natural resources of myanmar essay

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• Council on Foreign Relations - Myanmar’s Troubled History: Coups, Military Rule, and Ethnic Conflict
• globalEDGE - Burma
• GlobalSecurity.org - Myanmar / Burma - Introduction
• Indianetzone - Naga Tribe , Assam
• Central Intelligence Agency - The World Factbook - Burma
• Myanmar - Children's Encyclopedia (Ages 8-11)
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• Table Of Contents

Myanmar is rich in minerals, including metal ores, petroleum, and natural gas, and also has significant deposits of precious and semiprecious stones. Although production generally has been increasing since the late 20th century, mining accounts for only a tiny fraction of the country’s GDP and a comparable portion of the workforce.

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Large-scale exploitation of Myanmar’s mineral deposits began in the mid-1970s. Deposits of silver, lead, zinc, and gold are concentrated in the northern Shan Plateau, tin and tungsten in the Tenasserim region, and barite around the town of Maymyo in the central basin. Copper mining at the town of Monywa began in the early 1980s and has been growing, despite intermittent setbacks caused by shortages of fuel and supplies as well as by economic sanctions imposed by foreign governments.

Rubies and sapphires have been mined in the northern Shan Plateau since precolonial times. Jade is mined in the northern mountains. The country also produces smaller quantities of spinels, diamonds, and other gemstones.

When Myanmar was colonized by the British in the late 19th century, the extraction of petroleum from the country’s central region already was an established local practice. The industry was expanded by the British and, since the mid-20th century, by the government of independent Myanmar. Although exploration for onshore petroleum resources since independence has not proved particularly fruitful, exploration for natural gas has been especially productive. Exploitation of onshore gas fields began in the 1970s, and in the 1990s extensive gas fields were opened offshore—especially in the Gulf of Martaban—and a pipeline was constructed to serve Thailand. There are oil refineries at Chauk , Syriam , Mann, and other locations.

Myanmar also has major deposits of coal, and production rose sharply in the early 21st century. Coal is mined primarily in the upper Irrawaddy and Chindwin valleys.

The demand for electricity chronically has outstripped capacity. Although much of the country’s energy is drawn from fossil fuels, hydroelectricity accounts for a significant and rapidly expanding segment of Myanmar’s total power supply. The government has built several hydroelectric power plants, including those on the Balu River (a tributary of the Salween), at Taikkyi near the city of Bago (Pegu), in the northern Rakhine region, and near Mandalay.

There was little industrialization in Myanmar until the mid-20th century, when a limited program was initiated after the country achieved independence. Yangon, Myingyan (in the dry zone), and the Rakhine area were selected to become the new industrial centers. Although the manufacturing sector has expanded, it has not grown as rapidly in Myanmar as it has in other countries of the region.

A major enterprise in Myanmar is tobacco production, consisting of government-owned factories, which manufacture cigarettes, and cottage industries, which produce cheroots (a type of small cigar). Other important industries include steel processing, the manufacture of nonelectrical machinery and transportation equipment, and cement production. Textile factories have been established in Yangon, Myingyan, and other cities, but growth of the industry has been hindered since the late 20th century by intermittent sanctions by foreign governments. Myanmar also produces lumber, paper, processed foods (mainly rice), and some pharmaceuticals. Cottage industries are encouraged by subsidies.

The government’s decision in the early 1960s to limit foreign trade reversed the export orientation of the British colonial period. However, the subsequent relaxation of trade restrictions, notably the legalization of trade with China and Thailand in the late 20th century, allowed trade again to become a significant component of the national economy. Natural gas is Myanmar’s primary export, followed by pulses (mostly dried beans), teak , and minerals and gems. Its principal imports include machinery and equipment, industrial raw materials, and consumer goods. Largely because of sanctions imposed by the United States and members of the European Union in the late 20th century, Myanmar’s Asian neighbors—including Thailand, Singapore , China, South Korea , India, and Japan—became its chief trading partners. In 2012 the EU suspended its economic sanctions before lifting them altogether the following year. After the return of civilian rule in Myanmar in March 2016, the United States ended its sanctions program.

Businesses remaining in the private sector after nationalization account for only a small fraction of the country’s tax income. The balance is collected from the public sector . The principal sources of revenue are taxes (income, commercial, and customs) and receipts from state enterprises.

