The 4th EITI Forestry Report covers Myanmar's forestry sector in 2017 and 2018.
Myanmar's natural resources include oil and gas, minerals and gems. The extractive sector accounted for 4.4% of Gross Domestic Production (GDP), 14% of State revenue and 20.4% of total exports in 2016-2017.
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 has been a platform for vibrant discussions on issues around revenue sharing, state-owned enterprises, and the need of a 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 fourth Myanmar EITI Report, the value of gems and jade that were sold through the emporium in 2016-2017 was estimated at EUR 675,912,504. However, a 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.
Myanmar has Mining Law, Gemstone Law and Petroleum Law but contracts typically govern all extractive projects. Contracts are confidential, but model oil and gas Production Sharing Contracts (PSC) are disclosed by the Ministry of Energy. PSC holders and their legal owners are disclosed in their EITI Report. The main revenue streams in both the hydrocarbon and mining sector are royalties, production split, royalties and commercial tax/corporate income tax. Tax revenues are collected by the Ministry of Planning and Finance (MOPF). Subnational governments do not collect revenues.
In 2018, the Government of Myanmar created a Beneficial Ownership (BO) Task Force composed of representatives from relevant government agencies, in order to provide leadership and direction to the country’s efforts on beneficial ownership disclosure.
Two years later, in February 2020, the Government of Myanmar and Myanmar EITI co-launched a new beneficial ownership register on the Directorate of Investment and Company Administration’s website.
The registry enables users to search mining, oil and gas companies for the identities of individuals owning shares of 5% or more in these companies. Out of the 163 extractive companies that were requested to disclose their beneficial owners through the online form, 121 companies, including four state-owned enterprises, submitted a form with information about their ownership structure.
Additional companies in scope of the 5th EITI report (FY 2017-18) will be included in the registry when a new data collection round commences later this year.
Although extractive industries contributed substantially to the rapid growth of the economy in recent years, we have been facing many challenges in relation to social and environmental issues. In this regard, strong institutions, clear environmental regulations and governance, law enforcement and social safeguards are undoubtedly required, along with social, economic and environment factors to achieve sustainable development. Therefore, Myanmar has been trying to be an Extractive Industries Transparency Initiative-compliant country to ensure transparency and accountability in natural resources exploitation and financial management.
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.
Production and export of oil and gas (in volume) in FY 2016/17 is illustrated in the figure below:
|Oil||138 million barrels||1.5 million barrels|
|Gas||9 trillion cubic feet||677,668 MMscf||second highest production in Southeast Asia|
The latest EITI disclosures (2017) show that Myanmar received around 2,302,776 million Myanmar Kyat from extractive industry. 79% of these revenues came from oil and gas, with the rest from gems and jade (16%) and other minerals (4%). Extractive revenues were mainly collected through the government’s share of oil and gas production, royalties, signature bonuses and corporate income tax.
Extractive revenues in Myanmar are mainly retained by State-Owned Enterprises (SOEs) in their “Other Accounts”(39% in FY 2016/17) as the company’s own funds and for the purpose of its exclusive operations and capital investment. The lastest EITI figures indicate that in fiscal year 2016/17, oil, gas and mining SOEs collected nearly 1.9 million Myanmar Kyat from extractive companies. In total, 2.1 million Myanmar Kyat were transferred from SOE's to the government. The largest SOE, the Myanma Oil and Gas Enterprise (MOGE) transferred more than 1.9 million Myanmarf Kyat, illustrating its significant role in the country’s extractive sector. The SOEs contribute to the government’s budget through two main fiscal instruments: profit tax and dividend.
EITI reports have found that potential revenue from minerals are lost due to weak governance of the extractive industries. Recommendations from the latest EITI reports included the strengthening of the institutional capacities of the IRD by establishing an Extractive Industry Revenue Unit, improving data availability and accessibility, and developing better systems for the certification, traceability and valuation of the gemstones, and reforming the governance of SOEs.
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 set 1 July 2018 as the commncement date for Myanmar's Validation.
The 3rd EITI Forestry Report covers Myanmar's forestry sector in 2016 and 2017.
The 5th EITI Report covers Myanmar's extractive sector in 2017 and 2018.
On 16 October 2019, the Board agreed that Myanmar has made meaningful progress overall in implementing the 2016 EITI Standard (2019-58/BM-45
Timeline of Validation and related materials
1 July 2018: Validation commenced8-17 August 2018: Country visit
Initial data collection and stakeholder consultations
24 November 2018 - Report on Initial data collection and stakeholder consultation [English
The 4th EITI Report covers Myanmar's extractive sector in 2016 and 2017. It was first published in March 2019. An updated report was subsequently published in July 2019 (EITI Supplementary Report).
More information can be found on MEITI's website
This EITI Report covers Myanmar's extractive sector in 2015 and 2016. It was published in March 2018.
This EITI Report covers Myanmar's extractive sector in 2014 and 2015. It was published in March 2018.
An outline of the steps leading to beneficial ownership disclosure by 1 January 2020.
This EITI Report covers Myanmar's extractive sector in 2013 and 2014. It was published in December 2015.
This is the Myanmar EITI 2014-2015 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).
Executive summaryMyanmar EITI has carried out a scoping study in order to set out the EITI reconciliation scope which will be used for the first Myanmar EITI report. This assignment is the first step and pre-condition to the reconciliation process.
Objective of the missionThe objective of the report is to clearly define the scope of the EITI reconciliation exercise, the Reporting Templates, the data collection process and the working schedule, in accordance with the EITI Requirements (Version 2013) and objectives agreed by the EITI Committee.