay
Kengtong
020 20 40 60 80 100 MIl es
98 1009694
28
26
27
25
24
23
22
21
20
19
18
17
16
14
13
12
11
92 94 96 98 100 102
10
11
12
13
14
15
16
17
18
20
21
22
23
24
25
26
27
28
10292
15
Lashio
Tachileik
Muse
Index
Tin & Tungsten
19
10
C
H
IN
A
INDIA
L A O S
THAILAND
BayofBengal
Gulf of Mottama
N
Kanbauk
Harmyingyi
Palaw
Tanintharyi
Thabawleikgyi
Bokpyin
Lenya
Karathuri
Maliwun
Lampi Island
Yay
Paung
Pyinmana
Mawchi
Namhkam
Mongyawng
Kazat
Hpa-An
Monghsat
DISTRIBUTION OF TIN - TUNGSTEN DEPOSITS
Heinze (Placer)
Kanbauk ( Primary/ Placer)
Hermyingyi (Primary)
Heinda (Placer tin deposit)
KyaukmeTaung,
Pagaye(Placer)
Theindaw(Placer)
Manawlon(Placer)
Atwin Bokpyin (Placer)
Mawchi (Primary)
Padatchaung (Primary)
Tin- Tungsten occurrences= 480
Sn-W deposits, mainly
associated with granitic
intrusions along the
tanintharyi and western
margin of shan plateau
Hermyingyi Sn-W mine, Dawei
11.
2/18/2013
11
Heinda mine, Dawei
Bucket Dredger in Tin-
tungsten mining
Mawchi Sn-W mine,
Kayah State
12.
2/18/2013
12
Mineralized vein, Mawchi mine (Loc: Level‐4, vein no.15)
Tourmaline
segregation
granite
granite
Putao
Myitkyina
Bamo
Mawlaik
YANGON
Mawlamyaing
Dawei
Kawthaung
Pyay
Monywa
Mandalay
Kengtung
Haka
Sittwe
Pathein
98 1009694
28
26
24
22
20
18
16
14
12
92
94 96 98 100 102
10
12
14
16
18
20
22
24
26
28
10292
Tachileik
CHIN
A
LAOS
THAILAND
INDIA
BayofBengal
Mabein
Lashio
Taunggyi
Loikaw
N
Gulf of Matabin
Magwe
INDEX
Shwegu
Sumprabum
Kawlin
Taguang
Kyaukme
Pangyan
MaingyaungYatsauk
Kyaukse
Laymyetna
Sinbo
Sawlawt
Muse
Salingyi
Hpa An
Copper
Thabeikkyin
Hkamti
Homalin
10
Sagaing
Myeik
Linkay
Pyawbwe
Kutkhaing
020 20 40 60 80 100 MILE
DITRIBUTION OF COPPER DEPOSITS
Sinbo- NankesanKyesinTaung
Cu - 0.77 %
66.5 million (Possible)
Shangalon
Cu -0.23 %
9 million (Possible)
SabeTaung & south
Cu - 0.7 to1.01 %
27.86 million (Possible)
Letpadaung
Cu - 0.4 %
1478 million (Possible)
Laymyetna
Cu - 0.8 to 2 %
0.28 million (Possible)
Sabe Taung
Cu - 1.51 %
0.88 million (Possible)
Kweeight Taung
Panmakut Manna
Panpwe KyaukTaung
Potential area
-more than 50 occurrences
copper mineralization in
Myanmar
-The copper mineralization
within the central volcanic arc
started from Mt. Popa and
passes through lower Chindwin
area where the volcanics are
hosted to the porphyry copper
deposits at the Sabe Taung,
Kyesin Taung, & Lepadaung
Taung, Monywa.
14.
2/18/2013
14
27
Cathode Copper from Monywa
Putao
Myitkyina
Bhamo
Mawlaik
Yangon
Mawlamyaing
Dawei
Myeik
Kawthaung
Taungoo
Pyay
Monywa
Mandalay
Kengtung
Sittwe
Pathein
94
28°
92°
Muse
CHINA
LAOS
THAI
INDIA
BayofBengal
Lashio
Taunggyi
Loikaw
N
Gulf of Matabin
INDEX
Gold (Primary)
Magwe
Sumprabum
Shwegu
Tanaing
Mongmit
Thabeikkyin
Mabein
Pyinmana
Yamethin
Letpadan Shwekyin
Kyaikto
Kawlin
Pinlebu
Homalin
Gold (Placer)
Hpa An
Sagaing
Haka
Platinum
96 98 100 102
26°
24°
22°
20°
18°
16°
14°
12°
10°
28°
26°
24°
22°
20°
18°
16°
14°
12°
10°
94°92° 96° 98° 100° 102°
DISTRIBUTION OF GOLD-
PLATINUM DEPOSITS
Shadusuik (Kachin)
Pt + Pd
Ngagyan (Kachin)
Pt + Pd
Namma- Kangon (Kachin)
Au - 0.13 gm/cu-yd
1.05 million Cu.
