South East Asia Mining Report 2017
BMI View: Despite the rich deposits of untapped minerals on offer, we believe South East Asia's miningsector will struggle to fulfil its potential over the next few years. China's economic slowdown will remove acrucial outlet for raw material exports in the region and, more importantly, will impact the profitability ofmining ventures, with high start up costs likely to deter new investment. While states such as Myanmar havemade strides to relax the regulatory environment to encourage increased private sector investment,substantial obstacles remain across many parts of the region, including high levels of corruption andlimited infrastructure. As such, many parts of the region continue to be perceived as frontier markets as faras mining activity is concerned.
Latest Updates And Developments:
Myanmar: In January 2017, the Mines Rules, which will essentially provide the fine print detailsto supplement the amended mining legislation, were drafted and sent to the government for review. Longawaitedrevisions to the 1994 Mining Law were approved by former President U Thein Sein'sadministration in December 2015. The overhaul included changes to profit-sharing arrangements betweenthe government and companies, the types of mining permits available - including adding medium-scaleproduction, the duration of licence tenures, and penalties. It also mandates environmental managementand land rehabilitation plans, and allows for joint ventures with foreign firms. But the amendmentscannot be enforced until the more detailed regulations are finalised.
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