Myanmar's Natural Resources: Opportunities and Challenges

Myanmar can generally be described as a country rich in natural resources. The nation possesses valuable territories such as the ruby-rich lands of Mogok, the jade mines of Hpakant, the gold fields of Moehti Moemi, and natural gas reserves in Rakhine State and the Mottama offshore region.

Natural resources can be categorized into above-ground and underground resources, as well as marine and underwater resources. These can be further classified into renewable and non-renewable resources. While many of these resources have diminished over the years due to decades of uncontrolled extraction, Myanmar's resource wealth still presents significant opportunities. However, these opportunities come with numerous challenges. Let's examine these aspects in detail.

Gemstone Resources

Rubies

Myanmar's rubies are world-renowned, and this isn't mere hyperbole. If you look at the list of the world's finest and most valuable rubies, you'll find numerous Myanmar rubies featured prominently.

Until June 2023, the world's largest and most valuable ruby was The Sunrise (The Estrela de Fura vs. The Sunrise) from Myanmar. It was only in June 2023 that the Estrela de Fura ruby from Mozambique became the world's largest and most valuable ruby.

The historic Myanmar Royal Ruby is another famous ruby that has gained worldwide recognition.

These world-famous rubies come from the Mogok gem lands. Ruby mining in Mogok dates back to the reign of King Mindon and continued through the British colonial period up to the present day.

Consequently, ruby deposits in the Mogok gem lands have been declining. While rubies were once considered extremely abundant, they are now classified merely as plentiful.

Sapphires and Jade

Similar to rubies, sapphires from Mogok and jade have declined from extremely abundant to merely plentiful levels. In particular, Myanmar's famous jade is being illegally exported to China. Myanmar jade is renowned worldwide for its quality. When combined with high-end Chinese craftsmanship, it becomes highly sought after in the Chinese market. The Chinese particularly value jade, wearing it both as ornaments and for perceived health benefits.

According to Global Witness's 2015 report "Jade: Myanmar's Big State Secret," Myanmar is the world's largest producer and exporter of jade. The primary jade mining area is in the Hpakant mining region of Kachin State. In fact, Hpakant is home to the world's largest jade deposits.

Where Opportunities Bloom

Imagine a vibrant space designed specifically for young people in Myanmar – a place where creativity, learning, and connection come together. The Build Myanmar Community Center is the ultimate solution for youth seeking inspiration and opportunity.

This innovative center offers:

Fully-equipped spaces with high-speed internet
Flexible co-working areas for collaboration
Networking opportunities
Diverse workshops led by experts from various fields
A comprehensive library for knowledge seekers
Maker spaces to fuel creativity and innovation

Interested in transforming your potential? Explore the link below and discover a world of possibilities.

Explore Now

The jade industry generates billions of dollars in revenue. Throughout different eras, Myanmar's famous businessmen and companies with government connections have controlled the jade mining concessions.

Diamonds and Emeralds

Myanmar produces very few diamonds, with extremely limited output. Emeralds are not found in Myanmar at all. Therefore, Myanmar's name isn't prominent in the global market for diamonds and emeralds.

Gold

Myanmar does produce gold. Although gold exports are officially restricted, illegal channels facilitate some exports. To this day, the highest gold-producing area in Myanmar is the Moehti Moemi gold field east of Yamethin. Gold veins in this area are licensed to a major private entrepreneur, and operations are conducted legally. Gold veins extend from Moehti Moemi to Mon State, and gold is also produced in the Thabeikkyin area.

Mineral Resources

Tin, Silver, Zinc, and Tungsten

The tin, silver, and zinc zone is located in the eastern part of the country. This includes central Shan State and central Bawsaing and Yadanatheingyi. Another zone of tin and tungsten extends along the western border of the Tanintharyi Range to the Shan Plateau. The antimony zone runs along Kayah and Karen States.

Myanmar is the world's sixth-largest producer of tungsten and antimony.