The country’s trade in rice is dependent on water transport. The Irrawaddy River is the backbone of Myanmar’s transportation system. The Irrawaddy is navigable year-round up to Bhamo and to Myitkyina during the dry season, when there are no rapids. The Chindwin is navigable for some 500 miles (800 km) from its confluence with the Irrawaddy below Mandalay . The many streams of the Irrawaddy delta are navigable, and there is a system of connecting canals. The Sittang , in spite of its silt, is usable by smaller boats, but the Salween , because of its rapids, is navigable for less than 100 miles (160 km) from the sea. Small steamers and country boats also serve the coasts of the Rakhine and Tenasserim regions.

The first railway line, running from Yangon to Pyay (Prome) and built in 1877, followed the Irrawaddy valley. The line was not extended to Mandalay; instead, after 1886 a new railway from Yangon up the Sittang valley was constructed, meeting the Irrawaddy at Mandalay. From Mandalay it crossed the river and, avoiding the Irrawaddy valley, went up the Mu River valley to connect with the Irrawaddy again at Myitkyina. A short branchline now connects Naba to Katha on the Irrawaddy below Bhamo.

The Yangon-Mandalay-Myitkyina railway is the main artery, and from it branchlines connect the northern and central Shan Plateau with the Irrawaddy. Other branches run from Pyinmana across the Bago Mountains to Kyaukpadaung and from Bago to Mawlamyine to Ye. The Pyay-Yangon railway has a branchline crossing the apex of the delta to Hinthada and Pathein (Bassein).

The road system, until independence, was confined to the Irrawaddy and Sittang valleys, duplicating the railway route. A road goes from Pyay along the Irrawaddy to the oil fields, and many roads extend into the rural areas. These rural roads, however, are often impassable during the wet season. There were originally three international roads in use during World War II: the Burma Road from Lashio to Kunming in China ; the Stilwell , or Ledo, Road between Myitkyina and Ledo in India ; and the road between Kengtung, in the southeastern Shan Plateau , and northern Thailand . These roads subsequently became neglected but more recently were rebuilt and extended.

The state-run Myanmar Airways International runs frequent domestic flights between Yangon and other cities; it also has international service from Yangon to several major Southeast Asian cities. There are also small privately owned airlines that offer domestic and very limited international service. International airports are located in Yangon and Mandalay.

Yangon, as the terminus of road, rail, and river-transport systems, is the country’s major port, with up-to-date equipment and facilities. Pathein, Mawlamyine, and Sittwe are also important ports.

• Where We Work

Myanmar Country Environmental Analysis

Despite their critical role to the country’s development and economic transformation, Myanmar’s forestry, fisheries and the ecosystem they provide are under tremendous pressure. The Myanmar Country Environmental Analysis (CEA) draws on a comprehensive analysis on the country’s environment and natural resources challenges and identifies strategic recommendations to address the causes behind the degradation as well as to promote improved environmental management, investment and expenditure practices.

The situation 

Between 1990 and 2015, the forest cover has been declining at an average rate of 1.2 percent a year, totaling around 10 million hectares. The overexploitation of fish stocks has contributed to a severe decline in Myanmar’s marine fish resources, reportedly by as much as 90 percent since 1979/80. The Myanmar Country Environmental Analysis sets out clear recommendations and actions for sustainable and inclusive development of the forestry and fisheries sectors, and the need for enhancing Environmental Impact Analysis systems, solid waste management and air pollution. 

Myanmar has relied heavily on natural resource exploitation to sustain economic growth, and serious environmental issues are emerging, underlying the importance of transparent and robust Environmental Impact Assessment (EIA) system. Air quality is also increasingly compromised, as industrial and mining discharge, and urban waste bring new and increasing environmental health issues. Rapid urban growth in Myanmar generates additional pressures linked to solid waste generation. 

The facts 

On forestry:

The primary drivers of deforestation in Myanmar are land conversion (primarily for agriculture and mining), development of roads and other infrastructure, excessive and poor governance of the mining sector, increase in dams and reservoirs. 

Some reports put wood fuel extraction as the biggest single demand on forest biomass, significantly greater than timber. Fuelwood is the primary fuel for as much as 95 percent of rural domestic energy needs, and estimations range between 60 to 80 percent of total energy consumption.

• Community Forestry has been hampered by limited capacity and financial resources of local Forest Department as well as local civil society staff related to awareness on CF rights and regulations. 

On fisheries:

• Open-access and the ‘race to fish’ is the primary driver of depletion and overfishing in Myanmar.
• Large declines in numerous species of freshwater fish are reported throughout the Ayeyarwady River Basin, which covers around 60 percent of Myanmar’s land area.
• Illegal fishing in the inshore and offshore segments of Myanmar’s marine fisheries is commonplace and enforcement in many marine fisheries remain limited.
• The area of mangroves in Myanmar is the second largest in Southeast Asia after Indonesia, totaling around 500,000 hectares, but the rates of mangrove loss in this country are the highest in the region, with 2.2 percent annual over the period 2000-2012 or net loss of 191,120 hectares.

