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This High-Potential Nation Just Got A Brand New Mining CodeDave Forest Great start to the year for one of the world’s best up-and-coming mining spots. Myanmar. Late in December, lawmakers in the country signed new amendments to the national Mining Law which look set to make this high-potential nation a more attractive target for foreign investment. One of the biggest challenges faced for mining contracts in Myanmar has been production sharing — which was generally included as a standard term, requiring operators to surrender up to 30% of output to the government. That’s of course out of line with most mining jurisdictions globally. With production sharing generally being applied to oil and gas projects, but not minerals operations. Recognizing this fact, Myanmar’s new Mining Law amendments propose that the government can instead elect to take equity interest in projects rather than production sharing. Details on such participation are still to be finalized, but it appears the government will consider contributing to project funding in exchange for its equity share. Another key amendment is an extension to terms for mining licenses. With large-scale projects now being offered tenure of up to 50 years — very much in line with global standards. The new amendments fix royalties at between 2% and 5%, depending on the target mineral — which again, looks very regular against royalty rates in major mining nations. The government further said it will be reviewing exploration permit sizes and license fees to ensure they are internationally competitive. All of this makes it look like mining licenses are going be available on attractive terms within the country, possibly for the first time ever. A fact worth noting for project developers — given Myanmar’s proven potential for world-class deposits of copper, gold, silver, lead, zinc, tin, tungsten, jade, rubies, and other commodities. Myanmar’s Ministry of Mines now has 90 days to draft new mining regulations that take account of the revised Mining Law. Watch for these being released sometime in April to get full details on this unfolding opportunity. Here’s to new times, ### Dave Forest The information provided in this newsletter is based on the independent research of Dave Forest and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade any securities or commodities named herein. Information contained in this newsletter is obtained from sources believed to be reliable, but is in no way assured. All materials and related graphics provided in this newsletter and any other materials which are referenced herein are provided “as is” without warranty of any kind, either express or implied. No assurance of any kind is implied or possible where projections of future conditions are attempted. Readers using the information contained herein are solely responsible for verifying the accuracy thereof and for their own actions and investment decisions. Dave Forest does not make any representations about the suitability of the information delivered in this newsletter or any other materials that are referenced herein for any purpose whatsoever. The information contained in this newsletter does not constitute investment advice and Dave Forest is not registered with any securities regulatory authority to provide investment advice. Readers are cautioned to consult with a qualified registered securities adviser prior to making any investment decisions. The information contained in this newsletter has not been reviewed or authorized by any of the companies mentioned herein. To subscribe to Pierce Points please click here: www.piercepoints.com Copyright © 2016 Pierce Points 321gold Ltd |
