Table Three: Natural Resource Investment Patterns in Ethnic States & Border Regions
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Working Document Table Three: Natural resource investment patterns in ethnic States & border regions State or Existing investments Potential Investments Key issues relating Region to investment in the natural resource sector Chin State Mining Mining Minerals currently being explored in Chin State Political parties and CSOs in Mwe Taung Nickel Mine, Tiddim are: chromite, manganese, and limestone. Chin State have raised > Nickel (ferronickle alloy) mine at MweTaung, concerns regarding the Mwe Tiddim Township in an ‘advanced exploration’ Tuang mine including: the stage.i The original feasibility study was Forestry lack of transparency in initiated in June 2012 under agreement project development, a between the Department of Geological Survey Timber revenue-sharing & Mineral Exploration and NORINCO.ii Wood is an important local fuel and building arrangement that does not > The mine is now being developed as a joint- material. There is the potential to expand provide adequate benefit to venture; with the state-owned Myanmar commercial timber exploitation. Timber Chin State, and lack of any Mining Enterprise #1 holding a 20% stake and harvesting through community forestry hold EIA/SIA processes.viii the foreign investors holding an 80% stake.iii potential.vi Some areas of Chin State are > The foreign stake is held by NORINCO (North suitable for teak and other hardwood For an overview of Mining Investment Co. Ltd.) (China) and Zijin plantations. opportunities for natural International Mining Group (Hong Kong). resource development see > Zijin IMG is a fully owned subsidiary of Zijin the Chin State Development Working Document Mining Group, a massive Chinese state-owned Pine Resin extraction Plan document created by mining company.iv There has been some interest from Japanese MMIID in cooperation with > The initial investment is $50 million. companies in re-initiating the pine resin the Chin State government.ix > Once operational the expected annual profit industry in Chin State which ceased operation is $25 million, with $500,000 (2%) being in the 1980s.vii allotted to the Chin State government.v > Coal from the Kalewa mine in Sagaing is to be used to power the mining operations and for Non-Timber Forest Products nickel smelting. NTFPs that hold potential for commercial development include: orchids, Elephant Foot Yam, and other medicinal plants. Hydropower There are a number of dams generating hydropower in Chin State: Zalui, Tongva, Agriculture Ngasitvar, Paletwa, Namhlaung Creek, Laiva, The expansion of plantation agriculture - Htweehsaung and Chichaung. including tea bushes and fruit-bearing tress - has been proposed. Hydropower and electricity generation The state capital Hahka is connected to the national grid, but much of the state is not. Most towns and village have limited access to electricity and often depend on village-level micro-hydro. There are opportunities to expand the use of small-scale solar and wind power generation. Working Document Kachin Mining Hydropower State > Jade at Hpakant. Tumpang Hka Chaung (6,000 kW) micro-hydro Illegal and informal logging > Amber at Hukawng valley. dam is being developed to supply electricity to and timber smuggling is a > Gold at Shadusuik, Wakan-Tanaing, and Myitkyina and Waing-Maw towns. major issue in Kachin State. Ngagyan. According to some reports > Platinum at Shadusuik , Wakan-Tanaing, half of all timber is being Ngagyan, and Namma- Kangon Mining felled illegally/informally, > Nickel at Indawgyi. and the majority of timber be > Rare earth at Ma Ja Yang. Kathaing Taung iron ore deposit exported from Kachin State is > Lead, zinc and silver at Panwa. > Iron Ore deposit in development at Kathaing being done > Other minerals: ruby, iron, copper, Taung, Hpakant Township by Kunming illegally/informally.xii molybdenum, and limestone.x Henglong Architecture Mechanical Construction Co. Ltd. (China) and DGSE. > Total reserve estimated to be 223 tons. Agriculture > Project is open to proposals for joint-venture Rubber, sugarcane and banana plantations with Mining Enterprise #3. exist in the eastern part of the state. Ngagyan, Indawgyi platinum deposit > Platinum (group minerals) deposit Timber development at Ngagyan, Indawgyi, Monyin Timber extraction is taking place on a massive Township by DGSE. scale across Kachin State, including hardwoods > Prospecting and exploration drilling took such as teak. place from1990-95. > Estimated reserves of 1.6 million tons. > Project is currently open to proposals for Hydropower joint-venture with Mining Enterprise #3. Large-scale hydro Working Document > Buga Power Company dam electrifying Myitkyina. Oil and Gas > Myitsone dam (currently suspended). Potential for