On the Environmental Impact Assessment system:

• The number of Environmental Impact Assessment/Initial Environment Examinations/Environmental Management Plans submitted is increasing every year. A high proportion of these reports is for the mining sector, which can be largely explained by the new licensing requirements for mining operations. while nearly all reports (89.6 percent) have been replied to, only a small fraction (6.9 percent) has been approved.
• Under the current system, it will not be possible to approve all of the outstanding EIAs. There is an urgent need to reform the EIA review process using a risk-based screening system for incoming reports.
• The Environmental Conservation Department currently does not have an effective and transparent mechanism for tracking the submission of EIA/IEE/EMP.

On solid waste management and pollution:

• Due to the current practice of open dumping of waste and the insufficient collection coverage and cleanliness, there are key environmental and operational issues as follows: landfills that are almost at their full capacity, waste dumping without any compaction, surface and groundwater contamination, methane production, release of greenhouse gas and potential landfill fires.
• In 2017, air pollution is estimated to have attributed to more than 45,000 deaths in Myanmar. As a risk factor for death, air pollution is higher in Myanmar than in other countries in the region and is almost twice the average for Southeast Asia. For Myanmar youth aged 5 to 14 years, particulate matter pollution is the leading risk factor of death among all risk factors, including malnutrition and other behavioral risks.

The recommendations

• Increased transparency, dialogue and social inclusion are some of the key elements of Myanmar’s forest reform process.
• Global experience shows that community forestry and smallholder plantations are financially and socially viable and can meaningfully contribute to rural income generation if the right incentives are in place.
• Wood processing can enhance exports and rural jobs creation.
• Community-based fisheries management provides opportunities to promote more equitable distribution of benefits from inland and inshore fisheries, and for balancing competing demands between improving fisheries governance and safeguarding the livelihoods of the poor.
• International models for how certification, credit access and devolution of management powers can be used as tools to enhance the incentives for sustainable community-based fisheries.
• Improved fisheries governance and management offers significant opportunities to reduce local conflicts in coastal and floodplain areas.

On the Environmental Impact Assessment:

• The recommendations for improving the EIA system aims at ensuring that the government has a modernized information system for managing the EIA process, and that the Environmental Conservation Department is equipped with the appropriate technical capacity, tools, budget and resources to become a more effective environmental regulator.
• The roadmap for a plastic action plan is needed to analyze the negative economic impacts of plastic mismanagement.
• Establishing an ambient air quality monitoring network is needed to improve pollution control and management.
• Synthesis Report (English)
• Synthesis Report (Myanmar)
• Executive Summary (English)
• Executive Summary (Myanmar)
• Forestry Sector Forestry Report (Myanmar) | Forestry Brief (English) | Forestry Brief (Myanmar) | Forest Resources Sector | Community Forest Assessment | Forestry Infographic | Forestry Video
• Environmental Impact Assessment Environmental Impact Assessment Brief (English) | Environmental Impact Assessment Brief (Myanmar) | Environmental Impact Assessment Infographic | Environmental Impact Assessment Diagnosis Report (Myanmar)
• Fisheries Sector Fisheries Brief (English) | Fisheries Brief (Myanmar) | Fisheries Infographic | Fisheries Video | Fisheries Report (English) | Fisheries Report (Myanmar)
• Waste Management Waste Management Infographic | Waste Management Video
• Air Pollution Air Pollution Infographic | Air Pollution Video

Myanmar (Burma): Mining, Minerals and Fuel Resources

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This article was updated by Brett Smith on 6 May 2021

Image Credit: hans.slegers/Shutterstock.com

Officially known as the Republic of the Union of Myanmar, Myanmar (still known as Burma in some countries) is a country in South East Asia, with a population of 54.7 million. It is the 40 th largest country in the world, with an area of 677, 000 sq miles. It also has a phenomenally rich biodiversity.

Myanmar is a country of abundant natural resources and yet is still one of Asia’s poorest countries. This is in part due to recent political turmoil.

In 2015, the first openly contested elections since 1990 were conducted in Myanmar. In this election, the National League for Democracy won the majority, Win Myint was elected as the President, and Aung San Suu Kyi was elected as the State Counsellor.

In 2021, the country’s military took control of the government in a coup d’etat after the military-backed political party lost the general election to Suu Kyi’s NLD party. After citing widespread election fraud and seizing power, military leaders declared a year-long state of emergency.

