August 18, 2016

Mining companies struggling to pay govt royalties

A jade mining in Hpakant.
A jade mining in Hpakant.

MINING entrepreneurs are currently facing problems paying royalties to Myanmar Enterprise No 2 on sales of produced manganese dioxide as they haven’t been able to sell any for export, according to the Eastern Shan State Mining Entrepreneurs Association.
“We are not in a position whereby we can sell manganese dioxide from our mining activities as we don’t have any foreign buyers. The world market of minerals is falling. Right now we’re in a spot of difficulty as the Myanmar Enterprise No 2 is requesting us to cough up the money owed to them so that can show their share to the new government.” said U Tin Nway, secretary of the Eastern Shan State Mining Entrepreneures Association.
It is known that iron and steel, as well as other alloy materials are used in the production of manganese dioxide.
Companies involved in regional mining enterprises must, as well as finding their own mining location, carry out mining excavation completely under their own budget. As a result, they are facing difficulties are they are unable to sell their mined minerals and metals.
Thirty percent of money received from the sales of manganese dioxide production must be paid to the Mining Enterprise No 2 while a further two percent for fiscal tax and a three percent fee for being a joint venture with the government must be paid to the Ministry of Mines.
There are eight companies involved in mining production of manganese dioxide in eastern Shan State. In the 2010-11 fiscal year an approximate amount of 100,000 tons of the chemical compound was sold, while this dropped drastically during the last fiscal year of 2014-15 to just 3,000 tonnes, according to the records of the Eastern Shan State Mining Entrepreneurs Association.


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