A Myanmar-China joint venture will be building a metal refinery worth US$50 million located in Myanmar’s eastern Kayah State’s capital of Loikaw.
The Directorate of Investment and Company Administration (DICA) said in a statement that the joint venture, Global South Industrial Company (GSIC), was granted permission to build the refinery in Loikaw’s industrial zone.
DICA said the US$50 million investment will also see up to 500 jobs created in the refinery, which will be used to refine tin-tungsten and wolfram.
GSIC operates tin-tungsten mining near the Kayah State-Shan State border, which would be transported to the new site to be refined once it's operational and then be exported mainly to China, the Kayah State DICA secretary Daw May Myo Zaw said.
She added that the refinery will add value to the mining operations in the state as refined metals were more valuable and fetch higher prices than raw ones. “The state government is supportive of this project,” Daw May Myo Zaw said.
This refinery represents the second such investment in the state after Myanmar Golden Bonanza Company received permission to build a refinery. Five companies have collaborations with Kayah State’s No.2 Mining Enterprise, a state-owned company, with GSIC among them. A total of 400 tonnes has been produced from October 2018 to June 2019.
A Dutch animal-feed supplier, Royal De Heus, represents the only wholly-owned foreign investment in the state with a pig farm in Loikaw. Local investment mainly focuses on the travel and tourism industry. A report last year by the state noted that there were opportunities for investments in the extractive industries, particularly refineries, targeting the export markets.