Overview of Resources

A wide range of useful minerals are naturally present in this country, such as rich deposits of tungsten, tin, zinc, silver, copper, lead, antimony, and industrial minerals. Fossil fuels coals, petroleum, and natural gas are also abundant. Myanmar is also a world leader in producing gemstones, including jade, diamonds, rubies, and sapphires. In 2018, mineral and mineral products comprised 23% of all exports.

The extraction of natural resources has been a source of income for native people for many years and has been undertaken in a sustainable way. In recent years, industrialized exploitation of mineral resources in the absence of correctly enforced sustainability measures and policies is putting the diverse environment of the country at risk .  In particular, the mining of precious stones has been linked with numerous environmental impacts, such as poor water quality, deforestation, land degradation, and the accumulation of chemical waste. Mining has also been linked to localized erosion and flooding.

After coming to power in 2015, the NLD government had pledged to enact environmental reforms for the mining sector. However, few reforms have come to pass. The government stopped issuing mining licenses in an attempt to curtail environmental impacts until a major piece of environmental law known as the Gemstone Law was passed, but the law itself has not been strictly enforced.

The actual monetary value of the material mined in Myanmar is difficult to determine due to the political complications within the country. Some experts think that the amount of money made from the mining sector in Myanmar is heavily downplayed. Based on data available, in 2016, the US Department of State estimated a total export value of USD$15.7 billion, of which a significant proportion was natural resources.

Problems encountered when mining in Myanmar are like those seen in any mountainous and rural country, in that the mining areas are very remote and difficult to access .  Furthermore, many natural resource deposits are located in regions affected by ethnic conflicts. A major part of the ongoing conflict in the Kachin state is centered around the control of the region’s natural resources.   For many years, jade mining in the state has been controlled by the military.

These figures are estimates based on statistics from the Burmese Government's Central Statistical Organization, December 2010. Image Credit: US Department Of State.

Industrial Minerals and Gemstones

Representing more than 90% of global production, Myanmar is the largest jade producer in the world and is one of the only countries in the world to produce jadeite, the highest quality of jade. According to data from Global Witness, the industry is worth $30 billion, which is more than half of the national GDP.

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A significant number of jade sales in the country are conducted by a state-owned company at national jade emporiums. Jade export in the financial year 2014–2015 was more than $1 billion; however, this export fell in consecutive years. Data surrounding jade and other industries is murky due to the remoteness of mining operations and political instability. According to the Extractive Industries Transparency Initiative (EITI), about half the government data on Myanmar’s precious stones industries is missing or incomplete. Observers say a significant amount of jade is smuggled over the border to China, making it difficult to track and tax. The Natural Resource Governance Institute (NRGI) has found as much as two-thirds of jade production in Myanmar is not taxed.

Rubies, sapphires, and diamonds are also found in significant quantities in Myanmar. According to the EITI, $975 million worth of gem sales were conducted at the country's emporiums in the 2017-18 financial year.

Mineable metals, such as gold, silver, copper, tin, tungsten, zinc, and nickel are abundant and diverse in Myanmar.

In 2014, the country’s massive production of tin shocked observers, rising to become the third-highest in the world. Over the course of five years, tin production increased around 4900%, which was largely attributed to a new tin mine in the Wa State, as opposed to the more traditional tin-producing tin areas in the country’s southern regions. Because the Wa State is largely autonomous, tin production was not significantly affected by the February 2021 coup.

Nickel is a growing commodity in Myanmar. In 2013, the country produced 9300 metric tons of the mineral, an increase of 4300 metric tons compared to 2012.

Copper is also present and primarily extracted at the Monywa copper project.

Less common metals are also present in valuable quantities, including tungsten and molybdenum. It has been reported recently that Itochu Corp of Japan has begun feasibility studies into the mining of these metals.

Unfortunately, the mining of metals, especially tin, in the delicate coastal regions of the country may be threatening the local environment.

A satellite photograph of the Irrawaddy Delta, Myanmar, one of the world's great rice-producing regions. Image Credit: CIA World Factbook

Fossil Fuels

Coal, oil, and natural gas all feature prominently in Myanmar’s wealth of natural resources.

The most important of these is natural gas, which is estimated to account for 40% of the export of Myanmar. It is the 39th biggest producer of natural gas currently and exported around $6 billion of petroleum in 2016. A pipeline that connects Myanmar and China delivers gas from the Bay of Bengal and offshores sites if Myanmar to China. Five countries, including China, Myanmar, South Kora, and India have invested in this project.

In 2013, another natural gas pipeline that connected the Shwe field complex, Bay of Bengal, to Yunnan province, southwest China was completed. The cost of this project was estimated to be US$2 billion.

