Myanmar

EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2014
Latest Data From 2014
Website EITI Myanmar

Overview

Myanmar's natural resources include oil and gas, minerals and gems. The extractive sector accounted for 6% of GDP, 20% of State revenue and 47.6% of exports in 2015-2016. It has proven oil reserves of 138 million barrels and proven gas reserves of nine trillion cubic feet. The extractive sector is the second largest source of foreign direct investment and represent close to 40% of exports, with gas and gems being the two main revenue generating commodities.

The Myanmar government's 12-point Economic Policy accentuates the strategic role of EITI in the reform process, specifically in natural resource governance. The EITI creates a platform for vibrant discussions on issues around revenue sharing, state-owned enterprises, and lack of unified mineral cadastre system. The EITI is also stimulating public debate and shedding light on lost revenues from the gems and jade sector. According to the third Myanmar EITI Report, the value of gems and jade that were sold through the emporium in 2015-2016 was estimated at US$848m, while total government revenue collected amounted to US$ 578m. However, a World Bank study commissioned by Myanmar EITI in 2016 estimated that 60-80% of gemstones produced in the country are not declared and therefore bypass the formal system.

Beneficial ownership disclosure

On 30 June 2018, the Government of Myanmar created a Beneficial Ownership (BO) Task Force composed of representatives from relevant government agencies, which aims to provide leadership and direction to the country’s efforts on beneficial ownership disclosure. Following the publication of MEITI beneficial ownership roadmap, the MSG developed a work plan detailing specific activities related to the disclosure of information on company ownership.

The MSG also commisioned a BO pilot study where 17 out of the 21 volunteering companies provided information on their legal and beneficial owners. The study lists 31 natural persons who hold not less than 5% of the shares or voting rights and have control over the respective participating companies via other means. Data from the pilot study are presented in an interactive infographic

Global Witness also documented the beneficial owners of many of the oil and gas companies operating in the country in 2014.

 

Production

Natural resources

Myanmar has rich deposits of natural gas, petroleum, coal, copper, gemstones, precious and semi-precious stones, tin, tungsten, and zinc. Around 90% of the world’s supply of rubies are sourced from Myanmar and the country is also the world’s largest single source of Jade. Oil and gas is found both offshore and onshore. Mining occurs throughout the country with most of the jade deposits located in Kachin and Sagaing state.

CommodityReservesProductionSignificance
Oil138 million barrels1.5 million barrels
Gas9 trillion cubic feet 677,668 MMscfsecond highest production in Southeast Asia

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

  • EITI subnational units have been established in Mandalay, Magway, Rakhine and Shan.

  • The 2015-2016 EITI Report includes reconciliation of production and exports data.

Implementation

Governance

On 29 December 2016, the Union Government formally established the Myanmar EITI Leading Committee, which is is the highest EITI governing body in the country. The Leading Committee is composed of the Minister of Planning and Finance as Chair, the Minister of Natural Resources and Environmental Conservation and the Minister of Energy and Electricity as members, and the Deputy Minister of MOPF as Secretary. The Renaissance Institute was appointed as the National Coordination Secretariat (NCS). The current MSG consists of nine members from civil society and seven members each from government and industry. Civil society is represented by the Myanmar Alliance for Transparency and Accountability (MATA), while industry is represented by members of the Myanmar Federation of Mining Associations (MFMA), Myanmar Gems and Jewellery Entrepreneurs Association (MGJEA) and oil and gas companies. The forestry sector is also represented through the Myanmar Forest Products Merchants Federation (MFPMF).

On 7 March 2017, the EITI International Board approved MEITI's request for extension of deadlines, setting 31 March 2018 as the deadline for the publication of the second and third Myanmar EITI Reports, and 1 July 2018 as the commncement date for their Validation. 

Timeline

 

Validation

Myanmar's Validation against the Standard commenced on 1 July 2018. The country was admitted as EITI candidate in 2014.