Min Aung Hlaing’s dream of domestically producing steel remains a castle in the air three years after he launched efforts to resume work on two steel plants suspended by the National League for Democracy (NLD) government that he ousted.
Months after his coup in February 2021, junta boss Min Aung Hlaing revived the two projects, which were halted in 2017 by the NLD-led parliament due to financial concerns.
Min Aung Hlaing has often complained about what he calls the “thoughtlessness” of the NLD government for suspending the projects, on which substantial amounts of state funds were spent.
In June, the regime formed the Project Executing Agency led by Industry Minister Charlie Than to ensure successful implementation of the two plants—No. 1 Steel Plant in Mandalay Region’s Myingyan and No. 2 Steel Plant in Shan State’s Pinpet near Taunggyi.
Deputy Industry Minister Khin Maung Nyunt, who is also the vice chairman of the Project Executing Agency, visited the two steel plants on Aug. 5 and 12, an indication that they are still not ready to resume operation.
The plant in Myingyan was 66.52 percent complete, and the plant in Pinpet was 98.86 percent complete when they were suspended by the then NLD-dominated parliament, Min Aung Hlaing has often lamented. But his regime is still struggling even to complete the remaining 1 percent of No. 2 Steel Plant (Pinpet) three years after resuming the projects.
It is a source of embarrassment for Min Aung Hlaing that his regime has not been able to finish the steel plant in Pinpet even with assistance from its major arms supplier, Russia.
The plant is a joint iron exploitation and processing project between military-owned Myanmar Economic Corporation (MEC) and Russia’s state-owned Tyazhpromexport.
Though the regime is struggling to start production, it has built infrastructure for transporting iron ore. Last year, Min Aung Hlaing opened a new railroad section linking the Pinpet plant with a road to the Myingyan plant.
Min Aung Hlaing has two reasons to push ahead with the two plants—to prove that he can do what the NLD government he ousted could not, and to reduce US dollar spending on steel imports.
The Project Executing Agency formed on June 11 is tasked with confirming the need for the projects, hiring experts to analyze them, and setting targets—an indication that the projects have gone nowhere.
During his visit to No. 2 Steel Plant (Pinpet), the junta’s deputy industry minister called on officials to prepare well for the pending visit of technicians from Russia’s National University of Science and Technology.
