Procedures for the Foreign Investment in Mining Sector

In the Republic of the Union of Myanmar

1.                 Foreign company has to send request letter for a courtesy call to the Union Minister for the Ministry of Mines through the respective Embassy in Myanmar to Ministry of Foreign Affairs to the Ministry of Mines officially.

2.       The Union Minister or responsible personnel from the Ministry will meet the company. At the meeting the investor can discuss the opportunities of investment in Mining sector at Myanmar and mention the interest mineral and area to be implemented.

3.       Field visit will arranged if requested by the investor or company and technical discussion will be made for the assistant of side visit.

For the field site visit the following documents are required:

( 1 )        Proposal letter(submit in 2 weeks ahead of the trip schedule)

( 2 )        Tentative field trip schedule

( 3 )        Recommendation letter from the Embassy of the concerning country

( 4 )        Letter of undertaken for each personnel of the group

( 5 )        Individual Passport copy

4.       After the field visit,the investor decide to invest in Myanmar,          a proposal or letter of intention must be submit to the Ministry of Mines and copy to Department of Geological Survey and Mineral Exploration(DGSE). Proposal should clearly mention the area with coordinates, kinds of mineral, propose activities (prospecting, exploration, feasibility study), capital investment, technical know how, methods apply for operation, duration and general terms preferred by the company.

5.       Mineral prospecting, exploration and feasibility study are concerned to DGSE.

6.       The following documents are required 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 of programme

(g)     Map of the proposed area with coordinates.

7.       After the approval of the Ministry of Mines, the investor shall have to negotiate with DGSE for the preparation of the Agreement Draft. DGSE will provide the Agreement Draft model which is already accept by the Ministry and all the information about financial matter.

8.       The investor prepares the Agreement Draft and submits to DGSE, which should consist of Signature Bonus, Dead Rend, Performance Bank Guarantee and Minimum expenditure etc.

9.       DGSE will submit the Agreement Draft to the Scrutinizing committee of the Ministry of assessment.

10.     After the approval from the Scrutinizing committee DGSE will submit to the Ministry and from Ministry it will send to the Union Attorney General Office and the Office of the auditor General of the Union for their recommendation.

11.     At this stage the company needs to apply the following recommendation  documents;

(a)     Recommendation letter from concerning State/Region Government

(b)     Recommendation letter from Township administrative Department

(c)      Recommendation letter from the Township Forestry Department

(d)     Recommendation letter from Township Land Record Department

12.     After the completion of all the require recommendation documents the proposal and the Agreement Draft will send to the Myanmar Investment Commission (MIC).

13.     While submitting to the MIC the company shall has applied for the company registration to the Department of Investment and Company Registration under the Ministry of Economic and National Planning.

14.     After the approval of the MIC it will send to the Cabinet and after the approval of the Cabinet MIC will issue the Investment Permit.

15.     DGSE and the Investor or the Company will make singing on the Agreement and the Minister of Mines will issue the respective Prospecting, Exploration, and Feasibility study Permit.

16.     The company shall have to conduct the work programme within a month.

17.     If the company wants to extent the period, submit prior in 3 months before the termination.

18.     The company must return but all the permits issued by MIC and the Ministry of Mines within a month after the termination of the Agreement.

19.      To proceed for the production the company has to contact to the concerning enterprises.