MYANMAR’S mineral exports have plummeted down by more than 45 per cent between 1 October 2021 and 4 February 2022 of the current mini-budget period (Oct 2021- Mar 2022).
The value of Myanmar’s mineral exports has drastically sunk to US$203.95 million as of 4 February 2022 since 1 October 2021, reflecting a severe drop of $196.6 million as against a-year ago period, the Ministry of Commerce’s data indicated.
The mineral exports hit over $373.76 million in the corresponding period of last FY.
The coronavirus related disruptions led to the slump in mineral exports. The heightened COVID-19 measures also shut down the events like gem emporium and expo last year, a trader said.
Additionally, Lonkhin, Phakant, Mawlu and Mawhan gem and jade lands in Kachin State have been suspended from 1 October 2021 to March-end 2022 with a view to supporting sustainable resource extraction, and ensuring safe and efficient operation of jade and gems mines, according to Myanmar Gems Enterprises.
So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, mostly in Mandalay and Sagaing regions, according to the Ministry of Natural Resources and Environmental Conservation.
Due to limited extraction of natural resources, exports of forest products and minerals had dropped significantly in the previous years.
Permits for mining blocks were suspended in 2016, but after a period of two years, Myanmar’s mining sector has now been opened to local and foreign investors, according to the ministry.
Under the new regulations, foreign firms can invest in large blocks which cover up to 500,000 acres (about 202,000 hectares), while local firms can invest in all kinds of blocks.
Investors can seek permit to mine for minerals such as gold, copper, lead and tin. The permits cover prospecting, exploration, and production.
Myanmar’s mineral exports touched $895.6 million in the previous FY2020-2021, showing a significant drop of $975.2 million compared with the year-ago period, according to data from the Ministry of Commerce.
About 80 per cent of mineral products are shipped to external markets through maritime trade, while 20 of them are sent to neighbouring countries through border trade channels.
KK/GNLM
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