Yd(Possible)
Wakan- Tanaing (Kachin)
Au - 0.04 gm/cu-yd
0.023 million Cu. Yd
(Possible)
Shangalon (Sagaing)
Au - 1.4-12 ppm
0.02 million (Possible)
Kyaukpahto
Au - 3 ppm
6 million tons (Probable)
Kwinthonse (Mandalay)
Au - 2-4 ppm
1.4 million (Probable)
Phayaungtaung (Mandalay)
Au - 4 ppm
3.7 million (Probable)
Moedi Taung (Mandalay)
Au - 15- 27 ppm
Shwegyin (Bago)
Au - 0.1-0.35 gm/yd3
1.2 million Cu.yd. (Probable)
Pyinmana (Mandalay)
Meyongyi (Mon State)
15.
2/18/2013
15
29
(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.
PRIMARY GOLD DEPOSITS/OCCURRENCES IN
MYANMAR
30
PRESENT SITUATION OF THE KYAUKPAHTO GOLD MINE, LOOKING SOUTH
17.
2/18/2013
17
Moditaung gold mine
Segment of Au-bearing
quartz vein on 950m
level at Htongyitaung,
40cm@11 g/t, looking
SE.
2/18/2013 33
• Coarse visible gold commonly
present in veins assaying over
30g/t Au
• Gold not encapsulated in
pyrite.
• Gold is frequently observed in
hand specimens in both the
oxide and sulphide zones.
laminated book & ribbon
vein. 77cm@122 to 575g/t
below oxide zone. Htongyi
Taung 950m level
Putao
Myitkyina
Bhamo
Mawlaik
Yangon
Mawlamyaing
Dawei
Myeik
Kawthaung
Taungoo
Pyay
Monywa
Mandalay
Kengtung
Sittwe
Pathein
28°
Muse
CHINA
LAOS
THAILAND
INDIA
BayofBengal
Lashio
Taunggyi
Loikaw
Gulf of Matabin
INDEX
Magwe
Sumprabum
Shwegu
Tanaing
Mongmit
Thabeikkyin
Mabein
Pyinmana
Yamethin
Letpadan Shwekyin
Kyaikto
Kawlin
Pinlebu
Homalin
Hpa An
Sagaing
Haka
26°
24°
22°
20°
18°
16°
14°
12°
10°
28°
26°
24°
22°
20°
18°
16°
14°
12°
10°
Iron
IRON Putao
Myitkyina
Bhamo
Yangon
Mawlamyaing
Dawei
Myeik
Kawthaung
Pyay
Monywa
Mandalay
Kengtung
Sittwe
Pathein
28°
Muse
CHINA
LAOS
THAILAND
INDIA
BayofBengal
Lashio
Taunggyi
Loikaw
Gulf of Matabin
INDEX
Magwe
Sumprabum
Shwegu
Tanaing
Thabeikkyin
Mabein
Yamethin
Letpadan
Kawlin
Homalin
Hpa An
Sagaing
Haka
26°
24°
22°
20°
18°
16°
14°
12°
10°
28°
26°
24°
22°
20°
18°
16°
14°
12°
10°
94°92° 96° 98° 100° 102°
Manganese
N
Tachileik
Monghpayak
Manganese
18.
2/18/2013
18
Putao
Myitkyina
Bhamo
Mawlaik
Yangon
Mawlamyaing
Dawei
Myeik
Kawthaung
Taungoo
Pyay
Monywa
Mandalay
Kengtung
Sittwe
Pathein
94°
28°
92°
Muse
CHINA
LAOS
THAILAND
INDIA
BayofBengal
Lashio
Taunggyi
Loikaw
Gulf of Matabin
INDEX
Magwe
Sumprabum
Shwegu
Tanaing
Mongmit
Thabeikkyin
Mabein
Pyinmana
Yamethin
Letpadan Shwekyin
Kyaikto
Kawlin
Pinlebu
Homalin
Hpa An
Sagaing
Haka
96° 98° 100° 102°
26°
24°
22°
20°
18°
16°
14°
12°
10°
28°
26°
24°
22°
20°
18°
16°
14°
12°
10°
94°92° 96° 98° 100° 102°
Iron
020 20 40 60 80 100 MILES
DISTRIBUTION OF IRON DEPOSITS
Kathaing Taung (Kachin)
Fe -50.56 %
223 million (Probable)``
Lamaung (Kachin)
Fe -51.54%
8.9 million (Probable)
Kantawyan(Kachin)
Fe -49-69%
2.354 million (Possible)
Sanleik (Kachin)
Lim.
