Myanmar mineral exports decrease by over 50% this FY

Myanmar’s mineral exports climbed down by more than 50 per cent in the current financial year 2020-2021.
The value of Myanmar’s mineral exports drastically sank to US$828.156 million as of 17 September 2021 since 1 October 2020, reflecting a severe drop of $911 million as against a year-ago period, the Ministry of Commerce’s data indicated.
The mineral exports hit over $1.8 billion in the corresponding period of last FY.
The coronavirus-related disruptions led to the slump in mineral exports this FY. 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 gems and jade mines in Kachin State will be temporarily 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 the Myanmar Gems Enterprise.
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 the 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. The Myanmar Mines Law was enacted on 24 December 2015, but the law came into force when the rules were issued on 13 February 2018.
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 a permit to mine for minerals such as gold, copper, lead and tin. The permits cover prospecting, exploration, and production.
Myanmar’s mineral exports have shown a marked increase in the previous FY2019-2020, touching $1.87 billion, an increase of $405.48 million compared with the year-ago period, according to data from the Ministry of Commerce.
Oil and natural gas are included in the list of major export items of Myanmar. About six per cent of the country’s total export earnings come from the sale of natural gas. About 80 per cent of mineral products are shipped to external markets through sea trade, while 20 of them are sent to neighbouring countries through border trade channels. — KK/GNLM