Myanmar’s Ministry of Mining has narrowed a selection of prospective partners for its tin smelter to just seven local and foreign companies, according to an official from the state-run enterprise.

The No.2 Mining Enterprise under the Ministry invited expressions of interest in September 2014 to enter into a Private Public Partnership (PPP) for operation of its tin refinery and smelting plant near Rangoon. It received responses by twelve companies, which it cut down to ten in November. The remaining seven companies are Thailand Smelting and Refining Co Ltd and OM Manufacturing Co Ltd from Thailand, Mining World Co Ltd and UMG Co Ltd from Myanmar, Malaysia Smelting Co Ltd, Keiwa Innovation Co Ltd from Japan and Myanmar Pongpipat Co Ltd, a Myanmar-Thai joint venture.

The plant has run intermittently over the last few years on very small scale. U Win Htain, director at the Department of Mines, said “The plant is still operating but it needs upgrade. When the operation starts with the cooperation of selected company, we will use their advanced technology.” The proposed partnership is an attempt to add value to the countries mineral resources by maximising processing and refinement before export.

ITRI view: Investment in Myanmar’s tin industry has been hampered in the past by the government’s 30% production sharing ratio, which has also limited the supply of tin concentrates to the state-owned smelting operation. It is likely that a more acceptable royalty structure will be established in the future to encourage foreign investment.