10 million (Potential)
Taungkaton Taung
(Kachin)
Fe -37- 45 %
2.3million (Potential)
TaungNyo Taung (Kachin)
Fe -40.67 %
18.9 million (Potential)
Haemaung (Kachin)
Fe -45.93 %
1.1 million (Potential)
Kho Island (Tanintharyi)
Fe -46.05 %
7.6 million (Probable)
Iron
Maputae Island
(Tanintharyi)
Fe -42 %
1 million (Probable)
Kanmaw
Island(Tanintharyi)
Fe -36 %
21.2 million (Probable)
Minlan Thanseik,
ShweGyin (Bago)
Fe -28-56.7 %(Lim,)
75.53 million (Possible)
Kyatwinye, Inya
(Mandalay)
Fe- 54 %
3.7+ 4.5 million
(Probable)
Pinpet (Shan South)
Fe -56.4 %( He,Lim)
80 million (Probable)
Mongkannwe (Shan East)
Fe -39- 66 %
21.5 million (Potential)
Putao
Myitkyina
Bhamo
Yangon
Mawlamyaing
Dawei
Myeik
Kawthaung
Pyay
Monywa
Mandalay
Kengtung
Sittwe
Pathein
94°
28°
92°
Muse
CHINA
LAOS
THAILAND
IND
IA
BayofBengal
Lashio
Taunggyi
Loikaw
Gulf of Matabin
INDEX
Magwe
Sumprabum
Shwegu
Tanaing
Thabeikkyin
Mabein
Yamethin
Letpadan
Kawlin
Homalin
Hpa An
Sagaing
Haka
96° 98° 100° 102°
26°
24°
22°
20°
18°
16°
14°
12°
10°
28°
26°
24°
22°
20°
18°
16°
14°
12°
10°
94°92° 96° 98° 100° 102°
Manganese
N
020 20 40 60 80 100 MILES
Tachileik
Monghpayak
DISTRIBUTION OF MANGANESE DEPOSITS
Powel Island(Tanintharyi)
Mn - 27%
2.8 million (Probable)
Wansalot (Shan East)
Mn - 14%
0.135 million (Possible)
Kyaukpadaung (Mandalay)
Monpyin (Shan South)
Tar Pin (Shan East)
Mn - 6.6%
0.65 million (Possible)
Wansaw -Wanpaing (Shan
East)
Mn - 12.53%
4.95 million (Possible)
Manganese Occurrences= 52
Areye (Shan East)
Mn - 25%
1 million (Possible)
19.
2/18/2013
19
Putao
Myitkyina
Bhamo
Mawlaik
Yangon
Mawlamyaing
Dawei
Myeik
Kawthaung
Taungoo
Pyay
Monywa
Mandalay
Kengtung
Sittwe
Pathein
94°
28°
92°
Muse
CHINA
LAOS
THAILAND
INDIA
BayofBengal
Lashio
Taunggyi
Loikaw
Gulf of Matabin
INDEX
Magwe
Sumprabum
Shwegu
Tanaing
Mongmit
Thabeikkyin
Mabein
Pyinmana
Yamethin
Letpadan Shwekyin
Kyaikto
Kawlin
Pinlebu
Homalin
Hpa An
Sagaing
Haka
96° 98° 100° 102°
26°
24°
22°
20°
18°
16°
14°
12°
10°
28°
26°
24°
22°
20°
18°
16°
14°
12°
10°
94°92° 96° 98° 100° 102°
Nickel
N
Chromite
020 20 40 60 80 100 MILES
DISTRIBUTION OF CHROMITE
OCCURRENCES
Chromite Occurrences = 43
DISTRIBUTION OF NICKEL DEPOSITS
Putao
Myitkyina
Bhamo
Mawlaik
Katha
Yangon
Mawlamyine
Dawei
Kawthaung
Taungoo
Pyay
Taunggyi
Loikaw
Monywa
Mandalay
Kengtung
Haka
Sittwe
Pathain
020 20 40 60 100 miles80
98º 100º96º94º
28º
26º
24º
22º
20º
18º
16º
14º
12º
10º
102º92º
Lashio
Magwe
Tachileik
Muse
INDEX
N
THAI
LAO
INDIA CHINA
Tiddin
Kale
Shwegu
Tagaung
Gangaw
Saw
Sidoktaya
Ngape
Mindon
ausmu fyef;awmi f;
Nickel
Hopin
Hpa-An
Bago
Sagaing
Myeik
Bokpyin
98º 100º96º94º 102º92º
28º
26º
24º
22º
20º
18º
16º
14º
12º
10º
MWETAUNG
Ni- 1.19%
110 mt (Probable)
MAUNGDAW-NANMADAW
Ni- 0.41%
0.49 mt (Possible)
MINDINKYIN
Ni- 0.45%
0.02 mt (Possible)
UKINTAUNG,HKAKYINTAUNG
Ni- 0.4%
0.046 mt (Possible)
INDAWGYI
Ni- 0.41%
5.0 mt (Possible)
TAUNGGADON
Ni- 0.67%
0.028 mt Possible)
TAGAUNGTAUNG
Ni- 2.06%
40 mt (Possible)
Nickel Occurrences =14
Ni-Cr mineralization occurs in
close association with ultramafic
igneous rocks emplaced during
LateCretaceous-Early Eocene.
At Mwetaung & Tagaung Taung,
the deposits have formed as a
result of tropical weathering of
ultramafic rocks (Ni laterite
deposits)
Cromite deposits are of
widespread occurrences in
Myanmar being related to N-S
trending ophiolite lines.
20.
2/18/2013
20
Tagaung Nickel Project
Nickel laterite mine site
Processing Plant
Resource estimation-
40 mt with ~ 2.0 % Ni
TAGAUNGTAUNG
Ni- 2.06%
40 mt (Possible)
Putao
Myitkyina
Bhamo
Mawlaik
Yangon
Mawlamyaing
Dawei
Myeik
Kawthaung
Taungoo
Pyay
Monywa
Mandalay
Kengtung
Sittwe
Pathein
94°
28°
92°
Muse
CHINA
LAOS
THAILAND
INDIA
BayofBengal
Lashio
Taunggyi
Loikaw
Gulf of Matabin
INDEX
Magwe
Sumprabum
Shwegu
Tanaing
Mongmit
Thabeikkyin
Mabein
Pyinmana
Yamethin
Letpadan Shwekyin
Kyaikto
Kawlin
Pinlebu
Homalin
Hpa An
Sagaing
Haka
96° 98° 100° 102°
26°
24°
22°
20°
18°
16°
14°
12°
10°
28°
26°
24°
22°
20°
18°
16°
14°
12°
10°
94°92° 96° 98° 100° 102°
Antimony
020 20 40 60 80 100 MIles
DISTRIBUTION OF ANTIMONY DEPOSITS
Konsut,Kayah
Peinchit,Kayah
Laga,Kayin
Thabyu,Mon
Lebyin,Mandalay
Nahok,Shan
Mong Inn,Shan
Kadaik, Mon
Liharmyar,
Hopone
Antimony depositsAntimony deposits
-More than 140 occurrences of
stibnite and other sb-bearing
minerals are known in Myanmar.
