Production of gold set to double, officials say

Despite the amount that national gold production increases in 2013, it would likely grow two-fold in comparison with previous years if mining is resumed in Kachin and Kayin states, where it is seeking peace, a government mining official said.

“This year’s increase is due to large-scale production in Yamaethin in Mandalay Region and Kalaw in Shan State. But the production in Kachin and Kayin has declined since 2011,” U Aye Zaw, Director (Production) of No. 2 Mining Enterprise of the Ministry of Mining, told The Myanmar Times.

He said that of 200 mining blocks in Kachin State, only 10 remain open, while only one or two of 150 in Kayin State are extracting gold.

“If some areas are open following peace being made in those two states, gold production would almost instantly increase by 40 percent beyond current production,” he said.

Myanmar’s total gold production currently comes from known deposits in two states, Kachin and Kayin, as well as four regions, Mandalay, Sagaing, Bago and Tanintharyi.

Mining contracts currently require that each functioning gold mining firm must supply at least 24 ticals (0.24 viss; 1 viss equals 1.6 kilograms) to the state each year, he continued.

“This year’s supply is 300 viss, which is double of last year’s,” U Aye Zaw said. “This is partly because of outstanding debts from last year, and increases in productions of Sagaing and Mandalay Regions.”

Neverthess, some miners extract outside of their leases and keep unrecorded yields, thus avoiding having to make government payments.”

source: The Myanmar Times
http://www.mmtimes.com/index.php/business/8438-production-of-gold-set-to-double-officials-say.html