Yunnan miner tries its luck in Myanmar

China Polymetallic Mining, the biggest lead and zinc resource holder in Yunnan province, is exploring opportunities to acquire resources in neighbouring Myanmar.

Earlier this year, the miner sent a geologist and other staff to scout out investment prospects recommended by Myanmar government officials eager to see foreign investment in the country's largely untapped mineral wealth.

"Relative to the mainland, the chances of success in acquiring Southeast Asian mining assets are much higher and the operating costs are lower," chief financial officer Li Tao told the South China Morning Post late last month.

But competition for mining assets on the mainland was keen, he added, which meant prices were often bid up despite the fact that many of them were higher-risk early exploration projects.

Foreign firms were expected to be allowed to wholly own projects in Myanmar, and they would enjoy five-year corporate tax holidays, Li said.

The terms are part of Myanmar's new mining law that is expected to be passed this year to boost investment in the rapidly liberalising country, which ended decades of military rule in 2011 and saw the lifting of most international sanctions subsequently.

Li said careful due diligence was important as there were legal, political and security risks to consider. China Polymetallic might avoid the less stable northern region and focus on the east, he added.