Myanmar Metals to sell Bawdwin project in wake of coup

YANGON, July 26 (Reuters): Myanmar Metals has announced that it plans to sell its 51% stake in Bawdwin silver, lead, and zinc project in Myanmar, citing difficulties in securing financing for the US$300 million project after a coup led to social unrest earlier this year.

Businesses have collapsed in the South-East Asian country ever since the military coup, which prompted widespread protests and strikes. The violence displaced thousands and killed hundreds of civilians.

"It is the Board's view that the procurement of project finance in the near term by the company would be extremely problematic and realistically unlikely," Australian-based Myanmar Metals said.

Ever since the coup this February, all parties that had shown interest in financing the project in the Shan State of Myanmar have withdrawn, the company said, adding that it will lose almost all of its A$11.4 million (US$8.37 million) of cash reserves in less than a year if it were to stay involved with the Bawdwin project.

The best path forward, Myanmar Metals said, will be to sell its stake in the project or the company as a whole. It has already started to look at international and local players.

Foreign companies are scaling back or even pulling down operations while those with ties to army-linked firms are being urged to cut them.

Earlier this month, Norwegian telecoms firm Telenor sold its Myanmar business, blaming the difficulties of operating under the military junta and dealing a blow to activists who say they relied on the only Western operator for communications.

China-based Yintai Gold Co proposed a A$66.5 million takeover of Myanmar Metals last month. The Australian metals explorer said on Wednesday it was working towards facilitating access to due diligence. - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Aseanplus News

China and EU to hold talks on Tuesday as sanctions, Aukus and Lithuania throw up complications
Former chairman of luxury liquor firm Kweichow Moutai sentenced to life in prison for bribery
Beijing blasts ‘criminal record’ of US in Hong Kong with list detailing more than 100 examples of alleged interference
The everyday liquid that could fuel China’s race to green car targets
Covid-19: Khairy urges pharmacists to guide Malaysians into endemic phase
Najib eyeing Umno presidency - bravado or real comeback? Premium
CPO futures expected to trend lower on profit-taking next week
Covid-19: M'sia's death toll now at 24,931 with 250 total fatalities reported Friday (Sept 24)
Asean News Headlines at 10 pm on Friday (Sept 24)
Singapore reports 1,650 new Covid-19 cases; 3 elderly men with chronic health problems die on Friday (Sept 24)

Stories You'll Enjoy