Since 2015, Myanmar’s mining sector has undergone a period of legal reform and rapid transformation.
On 24 December 2015, the Ministry of Natural Resources and Environmental Conservation (“MONREC”) passed the amendments to the Myanmar Mines Law 1994 via the promulgation of Law № 72/2015 (“Mines Law Amendments”). On 13 February 2018, the underlying subsidiary legislation was enacted under Notification № 13/2018 (“New Mines Rules”), which repealed the previous Mines Rules enacted in 1996 (“Mining Law Reforms”).
Last week, Australian mineral company, PanAust, announced that it had been awarded three new licenses allowing for the prospecting and exploration of gold and copper in Myanmar. The three new licenses were approved by the Myanmar Government on 21 June 2018 and are the first licenses to be awarded under the New Mines Rules.
The Myanmar Government has announced that it will be keeping a close watch on environmental compliance for all new mining license holders issued under the New Mines Rules. We note this is in line with best international practice.
We remain very optimistic about Myanmar’s Mining Law Reforms. The issuance of the first three licenses to PanAust is a step in the right direction and should encourage other mining companies to follow suit and start investing in Myanmar’s largely untapped mining sector.
Through our office in Yangon, Duane Morris & Selvam advises corporations on investment, business and regulatory processes in Myanmar. For further information, please contact Mr Krishna Ramachandra (kramachandra@duanemorrisselvam.com), Ms Babita Ambekar (bambekar@duanemorrisselvam.com), Mr Rory Lang (rjlang@duanemorrisselvam.com) or Ms Bei Wang (BWang@duanemorrisselvam.com) or visit www.duanemorrisselvam.com. Duane Morris & Selvam is recognised as a leading law firm for Myanmar related Corporate and M&A work – The Legal 500 (2018).