-The majority of antimony
mineralization occurs in the late
Paleozoic carbonates (Triassic to
Permian in age) & also in the late
Pleozoic clastic sediments of the
Mergui series.
-generally found in veins or
lenses, or both.
-So far, the best known antimony
deposit s are at Thabyu, Kayin
State, near Thai Border. The ore
is reported to be of high grade.
22.
2/18/2013
22
Coal fields, Kalewa-Mawleik area
Coal exposures, Kalewa-Mawleik area
Kalaywa Coal Mine Namma Coal Mine
23.
2/18/2013
23
Myitkyina
Putao
Mogok
Bamah
Nyaungcho
Lashio
Katha
Monywa
MandalaySagaing
Taunggyi
Kyaingtong
Loikaw
Magwe
Pathein
Bago
Yangon Paan
Mawlamyaing
Dawe
Myeik
Kawthaung
Haka
Kawlin
Manpan
Pyay
Sittwe
Tachileik
Clay
Baryte
Bauxite
Phosphate
Kyunhla
Kalaw
Pindaya
Linkhay
Yemathin
CLAY,
BARYTE,
BAUXITE AND
PHOSPHATE
N
INDIA
C
H
IN
A
L A O S
THAILAND
BayofBengal
Gulf of Mottama
Index
Gypsum
98 1009694 10292
98° 100°96°94° 102°92°
28°
26°
24°
22°
20°
18°
16°
14°
12°
10°
28°
26°
24°
22°
20°
18°
16°
14°
12°
10°
Mawlamyine
Yangon
Bago
Myeik
Kawthoung
Dawei
Tanintharyi
Kengtong
Tachileik
Mongphyat
Kwanlon
Lashio
Bhamo
Mindon
Ngape
Loikaw
Magwe
Mandalay
Sagaing
Kyaukse
Pindaya
Pyinmana
Pha-an
Hlaingbwe
Shwekyin
TaunggyiKalaw
Myitkyina
Putao
Sumprabum
Mawlaik
Sinbo
Shwegu
Sittwe
Yinmabin
GangawHaka
Thabeikkyin
Khin-U
Tetain
Kyaukphyu
Gwa
Kyankhin
Pyay
Pathein
Ngaputaw
GYPSUM
M yeik
92H
102
94H 96H 100H 102H
10H
12H
14H
16H
18H
20H
22H
24H
26H
28H
10H
12H
14H
16H
18H
20H
22H
24H
26H
28H
L ashio
T aunggyi
K yaukse
M on ywa
B am or
Muse
K yaington
M ag we
L oikaw
Pyinm ana
M yitk yina
P utaO
T itein
H aka
S ittwe
P yawb we
P yi
P and aung
P athein Yangon
B ago
Mawlamyaing
Da we
K awthaung
ADAM AN SEA
BAYOFBANGAL
INDEX
L imesto ne
LAOST achileik
CHINA
INDIA
K unlong
K atha
T heikbeikk yin
K yaukpyu
THAILAND
P aan
M andalay
LIMESTONE
Lime stone deposits = 452
24.
2/18/2013
24
47
Mogok Ruby ,
Sapphire
Shan-Thai
Block
Rakhine
Coastal Strip
Jade
Mine area
Amber
Mongshu
Ruby
Gemstones of Myanmar
Mogok gemstone tract : Ruby, sapphire
and spinel occur as primary minerals
in marble, calc-silicates and as well as
obtained from placers in eluvial and
alluvial sediments.
Jade mine area: Jadeite-albite dykes
and veins intruded into serpentinite
bodies at the Tawmaw- Lonkin area,
Burmese amber (Burmite): The major
occurrences are located in the Hukwng
valley -
-other ruby occurrences are Nayaseik
and Pyinlon.504.5cts ruby
2/18/2013 48
Jade sale in mid. Year Emporium, 2009
26.
2/18/2013
26
RUBY from Mogok
Gemstone Tract
Mongshu Ruby Mine site
27.
2/18/2013
27
2013/2/18 uefUowf 53
RUBY, Mid. Year Emporium,2011
Sapphire from Mogok
Gemstone Tract
Assorted Gemstones from
Mogok Area
54
28.
2/18/2013
28
2/18/2013 55
MINERAL POLICYMINERAL POLICY
To boost up present production
To invite participation in terms of technical know-how and investment from
sources within the country and abroad
to fulfill the domestic requirements and to increase export by producing more
mineral products;
Conclusion
Myanmar - within the complex tectonic zone of active obloique convergent
between Asian and Indian plates exhibits the great diversity of geology,
Physiography, structural deformation and as well as episodic mineralization events
and various mineral commodities.
