-::Myanmar Mining::-

YANGON. 2 1 Sept, MNA
The opening ceremony of special gold shop of Myanma Gems Enterprise of the Ministry of Mines was held on the ground floor of Myanma Gems Museum on Kaba Aye Pagoda Road this morning.
Under the guidance of the Head of State the special shop was opened for the public to purchase gold freely and easily.
The ceremony was attended by Minister for Mines Brig-Gen Ohn Myint, Deputy Minister U Myint Thein, Deputy Minister for Finance and Revenue Col HIa Thein Swe, officials of the ministries and guests.
At 10.40 am, Managing Director of No 2 Mining Enterprise U Hla Thein and Managing Director of MGE U Thein Swe formally opened the gold shop: The minister and guests observed gold coins, jade and jewellery and inspected private gold shops on the ground floor. The minister cordially greeted the buyers who came to buy gold coins.
The Minister and Party visited special gold shop of Myanmar VES Joint Venture Co. Ltd where they were welcomed by General Manager U Khaing Soe Tha and officials.
In the afternoon, Minister for Finance and Revenue Maj-Gen Hla Tun visited the shop. A gold coin weighing one tical (16.329 gm). is 26.0 mm in diameter and 2 mm in thickness. It is 99.99 percent pure gold.
People can buy gold coins at K 300,000 per tical. The two gold shops open daily from 9.30 am to 4.30 pm except Monday and public holidays.

MINES MINISTER RECEIVES CHAIRMAN OF IVANHOE LTD.
YANGON, 2 September

Minister for Mines Brig-Gen Ohn Myint received Chairman of Ivanhoe Myanmar Holding Ltd Mr. Robert M Friedland and party at his office yesterday evening.
Also present at the call were Managing Director U Saw Lwin of No. 1 Mining Enterprise of the Ministry of Mines and officials.

-::Myanmar Mining::-

YANGON, 13 Aug
No 3 Mining Enterprise of the Ministry of Mines and Kingbao Mining Ltd. of the People’s Republic of China signed an agreement on Mwaytaung nickel exploration and survey and feasibility study at the Sedona Hotel yesterday. The survey will be conducted in Kale Township in Sagaing Division and Tiddith Township in Chin State.
Present were Chairman of Myanmar Investment Commission Minister for Science and Technology U Thaung and members, the ministers, the deputy ministers, heads of departments, Chinese Ambassador Mr Li Jinjun and embassy staff, Chairman of Kingbao Mining Ltd Mr Yang Xiaoqing arid officials.
Minister for Mines Brig-Gen Ohn Myint, Managing Director of No 3 ME U Hsan Tun and Chairman Mr Yang Xiaoqing spoke on the occasion.
Next, Managing Director U Hsan Tun and Chairman Mr Yang Xiaoqing signed the agreement. Ministers U Thaung and Brig-Gen Ohn Myint presented the permits of MIC and the Ministry of Mines to Chairman Mr Yang Xiaoqing.
Two major nickel deposits are found in Myanmar. One is in Tagaungtaung nickel deposit in Thabeikkyin Township in Mandalay Division. The survey is being ccnducted by No 3 ME and China-Non-ferrous Metal Mining and Construction (Group) Co Ltd of the PRC.
Mwaytaung nickel exploration and survey will be conducted with the investment Kingbao Mining Ltd. Nickel production will start if there is good. prospect for production on commercial scale.

