Debate surrounds possible national minerals exchange

Myanmar is seeking to open a domestic exchange for its minerals, chiefly gold, the chairman of the country’s only gold specific public company said recently. However, a debate has started in the industry about whether the exchange should include all tradable minerals or just gold, with a separate integrated exchange to follow later.


U Khin Maung Han, chairman of Myanmar Gold Development, said the company is working to establish an exchange market to ensure domestically sourced minerals met international quality standards.

“We have proposed that a commodity exchange market be set up to make sure that our minerals meet international standards,” he said.

He added that facilities to refine raw minerals should also be built, noting that the establishment of the market would create jobs.

A single market for gold would operate through banking systems, giving access to internet trading and credit, he said.

“But there will not be swindlers who trade with money they don’t have if the single market is established,” he added.

He said security, official support and the ability to easily link with banking systems countrywide were important in establishing the market.

A spokesperson for Myanmar Gold Development Co said: “We want to open a single market or an integrated commodity exchange market before we open the capital market in 2015.”

U Kyaw Win, from U Htone Gold Smith Shop and the marketing managing director of the Myanmar Gold Development, said a single market would protect buyers and sellers.

“In a proper market there would not be any room for swindlers who trade without the necessary capital in their hands,” he said.

U Aung of Aung Thamadi gold shop said the creation of a commodity market would hopefully lead to gold exports in future.

“We would like to be able to export gold eventually, just like other countries do,” he said.

The gold price on February 1 was K762,000 a tical (0.576 ounces), while the international rate was US$1662 an ounce on the London Bullion Market, AFP news agency reported. Myanmar Mineral Entrepreneur Association’s vice chairman U Khin Maung Han said the timing of the market is important.

“We need to wait for the right time to open a commodity exchange market. But it will take a lot of work to bring together the different players so that the market can be set up,” he said.

source: The Myanmar Times
http://www.mmtimes.com/index.php/business/3997-debate-surrounds-possible-national-minerals-exchange.html