The mineral resources include Sn-W, base metals to precious to rare metals,
industrial raw minerals, jade & gemstones, and as well as coal , oil &gas. But most
of them are needed to be explored and proved systematically.
We hope there’ll be more cooperation
between Myanmar and Your Country in
the near future.
56
Myanmar's Mining Industry Dr. Neal Reynolds Director
Exploration & Evaluation CSA Global Realities and Visions for the
Future
1.
Myanmar’s Mining Industry
www.csaglobal.com 1
Dr. Neal Reynolds
Director Exploration & Evaluation
CSA Global
18/11/2014
Realities and Visions for the Future
2.
Introduction
Assessment of realities and future challenges for the Myanmar
mining industry based on:
• More than 14 years experience in Myanmar;
• More than 20 years experience in mainland SE Asia;
• Breadth of experience from project generation through
exploration to m
ining
CSA Global
• International mining industry consultancy with offices in Perth,
Brisbane, Jakarta, London, Johannesburg, Vancouver, and
Moscow;
• Provides geological and engineering services across the
industry spectrum from regional exploration to feasibility and
mining;
• Specialist expertise in SE Asia with extensive project experience
in all the ASEAN countries.
3.
Flashback! PDAC Toronto March 2003
• First green shoots of
the 2000’s mining
boom at the largest
global mining industry
convention
• SE Asia forum – CSA
presentation on
Myanmar
• Followed apparent
liberalisation moves
in 2002
• False dawn and the
investment door
slammed shut again in
2004
4.
Flashback! PDAC Toronto March 2003
WHAT IS DIFFERENT THIS TIME?
DO RECENT CHANGES BRING A REAL OPPORTUNITY FOR DEVELOPMENT OF A
MODERN MINING INDUSTRY IN MYANMAR, OR ANOTHER FALSE DAWN?
5.
Myanmar Mining Industry - Historical
• The Golden Land – production of gold,
silver, copper, lead, etc. from ancient times
• Rubies and jade – Mogok and Hpakant
• Important trade routes between India and
China
6.
British Colonial Period c. 1824—1948
Lead, Zinc and Silver
• Bawdwin Mine and Nam Tu smelter –
1918-38; major producer of Pb, Zn, and
Ag
• Bawsaing district Pb-Ag and barite
Tin and Tungsten (SE Asia Tin Belt)
• Tenasserim – Heinda, Hermingyi, etc.;
extensive (palaeo) alluvial production,
limited hard-rock mining
• Mawchi W-Sn narrow-vein mine
Gold
• Small scale, alluvial and hard rock
• Kyaukpazat district
Oil – Burmah Oil Company
Mawchi Tungsten Mine, 2012
Bawdwin
Mine
7.
Independence & Nationalisation 1948-1988
• Post-war and post-
independence ongoing decline
in mine production from
colonial levels
• 1963 nationalisation and
socialist period; Mining
Enterprises established
• 1970’s Colombo plan/UN-aided
mapping and exploration
• Monywa – Yugoslavia-Myanmar
RTB Bor-ME1 joint venture
began operations in 1985
• Kyaukpahto Au deposit
discovered c. 1980 and
developed with Yugoslav
assistance from 1982 to 1993
• Both operations were failures
From Myanmar government website, 2003
8.
Exploration “Mini-boom” 1994-1997
• New Investment law (1988) and Mining Law
(1994).
• Mid-90’s tender-block rounds.
• Industry enthusiasm amidst the global
boom – exploration and mining interest and
investment by majors (Newmont), mid-tiers
(Ivanhoe) but mostly by juniors.
• Monywa – Ivanhoe re-opened the mine in
1998 under a 50:50 JV with ME1 as modern
heap-leach SX-EW operation producing
25,000 tpa cathode copper upgraded to
40,000 tpa in 2004
• Kyaukpahto – short-lived investment by
Newmont.
• First modern exploration in Myanmar, but
limited in scope and extent.
• Terminated by 1997-1998 global exploration
industry collapse and prolonged subsequent
downturn.
• Cyanide ban introduced
Kysintaung open-pit and leach pads, Monywa
SX-EW copper cathode production, Monywa
9.
Resources “Super-cycle” 2004—2011
• Momentum for political liberalisation
in Myanmar reversed in 2004 just as
the “super-cycle” gathered pace
• Sanctions and changes in regulations
militated against foreign investment –
e.g. Commercial Tax and Production
Sharing Contracts
• Investment effectively ceased;
Ivanhoe pulled out of Monywa in 2007
and lost the Modi Taung Gold project
• Mining Enterprise mines and projects
privatised – local companies (e.g. Asia
World, Eternal Mining) with or without
Asian or Russian JV partners
• Chinese investment focused on known
deposits, e.g. Tagaung Taung Ni
laterite, Monywa, Bawdwin, Nam Tu
slags; also Russian, Thai etc. investors
Kyaukpahto Mine, 2004
COMEX Cu 1993-2012
10.
Current Realities
• Myanmar missed the mining boom(s) and remains
almost entirely unexplored
• Requirement for Production Sharing Contracts, high
rental rates, short licence terms etc. make risk
investment in exploration commercially untenable
• Underdeveloped mining industry relative to potential
Production remains at a very low level in terms of
quantity and quality
Monywa (now Chinese-controlled) is still the only
significant modern mining operation in the country;
planned Letpadaung development and expansion
to 200,000 tpa Cu has not yet occurred
Tagaung Taung Ni project also Chinese owned
• Political change and broadly favourable 2012 Foreign
Investment Law – renewed mining investment interest
but no MIC licences issued for exploration/mining
• 1994 Mining Law still in place and can provide a
framework for acceptable “Contract of Work” based
exploration title
but more changes are needed to attract serious
explorers
Gegalaw artisanal gold mining and cyanide leaching, 2009
11.
