Playing a key role in boosting the development of Myanmar’s mining industry

Myanmar Yangtse Copper Ltd (“Myanmar Yangtse”) and its sister company Myanmar Wanbao Mining Copper Ltd (“Myanmar Wanbao”) are playing a key role in boosting the development of Myanmar’s mining industry while also benefiting the local people. Both of the companies are subsidiaries of Wanbao Mining Ltd, headquartered in Beijing, China.

Mining With a Social Conscience

Mineral resources will continue to play a key role in driving sustainable economic growth and boosting the per capita GDP among the people of Myanmar. It creates jobs, contributes to government revenues and nurtures a skilled work force for industrialization in the region, says Mr. Geng Yi, Chairman of Myanmar Yangtse and also Managing Director of Myanmar Wanbao.

Myanmar Yantse is proud to be the only one producer in Myanmar for its LME registered Grade A Cathode Copper with the brand name of “Monywa S&K”, which is mined from its Sabetaung and Kyisintaung (S&K) deposits in the Monywa Copper Mine area.

Myanmar Wanbao is developing the nearby Letpadaung deposit, which is the largest part of the Monyawa Copper Mine. It is hoped the Letpadaung mine, which is still under construction, will enter into production in 2015.

Myanmar Yangtse is an SGS-certified company, certified OHSAS 18001 for occupational-health-and-safety management, ISO 14001 for environmental management and ISO 9001 for quality management. “Myanmar Wanbao is also committed that it’s Letpadaung copper project is undertaken in accordance with international standards and good practice.” Mr. Geng Yi says.

Sustainable development is of the utmost importance to Myanmar Yantse and Myanmar Wanbao, according to Mr. Geng Yi. “We never produce off-grade copper,” he says, adding that “in fact, it is inclusive sustainable development which is at the core of what we do; while seeking economic returns by increasing investment in the copper project, we attach more importance to the social benefits we will bring to the country and local people.”

Focus on protecting the environment

Myanmar’s Monywa Copper Mine comprising of Letpadaug, Sabetaung and Kyisintaung deposits is the site of the second-largest copper mine in Southeast Asia. Early exploration and development started from the middle of the 20th century, the mine is located in a semi-arid area and has around 50,000 people living in its vicinity.

“Our Environment and Social Management System is in line with IFC standards and efforts to preserve the natural environment are a key aspect of our corporate agenda,” Mr. Geng Yi explains.

“It is our commitment to the local community that we will not upset the ecosystem within which we work. We also have a nursery which includes a tea plantation and we recycle freshwater from our mine pit for irrigational purposes. We adhere to a strict zero-discharge policy, meaning that none of the solutions or liquid flows associated with our operations mix with those of the surrounding natural environment.” Mr. Geng Yi emphasizes.

Commitment to the Employees and Commitment to CSR

Myanmar Yangtse and Myanmar Wanbao provide training to its 3,500 local employees, teaching them international-standard skills. “Our goal is not only to become a leader in the industry, but also to become Myanmar’s partner in education and mining expertise as the country opens its doors to the world. The wellbeing of our workers, who form part of the local community, is something we not only desire to ensure, but is also an important clause within our legally binding contract that lays out the framework for our Myanmar operations.” Mr. Geng Yi says.

Both Myanmar Yangtse and Myanmar Wanbao are strongly committed to corporate social responsibility (CSR). “At Yangtse and Wanbao, we are committed to our community. Our aim is for our community to develop and prosper hand in hand with us. We believe in shared prosperity and mutual benefit.” Geng Yi says.

The mining companies have done a whole variety of CSR activities to benefit the local people in this area, ranging from road repairing, drinking water system, electricity installations to school building, scholarship program, healthcare and monasteries and pagodas building.

Mr. Geng Yi cites the mobile clinics that serve rural villages in the project area as an example, saying that, between May 2012 and the end of 2013, the clinics treated over 50,000 villagers who would otherwise have had little or no access to healthcare. In addition, Myanmar Yangtse’s Mine Town Hospital treats employees and members of their families. It has also provided a healthcare program to pregnant women and children under five years old within five miles for more than ten years.

Myanmar Wanbao has committed to put USD 1 million to its CSR programs every year at the construction stage and when the mine enters into production. Together with its Myanmar partners including state-owned Mining Enterprise No 1, 2% of the net profit will be allocated to CSR projects every year, according to Mr. Geng Yi. “Myanmar Wanbao is not alone in implementing the CSR projects and Myanmar government is also playing a critical part,” he says. Myanmar Yangtse has also developed a long- term environmental management and CSR plan for its project.

Geng Yi points out, “Comparatively speaking, this is an unusually generous social investment by a foreign company. Maximizing shareholders’ value has taken a backseat as our strategy shifts to maximizing stakeholders’ value. We believe that when our CSR approach truly benefits local people, financial returns will follow naturally.”

50,000 tonnes per year by 2015

Myanmar Yangtse produced 16,000 tonnes of Cathode Copper in 2013 and aims to increase this capacity to 50,000 tonnes per year by the end of 2015, which does not include the new capacity of 100,000 tonnes per year to be realized by Myanmar Wanbao’s ongoing new development of Letpadaung deposit. Mr. Geng Yi says, “Over the next two years, we will keep bringing fresh investment in heavy machinery, operations expansion, application of new technologies and in recruiting and training a new generation of local human resources etc. To achieve this goal, we will also continue to focus on responsible mining, sustainable development and raising the living standard of the local community.”

Both Myanmar Yangtse and Myanmar Wanbao are open to strategic partnerships. Mr. Geng Yi explains, “As Myanmar’s industrial sector develops and as Wanbao Mining’s operations in Myanmar expand, we look forward to working with partners that can cooperate with us in terms of strategic investment, technology, managerial expertise, and inclusive development to boost backwards and forwards industries in Myanmar. What we can offer, in turn, is local market knowledge and a thorough understanding as well as management of the risks involved in investing in this sector. Myanmar is a very special place and deserves a specialized and tailored approach by international investors.”

Mr. Geng Yi welcomes visitors to the mine. He says, “We invite potential business associates and the media to visit our site with an open mind and see for themselves the development that is taking place in surrounding villages. The mine is set to be a model project for those to come in Myanmar, and we believe that, together with the government, as well as local and international partners, we can realize this shared vision.”

Highlight:

“At Yangtse and Wanbao, we are committed to our community. Our aim is for our community to develop and prosper hand in hand with us. We believe in shared prosperity and mutual development.”