Rare Earth Minerals

Rare earth minerals have emerged as a significant resource in this decade. They are primarily produced in the Panwa region of Chipwi Township, Kachin State. The Panwa region is Special Region (1) and is controlled by people's militia groups. There are numerous rare earth mining operations in this area. There are also significant deposits in Tanintharyi Region, northern Shan State, Monywa, Kawlin, and the Wuntho area.

According to Global Witness's 2024 report, Myanmar's rare earth mineral production increased by approximately 40% between 2021 and 2023.

Oil and Natural Gas

Myanmar's oil and natural gas industry is a highly profitable sector. Even when Western countries imposed economic sanctions on Myanmar, the billions of dollars generated from oil and natural gas operations kept the country running.

Myanmar has 16 onshore blocks and 19 offshore blocks for oil and natural gas operations.

The oil and natural gas industry is controlled by MOGE. Foreign companies have obtained joint venture rights with state-owned enterprises. MOGE oversees all 16 onshore blocks and 19 offshore blocks.

Some of the extracted oil and natural gas is exported. For example, oil and natural gas from the Yetagun and Yadana offshore blocks in Tanintharyi are exported to Thailand, production from the Zawtika offshore block in the Gulf of Mottama goes to Thailand, and output from the Shwe natural gas project in the Rakhine offshore block is exported to China.

However, Myanmar struggles to meet its domestic oil and natural gas demands due to population growth and increasing electricity consumption.

Teak and Various Timber

Myanmar teak is world-famous. During King Thibaw's reign, the dispute over the Bombay Burmah Trading Corporation's illegal teak extraction and subsequent fines became a pretext for the British annexation of Myanmar. Even after Myanmar stopped exporting raw logs, Myanmar teak lumber continues to have a presence in the European market. Among Myanmar's hardwoods, Tamalan has become prominent after teak. Like teak, Tamalan and other Myanmar timber are being illegally purchased in bulk by China, while Myanmar parties are illegally exporting them. After buying raw logs, China manufactures modern, luxurious furniture and resells it in the global market. As a result, Myanmar's forest coverage area has been steadily declining.

Marine Resources

Marine resources refer to resources found underwater in rivers, lakes, and particularly in Myanmar's seas, including all aquatic species such as fish and prawns. Marine resources were once extremely abundant in Myanmar. Myanmar's fishing industry experienced a revival after the 2010 political changes when it received special tax privileges from Europe. Additionally, aquaculture businesses have seen a renaissance. However, traditionally, marine resources like fish and prawns in Myanmar's waters have declined due to illegal fishing by neighboring countries, especially Thai fishing boats, and the use of bottom trawling nets that scrape the seabed.

Challenges

The above information clearly shows that Myanmar is rich in natural resources. However, there are numerous challenges, including:

1. Legal Framework Weaknesses

Weak legal regulations diminish Myanmar's ability to conserve its natural resources. For example, some operations are conducted outside the legal framework. Therefore, consideration must be given to how to bring these operations into the legal framework and how to collect taxes effectively.

2. Weak Law Enforcement

The presence of smuggling despite existing laws demonstrates this point. The illegal export of raw logs despite bans, and illegal activities in jade mining areas harm the nation's interests.

3. Lack of Transparency

Limited transparency means these operations become the exclusive domain of rulers and privileged business people. Therefore, participation in transparency initiatives like EITI is beneficial for the public. However, transparency remains weak, and there's still a need to disclose how revenue from resources is being spent.

4. Need for Fair Distribution of Resource Revenue

Myanmar's natural resources are distributed throughout the country. Therefore, considerations must be made about whether to distribute resource revenues by states and regions, by population, or by resource-producing areas.

Natural resources are often referred to as a gift from heaven. However, this heavenly gift needs to be distributed wisely. Around the world, there are cases where poor resource distribution has led to conflicts. When this happens, the gift from heaven can transform into a natural curse. Myanmar's natural resources are double-edged swords, where opportunities and challenges exist side by side.

Y3A

Build Myanmar-Media : Insights | Empowering Myanmar Youth, Culture, and Innovation

Build Myanmar-Media Insights brings you in-depth articles that cover the intersection of Myanmar’s rich culture, youth empowerment, and the latest developments in technology and business.