Future – Realising the Potential?
• Irreversible political change has occurred
• New discoveries and development requires
risk investment
• Minimal past exploration means there is no
pipeline of development projects; need to
incentivise high-risk investment in high-risk
brownfields and greenfields exploration
• Attracting foreign risk investment requires
changes to the Mining Law and regulations
PSC’s, signature bonus, high rental rates
etc. v. terms that encourage exploration
dollars in the ground and new discovery
Promote high-risk investment and attract
quality technically-focused explorers
Improve Mines Department capacity to
transparently administer licensing system
Gegalaw artisanal gold mine, 2009
• Minimal past exploration enhances opportunities for shallow discovery
For what commodities? Where?
What is the real mineral potential of Myanmar and, with investment, can it
underpin a modern mining industry?
12.
Mineral Potential and Tectonic Setting
• SE Asia comprises a collage of tectonic plates
separated from Gondwana and accreted to
Asia from the Cambrian to the Cenozoic.
• Understanding mineral potential is directly
related to:
Understanding this tectonic evolution and
related metallogeny
Understanding deposit preservation
potential related to uplift and erosion,
especially for epithermal Au and
porphyry Cu systems
• Provides the basis for target belt
prioritisation
• Knowledge from the surrounding region can
be used, especially where limited
information in Myanmar
• Significant metallic deposits of Cu, Au, Zn-
Pb-Ag, and Sn-W exist within the country or
in metallogenic belts that run into the
country
Jiama Cu-Mo-Au
Chatree Au
Yulong Cu-Mo-Au
Monywa Cu
Davoy Sn-W
Bawdwin Pb-Zn-Ag
Sopokomil Zn-Pb
Kinta Valley Sn-W
Sepon
Cu, Au
Phukham
Cu-Au
Laocang Zn-Pb-Cu-Ag
13.
Gold Potential
• Permo-Triassic volcanic arc belt,
Eastern Shan State
Epithermal potential; Mae Chan etc.
in Thailand
Gold-rich VHMS; Dapingzhang (2g/t
Au), Nam Rin (Ba-Au, Thailand),
Tasek Chini (Malaysia)
• Triassic Indosinian orogeny in the
“Slate Belt”
Orogenic gold, e.g. Modi Taung,
Shwegyin alluvials, Russell Island
etc.; high grade, low tonnage
• Cretaceous collision and deformation
in the Central Myanmar Arc
Orogenic gold, Kyaukpazat, Legyin
etc. – extensive narrow-vein gold
systems; high grade, low tonnage
Modi Taung
Chatree
Kyaukpazat
Mae Chan
Dapingzhang
Nam Rin
Russell Island
14.
Gold Potential
• Palaeogene volcanic centres along the
Central Myanmar Arc
Epithermal gold
Kachin segment; Setgadone etc.
• Neogene extensional magmatism
along the Sagaing Fault zone
Epithermal and sediment-hosted
gold e.g. Kyaukpahto (>6Mt at
3g/t), Gegalaw
• Neogene transcurrent faulting and
magmatism in the Mogok
metamorphic belt (Shan scarps)
Mesothermal gold, IRG/skarn? –
Kwinthonze, Tayetkhone, Kyaikto
Epithermal potential – Tengchong-
type young volcanic centres?
Kyaukpahto
Tengchong
Setgadone
Monywa
Kyaikto
Kwinthonze
Thayetkhone
15.
Copper Potential
• Cambro-Ordovician volcanic
centres
Bawdwin polymetallic VHMS
• Permo-Triassic arc and back-arc
volcanism in the Sukothai and
Changning-Menglian belts – VHMS;
in China
Dapingzhang (c. 63 Mt at 0.8%
Cu)
Yagra (c. 1 Mt cont. Cu)
• Triassic fore-arc – Lemyethna Cu-Au
Bawdwin
Dapingzhang
Phu Kham
Phu Thep
Laocang
Dongchuan
Dahongshan
Yagra Xuejiping
Lemyethna
Nam Rin
16.
Copper Potential
• Palaeogene sub-aerial volcanic
centres along the Central Myanmar
Arc
Monywa high-sulphidation
epithermal copper deposit (early
Miocene); c. 1.88 Bt at 0.37% Cu,
Letpadaung, Sabetaung, and
Kysintaung deposits
Shangalon Cu-Au porphyry
(Oligocene)
• Kachin Arc segment; correlated
with Gangdese arc in Tibet
Jiama (Tibet; 1.17 Bt at 0.41%
Cu, 0.04% Mo, 0.1g/t Au)
• Mogok Belt Neogene transcurrent
faulting and magmatism
Minor skarn copper-polymetallic
mineralisation
Shangalon
Kachin Arc
Monywa
Jiama
17.
