EUMERALLA Resources expects the exploration permit for its tungsten project in Kayah State to be granted by Myanmar’s Union Government by the end of the year. The company expects this will be the final step in the approval process.
Eumeralla’s 70%-controlled Myanmar subsidiary Mawsaki Mining Co Ltd received State Government approval for its exploration permit in October 2014. Mawsaki progressed with the process towards being granted the required approvals to clear the way for consideration of the proposed exploration terms and conditions by Cabinet of the Union Government.
This was the next step following successful negotiations over the licence area with the Office of Chief Minister, Kayah State Government, Chief Minister, Ministry of Forest and Mines, both the State Forest Department and State Land Records Department in Loikaw and Office of Township Administration, Hpahsaung.
Eumeralla has been encouraged by the smooth progress of the Myanmar National Election on November 8, 2015, and the formation of a new government. In addition, reforms to the Myanmar Mines Law (1994) continue to move ahead in Parliament and the final version of the laws was passed in the first half of 2016.
In its June quarterly report Eumeralla said it continued to hear that progress was being made towards the Union Government approval. It said it was also encouraged that the first licences had started to be awarded, indicating that the process of licence issuance had commenced.
Eumeralla is also working with other local partners to acquire high quality tin and tungsten concessions.
In July 2013, the company, in conjunction with local partner Myanmar Energy Resources Group (MERG), jointly applied to the Ministry of Mines for an exploration lease of approximately 400sqkm in Kayah on the basis of 70% Eumeralla and 30% MERG. The lease is in an established tin and tungsten producing area and based on historical data and geological mapping, the company believes it has potential for a primary tin or tungsten discovery.
Meantime, negotiations continue for three additional exploration properties. This transaction is subject to Southern World Mining (SWM) confirming issuance of the ‘licence to explore’ by the Ministry of Mines. The JV will see SWM assist with exploration, approvals and other local permissions.
Eumeralla also signed an MoU with Two Palms in December 2012 for exploration which is subject to Ministry of Mines approval. One potential exploration site has been identified.