Myanmar to allow private mining in noted ruby area

Myanmar's government has decided to allow local people and firms to mine for gems in Moegoke, an area famed for its rubies, for the first time since the army seized power in 1962, according to a state-run newspaper on Tuesday.A civilian government took office in March and -- against expectations, since former soldiers hold key positions -- quickly embarked on economic and political reforms.

 Myanmar language daily Kyemon quoted Minister of Mines Thein Htike as telling local people at a meeting in Moegoke, about 550 km (340 miles) north of the main city, Yangon, that they would officially be allowed to mine gems again."Local private people and companies will be allowed to mine precious stones in Moegoke areas with the intention of producing more gems, creating more job opportunities, reducing poverty and working for regional development," the paper quoted Thein Htike as saying on Dec. 10.

 After the military took power, people in Moegoke were deprived of their traditional right to mine gems. Companies owned by the government or close business associates of the government have dominated the mining of gems since then.Myanmar produced 46.81-million kg of jade and 1.69-million carats of ruby among other precious stones in fiscal 2010/2011 (April/March), up from 25.79-million kg of jade and 1.43-million carats of ruby in 2009/10, according to the official Central Statistical Organisation.

 The country is one of the world's biggest sources of precious stones and holds emporiums three times a year to sell gems, jade and pearls. Apart from local traders, the buyers tend to come from neighbouring countries and elsewhere in Asia.Total proceeds from the emporiums last year amounted to about 2.2-billion euro ($2.91-billion).

 The last sale in July brought in 1.1-billion euro, much lower than expected by officials because high-quality jade lots failed to attract many bids.The next one is scheduled to be held in the capital, Naypyitaw, from Dec. 24 to Jan. 3.