Zn-Pb-Ag Potential
• Cambro-Ordovician rhyolitic volcanic
centres on the western margins of
the Shan-Thai block - VHMS
Bawdwin (“silver pit”)
polymetallic VHMS(?); 1938
reserve 10.8 Mt at 22.8% Pb,
13.9% Zn, 1.05% Cu and 670 g/t
Ag – biggest global producer of Pb
and Ag before WW2
Large lower-grade ‘halo’ resource
reported by Mandalay Mining in
1997
• Potential outside the Bawdwin
volcanic centre; unrecognised
volcanic centres?
• Vein-hosted deposits in Precambrian
and Cambrian clastics
Yadanatheingyi etc.
Bawdwin
Yadanatheingyi
18.
Zn-Pb-Ag Potential
• Early Ordovician carbonate-hosted
Pb-Zn-Ag-Ba deposits over 1000 km
of strike from Kanchanaburi to
western Yunnan (Baoshan)
• Broadly “Irish-type” in a back-arc
setting?
• Bawsaing district – extensive old
barite, lead and zinc mines
• Shan State; Lufang etc.?
• Thailand - Kanchanaburi; Song Toh,
Bo Yai global resources >8 Mt at c.
7% Pb, 3% Zn and 100g/t Ag
• Thailand - Li; Phu Mai Tong barite
mine, Mae Chong Zn-Pb-Ag-Ba
deposit
• Yunnan; Shizishan, Menxing,
Dongshan etc.
Bawdwin
Long Keng
Bawsaing
Kanchanaburi
Li
Mengxing
Lufang
Yadanatheingyi
19.
Zn-Pb-Ag Potential
• Permo-Triassic back-arc volcanism
in eastern Shan State; polymetallic
VHMS in Sukothai and Changning-
Menglian belts
Laocang, Yunnan, c. 20 Mt at
4.3% Zn, 6.6% Pb, 151 g/t Ag and
0.11% Cu)
• Indosinian Triassic MVT?
Long Keng oxide Zn deposit c.
0.2 Mt at 35% Zn
• Cretaceous MVT in Thailand
Padaeng (Mae Sod) oxide Zn
deposit c. 1.7 Mt contained Zn
Dapingzhang
Long Keng
Padaeng
Laocang
Daliangzi
Huize
Yagra Jinding
Mawki
Lufang
Nam Rin
20.
Sn-W Potential
• SE Asian Tin Belt (c. 2800 km) total
estimated production c. 9.6 Mt of tin,
or 54% of the world's tin production
• Most Sn-W in Myanmar is from Late
Cretaceous Western Province granite-
related mineralisation in Tanintharyi
• Most Sn production from Mio-Pliocene
alluvial and eluvial palaeo-placers, e.g.
Heinda and offshore dredging
• Lesser production from modern
placers
• Relatively minor primary production
from Sn-W greisen and vein deposits,
e.g. Hermingyi, Kanbauk
• Tungsten-rich deposits on the eastern
side of the belt; e.g. Mawchi, Mae
Lama (Thailand)
• Unrealised primary potential – greisen
and skarn?
Pyinmana
Tengchong
Mawchi
Hermingyi
Ban Phontiou
Mae Lama
Doi Mok
Geijiu
Khao Soon
Dulong
Phuket
Heinda
Myeik
Nui
Phao
21.
Ni, Cr, PGM Potential
• Extensive ophiolite belts related to
Indian collision event; mostly
steeply dipping and dismembered
ultramafics
Tagaung Taung lateritic nickel
deposit; c. 40 Mt at 2% Ni
Mwetaung lateritic nickel deposit;
c. 36 Mt at 1.5% Ni
Relatively small and moderate
grade deposits, mainly saprolite;
high capital and power costs
• Widespread small chromite deposits
and occurrences
• Alluvial PGM’s recorded at Indawgyi,
Hukawng valley
• Jadeite at Hpakant has provided one
of Myanmar’s most valuable mineral
exports
Mwetaung
Kachin Ophiolite Belt
Indo-Burman
Ophiolite Belt
Song Da Rift
Ban Phuc
Tagaung Taung
Hpakant
Panxi Rift
22.
Bulk Commodities
Iron-ore
• No significant deposits known
• Potential for skarn magnetite exists in arc
belts and associated with tin skarns
• Enigmatic Pang Phet deposit with
reported associated Cu and U; basement
or Triassic hosted?
Manganese
• Eastern Shan state; volcanic or skarn-
related?
Bauxite
• No significant reported occurrences
Coal
• Extensive low-grade sub-bituminous coal
in western basin, Kalewa etc.
• Small brown-coal deposits in fault basins
on Shan plateau, e.g. Tigyit, Namma
Tigyit coal deposit
Coal in
western
basin
Pang Pet Fe
Mn & Fe production
In E Shan
Secondary Fe and Mn;
Primary skarn?
23.
Operating Framework
• Common Law System
• All minerals vested in the state; royalties are not fixed (precious metals 4-5%,
base metals and ferrous metals 3-4%, negotiable)
• 1994 Mining Law set the framework for individual contracts which included:
• DGSE technical support at the exploration stage
• Principal terms and conditions of production JV with one of the Mining
Enterprises – equity participation with cost recovery
• Prospecting, exploration and production periods (total up to 10 years)
with expenditure commitments and progressive relinquishment
• Investment Law sets framework for foreign investment; approval through
Myanmar Investment Commission
• Production Sharing Contracts, high level of ‘signature bonus’ and ‘dead rent’
and short licence terms a major disincentive to risk investment in exploration
• Local support or participation essential in states and ethnic areas
• Currently possible to acquire licences through local JV companies; no MIC
licences have been issued
• New Mining Law – when and what??
