Mining Myanmar

Mining Myanmar 2017 will return for its 5th edition taking place 12th to 14th October at MEP at Mindama, Yangon. Last year, Mining Myanmar attracted 183 exhibitors from 21 countries, 5 international pavilions and 3,402 trade visitors reaffirming Mining Myanmar’s position as the largest, leading and most international industry trade event for Myanmar’s mining and minerals recovery industries.

Myanmar’s potential for growth and development is unprecendented. With five years of growth in foreign trade and investment already under its belt, and with new government in place, Myanmar’s infrastructure is long overdue rapid expansion, development and modernisation. New and upgrading projects are in the pipeline and have started creating high demand for power, machines, new technology and materials, new skills and best practices.

Sanctions have been lifted and Myanmar will increasingly become more and more integrated into the regional and global economy, and continue to prove an attractive destination for increasing amounts of both local and foreign investment. Economists predict Myanmar’s economy to grow between 6.15 to 8.2% pa over the coming years. Myanmar has a bright investment and development future as one of Asia’s shining stars.

Mining Myanmar is supported by the leading industry associations including Myanmar Federation of Mining Association (MFMA), Myanmar Construction Entrepreneurs Association (MCEA), The Union of Myanmar Federation of Chamber of Commerce (UMFCCI), Myanmar Industries Association (MIA), Myanmar Engineering Society (MES), Renewable Energy Association of Myanmar (REAM), Yangon Electricity Supply Corporation (YESC) and strongly acknowledged by the Ministry of Resources and Environmental Conservation, Ministry of Commerce, Ministry of Construction and Ministry of Electric Power & Energy.

Mining Myanmar is co-located with Building & Construction Myanmar and Electric Power & Renewable Energy Myanmar. As these exhibitions link these 3 important industries together for the benefit of exhibitors, visitors and industry for Myanmar’s emerging economy.

More in-depth at the following link: http://www.miningmyanmar.com/mining/2017/en/index.asp

The Ruby Mines of Myanmar

Myanmar, formerly known as Burma, counts on abundant natural resources and the mining industry plays a primary role in the economy. The country holds enormous mineral potential which will make mining a significant driver of the country’s economic development. Precious metals (gold, platinum and silver), gemstones (ruby, sapphire and jade), tin and tungsten, copper, lead, zinc, nickel, chromium and antimony are important minerals that you can find in the country.

This analysis focuses on the so called “Burma Ruby”. Rubies of Myanmar have been considered the finest quality in the world. The most famous territory for Myanmar Rubies is the Mogok Stone Tract, in northern Myanmar, 200 kilometers away from Mandalay; and secondly Mong Hsu, about 250 kilometers east of Mandalay. Both places are known to produce rubies but in Mong Hsu rubies are lower in quantity and quality compared to those you can find in Mogok. Some smaller ruby mining areas are Nawarat and Namhsa in Shan State, Sagyin (near Mandalay), Thabeitkyn and Kathe along the Irrwaddy River west of Mogok, Namya in Kachin State, near the Chinese border, and others. These lands have not only rubies but also sapphires, spinel, peridot, aquamarine and a variety of other semi-precious stones.

According to Ministry of National Planning and Economic Development, in the fiscal year 2015 – 2016, Myanmar produced as much as 31 million kilograms of jade, 0.17 million carats of ruby, 0.74 million carats of sapphire, 0.29 million carats of spinel, 0.34 million carats peridot and 1.63 tons of pearl[1].

Mogok is considered the “Valley of Rubies”, it is legendary for the quality of its gems, especially for the “pigeon blood” rubies and sapphires. This area is mainly underlain by a series of undifferentiated high-grade metamorphic rocks.

[2]

 

In particular, Burma ruby is the rarest and most valuable member of the corundum family. Color is the first factor to consider in determining the value of a Burma ruby. Ruby colors range from pink red ruby to a “pigeon blood” red that is considered the finest color for ruby.

[3]

Photographs showing ruby-bearing marbles (A and B)  at Mogok, Myanmar

 

Ruby is not only a mineral but it is a fundamental part of the culture and history of the country. There is no doubt about the contribution that Burma rubies have made to society and economy as well. In fact, nowadays 90% of the world’s rubies come from Myanmar.

In Mogok valley, getting gems from the ground is incredibly hard work. Huge bulldozers now plough deep holes in the earth but even today it is raw manpower that achieves the final product. The most common method of recovering gems is in the open-pit mines. Extraction requires high-pressure water cannons, sometimes four firing at one time. The water washes the gem gravel that is pumped into circular stone pits, where the heavy waste is trapped in a series of long sluices from which rubies are recovered by hand. Lighter waste is washed into the valley below, where the residue is picked over further by hand[4]. 