In 2013, around 560 coal mines were estimated to be present in Myanmar, and the annual yield of coal was about 700,000 metric tonnes. In 2017, the government decided to stop issuing new coal mining licenses due to adverse effects on the environment. Licensing resumed after the passing of the Gemstone Law.

For the 2015-2016 fiscal year, direct foreign investment peaked at nearly $9.5 billion. For the 2019-2020 year, foreign investment was at $5.5 billion.

Traditionally, business investment from the wider international community has been slim, with the only major economies investing in the country is China, Singapore, India, and South Korea. For 2019-2020, Singapore was considered the biggest single foreign investor, but the combined investments of China and Hong Kong for that year were larger, according to official Myanmar data.

In 2017, investment in transportation and communications areas fell by almost two-thirds. The investment in the tourism sector fell by 56%, while the investment in the power sector fell by 55%. The persecution of Rohingya by the military, which was criticized by the international community, may also have caused a dip in foreign investment.

Legislations have been passed by the Myanmar parliament which has reduced the restrictions on foreign investment from August 2018.

Disclaimer: The author of this article does not imply any investment recommendation and some content is speculative in nature. The Author is not affiliated in any way with any companies mentioned and all statistical information is publically available.

References and Further Reading

• http://www.bbc.co.uk/news/world-asia-pacific-12990565
• https://www.cia.gov/
• https://www.internationaltin.org/tin-production-isolated-myanmar-coup
• https://www.dw.com/en/mining-disasters-continue-in-myanmar-despite-regulations/a-54042106
• http://country.eiu.com/Myanmar
• https://www.aljazeera.com/economy/2021/2/18/for-foreign-investors-in-myanmar-coup-adds-new-uncertainties

Disclaimer: The views expressed here are those of the author expressed in their private capacity and do not necessarily represent the views of AZoM.com Limited T/A AZoNetwork the owner and operator of this website. This disclaimer forms part of the Terms and conditions of use of this website.

G.P. Thomas

Gary graduated from the University of Manchester with a first-class honours degree in Geochemistry and a Masters in Earth Sciences. After working in the Australian mining industry, Gary decided to hang up his geology boots and turn his hand to writing. When he isn't developing topical and informative content, Gary can usually be found playing his beloved guitar, or watching Aston Villa FC snatch defeat from the jaws of victory.

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Myanmar’s Environment and Climate Change Challenges

Myanmar is rich in natural resources and a global biodiversity hotspot. Myanmar is also one of the countries worst affected by climate change and one of the least equipped to improve its resilience without external support. How to manage natural resources has always been at the heart of Myanmar’s history and learning how to manage economic development sustainably became a central question of Myanmar’s democratic transition.

Since the February coup, the people of Myanmar have been mobilizing against the military through protest and an armed resistance led by ‘People’s Defence Forces’ and ethnic resistance organizations. These groups of actors and their associated federal-level interim governance institutions are developing a political framework to negotiate both an interim constitution and a permanent constitution for the future Federal Democratic Union of Myanmar.

This Policy Paper provides an overview of Myanmar’s environment- and climate-related governance challenges. It also identifies key considerations on how a future constitutional framework could guarantee environmental protection, protect biodiversity, promote access to justice and address climate change, informed by international good practices and comparative case studies.

• Sharon Pia Hickey

Executive summary

Key recommendations

Introduction and purpose

1. The links between climate change and democracy

2. International commitments and pre-coup legal framework

3. Environmental, climate change and natural resource management

4. Key considerations for interim governance structures and transitional constitutional process

5. Conclusion and recommendations

Recommendations

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Natural Resources of Myanmar (Burma) _ English Version

Natural resources of myanmar (burma).

In the peace process of Myanmar, politics and security issues are critical aspects that need to be discussed. It is also very important to discuss about the natural resource management issues within the peace process dialogue. Due to the armed conflicts in the ethnic minorities’ areas and political instability, natural resource extraction is not managed systematically. If the topic of natural resource is included in the discussion at the National Peace Conference, it would be very helpful for the nationwide development of Myanmar and ethnic minorities’ areas. It is also crucial to obtain an agreement for natural resource ownership, sharing and financial management and resolutions for socio-environmental impacts resulting from natural resource extraction. Once an agreement has been reached;

Indonesia, Nigeria, Sudan and Canada. Management of oil, natural gas and jade extracted from Kachin and Rakhine were also observed by carrying out field trips ………………

To continue reading the research paper of  Natural Resources of Myanmar (Burma)  in English please download pdf file below.

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