On July 2, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced that it would add four companies to its list of entities because of the situation in Myanmar. One of them is King Royal Technologies Co., Ltd., a telecommunications company that allegedly provides satellite communications services to the Myanmar administration.
The other three are Wanbao Mining and two of its subsidiaries, Myanmar Wanbao Mining Copper, Ltd. and Myanmaryang TSE Copper, Ltd. Ltd.,) on the grounds that the companies had entered into revenue-sharing contracts with Myanmar Economic Holdings Limited (MEHL), which was added to the entity list in March because of its links to Myanmar's defence establishment.
The Entity List, or U.S. trade blacklist, restricts U.S. exports to companies on it, except in a few other cases, because of "a significant risk of engaging in activities contrary to the national security or foreign policy interests of the United States."
Wanbao's Letpadaung Copper Mine in Myanmar is Wanbao's largest overseas investment and the largest hydrometallurgical Copper project in Asia, with a total investment of US $1.065 billion. The hydrometallurgical Copper production capacity is 100,000 tons of cathode Copper per year. According to Wikipedia, in July 2013, First Mining, part of Myanmar's Ministry of Mines, re-signed a revenue-sharing contract for the Letpitang project with Mehl and Wanbao Minerals, under which the government would share 51 percent of the profits and Mehl and Wanbao 49%. In addition, 2% of the net profits from the copper project will be used for social and environmental investment.