However, production of Mogok has been in decline and, as is well known, an increasingly large number of fine quality rubies have been mined in East Africa.

In addition to that, environmental degradation and social impacts have increased in recent years due to foreign investment and the use of modern technology in mining and processing methods to increase productivity.

Concerning the legal aspect, the first mining legislation in Myanmar was the Upper Burma Ruby Regulations, issued in 1887, while the latest one was promulgated in 1995, the Myanmar Mines Law, which includes all the previous laws. All naturally occurring minerals found either on or under the soil of any land and in the continental shelf are deemed to be owned by the State. With this new law, all mining activities are administrated by the Ministry of Mines. It is intention of the Ministry of Mines not to make new investment by itself but encourage foreign investor to make them. The Ministry of Mines is prepared to offer new areas or deposits for new projects or to provide raw materials, and existing facilities as its participation in the joint ventures. These participations would be valued on fair and equitable basis so that the foreign investor may receive reasonable return and Ministry may enjoy mutual benefits[5].

In the past, it was very difficult to have access to gemstones resources in Myanmar due to strict control by the government. For this reason, gemstones were illegally taken away from the mine. In fact, the Myanmar Mines Law has been modified many times. Today, thanks to the new regulations, Burmese gemstones can be accessed by local people and foreigners through various channels:

  • Myanmar Gems Emporium. Three times a year this auction is held at Naypyidaw by Myanmar Gems Enterprise. Gemstones in these auctions include rough and polished ruby, blue sapphire and semiprecious stones, as well as jade and pearl from mines owned by the government and private companies. Each year there are over 4,000 buyers in the auctions;
  • Local Gemstone Markets. In this market, there are over 100 small shops selling gemstones including ruby, blue sapphire, jade and pearl;
  • Myanmar International Gems, Jewellery and Watch Expo. This exhibition is held twice a year, by the Union of Myanmar Federation of Chambers of Commerce and Industry and the Myanmar Gems and Jewelry Entrepreneurs Association;
  • Direct trading with Mine Owners

 

Expectations are growing for Myanmar’s mining sector and economy, the country is becoming a global focal point for investments and business. 

 

References:

1.      Tzen-Fu Yui, Khin Zaw, Chao-Ming Wu, A preliminary stable isotope study on Mogok Ruby, Myanmar, in Ore Geology Review, 2008, n. 34;

2.      Nicholas J. Gardiner, John P. Sykes, Allan Trench, Laurence J. Robb, Tin mining in Myanmar: Production and potential, in Resources Policy, 2015, n. 46;

3.      Kyi Thun, Sustainable Mining in Myanmar, in Applied Environmental Research, 2014, n. 36;

4.      ASEAN gem and jewelry review, 2017, n.1;

5.      Ministry of Natural Resources and Environmental Conservation, http://www.mining.gov.mm/Minister_Office/3.Minister_Office/details.asp?submenuID=4&sid=59;

6.      https://www.gia.edu/ruby-mines-burma-reading-list;

7.      https://en.wikipedia.org/wiki/Mogok;

8.      http://www.amnh.org/explore/news-blogs/from-the-field-posts/ruby-land-the-gems-and-geology-of-myanmar-s-mogok-stone-tract/;

9.      http://www.dailymail.co.uk/home/moslive/article-1312382/The-curse-blood-rubies-Inside-Burmas-brutal-gem-trade.html;

10.  http://www.myanmarinsider.com/mandalays-ko-thwe-rubies/;

11.  http://asia.nikkei.com/Politics-Economy/Policy-Politics/Myanmar-to-ramp-up-gem-exports-post-sanctions;

12.  http://www.jewelryindustrysummit.com/responsible-jewelry-stories/2017/1/7/step-by-step-myanmar-gem-sector-emerges-from-isolation-and-us-sanctions.



[1] ASEAN gem and jewelry review, 2017, n.1, p. 2

[2] http://www.myanmar-tour-packages.com/tours/Discovery_of_Mogok_Valley_of_Rubies_3_Days_2_Nights.html

[3] Tzen-Fu Yui, Khin Zaw, Chao-Ming Wu, A preliminary stable isotope study on Mogok Ruby, Myanmar, in Ore Geology Review, 2008, n. 34, p. 194

[4] http://www.dailymail.co.uk/home/moslive/article-1312382/The-curse-blood-rubies-Inside-Burmas-brutal-gem-trade.html

[5] http://www.mining.gov.mm/Minister_Office/3.Minister_Office/details.asp?submenuID=4&sid=59

[6] ASEAN gem and jewelry review, 2017, n.1, p. 3