Russian company to explore gold in Myanmar

February 16th, 2008 - 1:55 pm ICT by admin  

Yangon, Feb 16 (Xinhua) A Russian company will conduct gold exploration in Myanmar’s northernmost Kachin state and northwestern Sagaing division with the cooperation of Myanmar’s mining authorities, the state-run New Light of Myanmar newspaper reported Saturday. An agreement was signed Friday between the Victorious Glory International Pvt Ltd of the Russian Federation and the Geological Survey and Mineral Exploration Department of the Myanmar Ministry of Mines in the new capital of Nay Pyi Taw.

The Russian company will undertake gold exploration along the Uru River between Phakant of the Kachin state and Homalin of the Sagaing division, the report said.

Myanmar has also been encouraging the country’s private sector to mine gold, allowing more such engagement by them at many prospective gold mining blocks across the country.

Till last year, 380 small blocks for gold mining had already been granted to private entrepreneurs, according to the state-run Myanmar Mining Enterprise (MME).

Besides the two divisions, small blocks in Kachin, Mon and Bago states and divisions are also under exploration.

As set by the state, private enterprises are allowed to conduct gold exploration activities on mining blocks under a lease term with the MME for at least three years, the sources said.

Official statistics show that foreign investment in Myanmar’s mining sector has amounted to about $534.19 million till 2007, since the country opened to such investment in late 1988.

Other foreign firms engaged in mineral exploration in Myanmar include those from Australia, China, Japan, Malaysia, Singapore, Thailand and the US.

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