Monday 30 December 2013

Mining industry operated without MIC’s permission

YANGON—Mining operations, including exploration for jade and gold, have been carried out in Myanmar without permission from the Myanmar Investment Commission (MIC), a Commission source says.

The MIC source adds that the mining exploration was now being conducted with permission under the country’s mining laws.

“For foreign investment, we have criteria before issuing a mining permit. But there are two stages. Some industries submit a proposal to the MIC to approve mining operations by allowing permission through foreign investment or Myanmar citizenship laws. For example, in hotel services, there are many hotels and some submit proposals to the MIC to run hotel services. But others don’t submit those proposals,” said Aung Naing Oo, director-general of the MIC.

“The investment law is an optional law. It is not a mandatory law that must be obeyed, like the Immigration Law. For example, every citizen must observe the environmental conservation law. However, the nature of investment law is optional. As for the mining sector, some mining companies have submitted proposals to the MIC. But for some projects, such as jade exploration in Pharkant Township, Kachin State, and gold mining, the companies did not submit proposals. These industries must operate under the mining law.”

He added that the MIC has told some businessmen that if they want to operate in the mining industry, they will need to conduct an Environmental Impact Assessment (EIA) for their projects.

“We look at the EIA’s result and then we issue the work permit. If the EIA’s result is bad, we don’t give the permit,” said Aung Naing Oo. “Later, we check out the technical methods used in the mining operations. If their technical methods are harmful to the environment or if their exploration of the natural resources involves extreme extraction, we do not hand out the permits for those reasons. We used to strictly securitize the proposals and issue the permit only if the projects had cleared these hurdles. We have heard that most gold mining companies are now using heavy machinery. But the industries are operating without the MIC’s permission.”

Concerning the hydro projects, some have been postponed because of the EIA policy while others have been suspended due to other issues affecting the regional situation. Those projects that have been postponed are not of concern to the MIC.

“In Myanmar, gold mining is carried out in the areas of the Nantdagon, Mansi and Manket forest reserves located in upper Myanmar. The gold digging has left large holes in the area. During the rainy season, those holes fill with water like a creek and then the water from the holes flows into the river near the villages. And so those who drink the water from the river face real health hazards. The region combines the Mu, Ayeyawaddy and Chindwin rivers. The water is polluted due to the chemical products from gold digging. So, the government should allow the permit after addressing the environmental issues. They especially need to pay extra attention to the mining industry,” said Aung Naing Oo.

source: Eleven Myanmar

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