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Troubled copper mine back on track

Updated: 2013-06-20 07:14
By Qin Zhongwei in Mandalay, Myanmar ( China Daily)

Troubled copper mine back on track

The Monywa Copper Mining Project, a section of which is shown here, is a cooperative effort of Chinese and Myanmar enterprises. Of the project’s four sections, Letpadaung Mine has the largest resource reserve, accounting for 75 percent of the total. 

'Resource curse'

A country with abundant mineral resources should be considered blessed, insiders said. But the promise of Myanmar's rich mineral resources has been overshadowed by concerns about so-called "resource curse", they said.

China Daily Special: Beyond Boundaries

As energy security becomes increasingly important in Asia, Myanmar is well positioned to help supply the region's energy needs, especially the region's three leading economies, China, India and Thailand, said Soe Myint, a retired official from Myanmar Ministry of Energy.

"But an immediate challenge facing Myanmar is how to balance its resource-based development because the country must manage its natural resources to fuel its economy through exports while catering for its own development needs," he wrote in an article in The Myanmar Times.

Several other countries' projects are also under fire, according to Win Myo Thu. A large coal-fired power station in southern Myanmar, built by a Thai company and a Japanese company that claims to be using clean coal technology in Myanmar, have all faced environmentalists' skepticism.

Troubled copper mine back on track

Oil and gas account for the majority of foreign investments in the resource-rich nation.

And despite the rapid inflow of Western capital, China remains Myanmar's largest investor, accounting for 33.8 percent of all foreign investment in the country.

Talking with China Daily in April during his visit to China, Myanmar President U Thein Sein said his government welcomes Chinese companies investing in Myanmar, especially if it can creates jobs. "Myanmar has improved its laws and regulations to legally protect the interests of investors."

After the commission's report into the Letpadaung copper mine was released, China's Foreign Ministry spokeswoman Hua Chunying said the Chinese government will continue to encourage Chinese enterprises to carry out cooperation with Myanmar to achieve mutual benefits.

There is still great potential and ample space for China to deepen its economic cooperation with Myanmar in all fields, according to Li Chenyang, director of the Myanmar research center at Yunnan University.

"We need to peacefully coexist, otherwise nobody can benefit," Win Myo Thu said. Establishing more people-to-people exchanges to promote mutual understanding and alter people's misconceptions is very important, he said.

qinzhongwei@chinadaily.com.cn

 

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