petroleum extraction in the > Other hydropower generation dams: Tarpain, Hukaung sedimentary basin.xi Chibwe, Pashe, Lakin, Phizaw. Small-scale hydro >There are currently three small-scale dams contributing revenue to the state fund. Kayah Mining State > Antimony at Konsut and Peinchit. Deforestation is a growing > Tin-tungsten deposit (Hydrothermal quartz issue in Kayah State. Control vein-type) at Mawchi (Australian company of the timber trade has been Eumeralla Resources and MERG in a 70-30 joint a contentious issue between venturexiii). the Myanmar government > Limestone, marble and terrazzo are extracted and EAOs in the past.xviii in various areas. The presence of landmines remains a concern.xix Timber > Kayah State contains large areas of forest cover, and timber extraction operations are taking place across the state. > The entire Township of Mese is designated as ‘forestland’ and there is considerable logging taking place by three companies.xiv > Kayah state has teak and other hardwoods, Working Document although these have been graded as ‘poor’ by the Myanmar Timber Merchants Association.xv Agriculture Rubber and palm oil plantations Hydropower Lawpida (Lawpita) Hydropower Project > Dam is on the Beluchaung River in Kayah State, but a large portion of the reservoir is located in Shan State. > Consists of the Mobye Dam, Lawpida Power Plants #1 and #2, and the Datawcha Dam.xvi > Provides power to Yangon. > It was the first large-scale hydropower dam in Myanmar. > Constructed in 1954 with financial support from Japan as a war-reparation. Japanese support for the project has continued over the years; for example the #2 power plant was upgraded in the early 2000s with support from JICA.xvii Kayin State Mining Oil and Gas > Gold deposit at Shwegyin mine. > Potential for development in the Mepale and Working Document > Lead/zinc/silver deposit at Mawhki. Mawlamyine sedimentary basins.xx > Antimony, limestone, and tin/tungsten are > Exploration rights for onshore Block PSC-R being extracted at various locations. held by SNOG and UPR (Singapore).xxi Hydropower Hydropower > Shwegyi hydropower station. > Hatgyi Dam on the Salween River. Timber Teak and other timber harvesting is taking place across the state. Agriculture Rubber plantations Mon State Mining Mining > Antimony deposit at Kadaik and Tabyu. Sand mining (the sand contains high-grade > Nickel deposit at Kayukway. concentrations of rutile, ilmenite, zircon and > Tin-Tungsten deposit at Padatchaung. monazite) in development at Wegalaung, > Gold and limestone are being extracted at Yethataung and Chaungzon Island tenements various locations. (54.8 square km in total) by Australian-owned (with an unknown private investor) Singapore- based AML (Asia Mining Limited) Co. Ltd. The Agriculture exploration and mining license agreements Rubber, palm oil, cashew, and betel nut signed directly with GoM so not a joint-venture plantations. (appears to be the first fully-foreign-owned Working Document mining project in Myanmar). The projected value of the minerals is over $2 billion. The costs to develop the production facilities will be $60 million. Expected to employ 30-40 locals at each of the three locations. Wages will be double the current standard. Production set to commence at the end of 2015.xxii Oil & Gas > Payagon onshore natural gas field has proven exploitable reserves.xxiii > Mawlamyine and Moattama Offshore sedimentary basins. Wind Energy There is potential for wind generation along the coastal strip facing the Andaman Sea where there is a southwesterly wind for 9 months and northeasterly wind for 3 months. Rakhine Oil & Gas Oil and Gas xxiv State > Shwe Gas Field (offshore natural gas). > Significant potential exploitable onshore oil reserves, and exploitable natural gas reserves in the Moattama Offshore sedimentary Mining basin.xxv > Nayputaung mine Nickel deposit at > Exploration rights for onshore “PSC-Block L” Working Document Maungdawnanmadaw, Hkakyintaung, and are held by ESSAR (India).xxvi UkinTaung. > Exploration rights for onshore Block “PSC-M” > Chromite, limestone, marble are being were granted to a consortium in October extracted at various locations. 2014.xxvii Hydropower Mining Small-scale hydropower dams at Laymyo > Marble mine in development at Nayputaung, Chaung, Thahtay Chaung, Am Chaung, and Taungkoke Township by Simco Song Da Joint Saidin. Stock Company (Vietnam). > Sand mining under exploration (for sand containing high-grade concentrations of rutile, ilmenite, zircon and monazite) at undisclosed locations along Rakhine coast by Australian- owned (with an unknown private investor) Singapore-based AML (Asia Mining Limited) Co. Ltd.xxviii Wind Energy There is potential for wind generation along the coastal strip facing the Bay of Bengal where there is a southwesterly wind for 9 months and northeasterly wind