• How will foreign JV’s with non-state companies be accommodated?
24.
Data & Services
• Improved UTM topographic map coverage at
1:50,000 from modern aerial photography
• Geological mapping limited in extent and
quality
• Almost no useful exploration data such as
geochemical datasets or airborne geophysics
• Limited technical professional experience
especially in younger generation
• Low level in-country exploration services,
drilling and geophysics; increased foreign
involvement in service companies
• Services and equipment can be imported
• Local service scope and availability will
quickly improve if foreign investment in
exploration picks up
Geosan LLC Mongolian geophysicists
with CMC team, Sagaing Project, 2005
Suntac diamond drill-rig, Legyin, 2009
25.
Logistics
• Poor infrastructure, but reversal of long-
term decline has begun, and challenges can
be overcome
• Unreliable power supply, but substantial
energy resources and improving supply
• Difficult communications, but improving
rapidly especially mobile coverage and
internet access
• Security restrictions are much reduced, but
still an issue in some areas
26.
Opportunities and Challenges
• High geological potential for a number of commodities/deposit types, notably
Epithermal and porphyry Cu-Au in arc belts
Volcanic- and sediment-hosted Zn-Pb-Ag massive sulphide
Sn-W greisen and skarn
• Potential, especially for gold and copper, can be misunderstood, e.g. should
not be compared directly with Indonesia
• Improved geological and metallogenic understanding can be applied to
support effective targeting models in ground selection and exploration
• Paucity of detailed geology, maps or research, and limited understanding of
several significant deposits and districts
• Lack of past exploration implies opportunity for rapid discovery of
outcropping orebodies using well-targeted basic techniques such as stream-
sediment geochemistry and airborne geophysics
• No data from past exploration to follow up or guide effective approaches
• No regional-scale government geochemical or geophysical data
• Artisanal gold operations provide a key targeting criterion in unexplored areas
27.
Opportunities and Challenges
• Improving political and investment environment
• Limited understanding of the mining industry and incentivisation of exploration risk
in bureaucracy and government
• Bureaucracy supportive of mineral exploration investment
• Mines Department is understaffed, under-resourced, and lacks experience in
managing and regulating an active exploration and mining industry
• 1994 Mining Law has provided the framework for exploration and development
contracts providing a pathway to development with reasonable terms
• Subsequent regulations are very unfavourable for exploration risk investment, e.g.
PSC’s, high dead-rent, signature bonus, etc.
• No ‘one-stop-shop’ – multiple departmental approvals required, central and regional
and local government
• New Investment Law favourable for foreign investment
• TERMS OF THE NEW MINING LAW REMAIN UNCERTAIN BUT WILL BE CRITICAL IN
DETERMINING THE FUTURE FOR MYANMAR’S MINING INDUSTRY
• Role of states is a crucial uncertainty linked to substantive political issues
• Environmental and community framework also remains poorly defined
• EITI application is a positive indication of government intentions
• Improved security situation and access in most peripheral regions
• Problems and tensions remain in some areas
28.
Opportunities and Challenges
• Profusion of local businesses investing in mineral exploration as potential partners
for foreign investors
• Limited understanding of the exploration and mining business and a business
environment and practices distorted by years of a military-controlled economy
• Multiple stake-holders wanting a slice of the pie, especially in the ethnic regions
• Unrealistic perceptions of value
• Improving infrastructure and communications
• Access in large parts of the country is slow and difficult
• Unreliable power supply, but substantial energy resources and improving supply
• Improved UTM topographic map coverage at 1:50,000 from modern aerial
photography and availability of high resolution satellite imagery
• Availability of geologists and workforce with a strong work ethic enthusiastic to learn
and grasp opportunities; widespread use of English
• Limited pool of commercially-focused technical experience, especially in mining
• Service companies in country can provide support in geology and exploration,
including limited geophysics and drilling
• Service industry still at a low level, but ability to grow quickly
29.
Flasback! PDAC Toronto March 2003
WHAT HAS CHANGED TEN YEARS LATER?
30.
Flasback! PDAC Toronto March 2003
WHAT HAS CHANGED TEN YEARS LATER?
31.
Opportunity for Myanmar – Closing Remarks
• Myanmar has the geological potential to develop a significant mining industry
• HIGH-RISK INVESTMENT IN EXPLORATION IS NEEDED IF MINING IS TO SERIOUSLY
CONTRIBUTE TO THE SOCIO-ECONOMIC DEVELOPMENT OF MYANMAR; THIS
REQUIRES AN INVESTMENT REGIME THAT REWARDS RISK
• An investment regime that encourages risk investment in exploration combined
with effective social/environmental regulations will attract serious exploration and
mining companies
• Serious players may include large, mid-tier and well-managed technically-
competent junior companies
• Reputable companies will follow industry-standard best practice and understand
the need to have a ‘social licence to operate’; this will deliver the best outcome in
terms of economic return, social and environmental impact
• JVs with local companies and use of local Myanmar service companies will help
build a local responsible mining industry
• Undiscovered and undeveloped mineral deposits are unrealised assets until they
are developed and contribute to the economic and social development of the
country
• MINES WILL NOT BE DEVELOPED IF ECONOMICALLY UNREALISTIC PROCESSING
AND REFINING REQUIREMENTS ARE DEMANDED
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