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  Suspension of jade mining in northern Myanmar leads to postponement of national gem sale


July 6, 2012


As a result of a decision by the authorities in Myanmar (Burma) to suspend all jade mining by private companies in Pha-Kant in the northern State of Kachin, the annual gem sale that was to be held in August has been postponed.

The suspension in mining came in the wake of a upsurge of violence in Pha-Kant, instigated by the Kachin Independence Army, which is a rebel group seeking autonomy for the ethnic Kachin people. The KIA and its political arm, the Kachin Independence Organization (KIO) have been a thorn in the side of the government in Rangoon for many years, conducting a guerilla campiagn, as well as collecting taxes at border crossings with China and engaging in various business sectors, including jade mining.

Some 400 jade mining companies operate in the Pha-Kant area, and they have reportedly been forced to pay large sums of money to the KIA.

Violence picked up earlier this year, with the KIA launching a series of attacks on passenger trains, rails and bridges on the Myikyina-Mandalay railroad. Before the government announced the suspension of mining activities, the KIA blew up four towers of the Shweli-Mansan national power grid in Namkham, Shan State, in upper Myanmar.

According to local media sources, after the government's announcement about the suspension, mine workers returned to their hometowns. Up to 2,000 miners were employed in the Pha-Kant area.

The last gem sale was held in July 2011, bringing in $1.5 billion in revenues, according to officials. About 5,000 gem traders from China, Hong Kong, Japan, Thailand and Korea attended the sales.

In 2010-11, Burma produced 46,810 tons of jade and 12.9 million carats of gemstones, which include ruby, sapphire, spinel and peridot.

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