News UpdateWe inform to our clients about Myanmar Mining news.
- Pearl company to invest $1 million
- Painite no longer rare
- Once-booming crystal market continues decline
- The Ivanhoe prepares to increase copper production
- Agreement on joint exploration of copper and other minerals signed
-Joint Venture Coordination in Myanmar
-Set Ga Done Gold Project
- China Non-ferrous Metal Mining & Construction gets Myanmar approval
- Ivanhoe Monywa Copper Mines
- Geological Survey and Mineral Exploration (DGSME) under the Ministery of Mines
- Myanmar Mining News
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Pearl company to invest $1 million
Myanmar TimesJuly 3, 2005
A PRIVATE Myanmar company is negotiating with the state-owned Myanma Pearl Enterprise to begin joint production of cultured pearls in Tanintharyi Division, a senior government official told Myanmar Times last week.
After the deal has been finalised, the Padamyar Yaung Chi company will invest US$1 million in producing cultured pearl within four years, said U Sein Lwin, the general manager of the enterprise.
The money will be spent on equipment, labour and other facilities, he said.
U Sein Lwin said the company’s proposed pearl farm will be located at Small Mali Island, which is 15 nautical miles (9.3 kilometres) from Mali Island where the enterprise already operates a pearl farm.
“The company will start oyster breeding operations in 2006,” he said.
Padamyar Yaung Chi will be the sixth pearl-producing company to start a joint venture with the enterprise, said U Sein Lwin.
Two Myanmar companies and three foreign companies are already producing cultured pearls in Myanmar in cooperation with Myanma Pearl Enterprise.
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Painite no longer rare
Myanmar TimesJuly 3, 2005
PAINITE has lost it status as one of the ten rarest gemstones in the world with the discovery of large deposits near Mogok in Mandalay Division.
The presence of the deposit — located near the village of Wetloo-inn, about 20 kilometres west of Mogok — had been known to a few local villagers and gem dealers for about two years but only became more widely known in the country about six months ago, said Ko Kyaw Thu, a gemmologist and crystal dealer.
“This mother source of Painite was discovered by locals about two years ago and it was kept secret at that time, but later everyone in the area knew about it,” he said.
“More than 100 pieces of Painite have been found there, with the smallest being 0.5 carat and the biggest 50 carats,” Ko Kyaw Thu said.
With the discovery of such a large deposit, the gem can no longer be considered one of the 10 rarest in the world, he said.
“The advantage of the discovery is that now people in Myanmar can see many samples of Painite, which at one time could only be seen in museums in the US, but the disadvantage is that the status of the gemstone will go down, which means that people will lose interest in it and its value will drop,” he said.
Last November a doctorate student, Ko Kyaw Khine Win, discovered two Painite stones during a field trip to Kachin State in upper Myanmar.
Before this only 18 Painite stones had ever been found, the first in Myanmar in the 1950s.
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Once-booming crystal market continues decline
Myanmar TimesJuly 3, 2005
SALES of crystals in Yangon have steadily decreased since the market boom of the early to mid 1990s, said dealers at Bogyoke Aung San Market last week.
The main reasons for the decrease include the short supply of crystals on the market, higher prices and fewer buyers, said Ko Myat Toe of Crystal Hunter, a crystal wholesaler at the market.
“Our buying prices get higher year after year but the selling prices have not risen because foreign buyers will not pay the higher prices,” he said.
He said most of the buyers are from the United States, China and Thailand, and most of them are mineralogists and gemmologists who buy the crystals to add to their collections or for use at gem training schools.
Some of his customers are local dealers who resell the crystals to foreign buyers and to geology students, he said.
Ko Myat Toe said there are only about 35 crystal traders in Myanmar and the market is very small.
Another representative from Crystal Hunter, Ko Myo Myint Oo, said the market started to decline following the September 11, 2001, terrorist attacks on the US.
“Many of our regular buyers have not come in since then,” he said.
In Myanmar, crystals are produced in Mogok — home of the world’s finest rubies —and Thebaik Kyin in Mandalay Division, Momeik and Mongshu in Shan State, and Namyarseik in Kachin State.
Ko Phyo, the owner of Rocky Gem Shop in Yangon, said crystal sales have dropped because of a lack of direct foreign buyers.
Even though there are local buyers in the market, they resell to foreign countries, he said.
“We do not have new buyers,” he said.
Ko Sunil, a crystal shop owner, also agreed.
“Our main customers are foreign buyers and local gemmological students, but these days there are fewer foreign buyers coming to Myanmar,” he said.
Professor Hla Kyi of Dagon University’s Geology Department said that crystals are bought by gemstone collectors and geologists.
The market was very good when the market emerged in the 1990s, but it slowed down within three or four years, he said.
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The Ivanhoe prepares to increase copper production
Myanmar TimesFebruary 7 2005
MONYWA copper mine is hoping to increase annual production from 39,000 tones to 50,000 tones next year, a senior executive with its joint venture operator said last week.
“We hope to go to 50,000 tones in 2006 once we have technical studies completed and when we get the government approvals,” said Mr. Steve Ross, the general manager of Myanmar Ivanhoe Copper Company Limited, a 50-50 joint venture between the No. 1 Mining Enterprise of the Ministry of Mines and Canada-based Ivanhoe Mines.
With a US$90 million investment, the joint venture is developing open-cut copper mines at the Sabetaung and Kyisintaung deposits near Monywa, in central Myanmar.
The joint venture began in 1998 with annual production of 25,000 tones at Sabetaung and output grew to 30,000 tones in the year to last November, Mr. Ross told Myanmar Times.
“We are currently producing 39,000 tones a year of London Metal Exchange Grade A cathode copper which is 99.999 percent pure. It is very special quality and very few mines in the world can produce that grade,” said Mr. Ross.
“We have increased production and copper prices are high, which have made our project very successful,” he said.
“The Myanmar economy is the main beneficiary of our production, we purchase locally where possible. We use local contractors.
The government receives royalties and power payments and almost all the employees are locals,” Mr. Ross said.
He said copper prices had risen to $3200 a ton, from $1600 a ton 18 months ago, and the joint venture was making more profits despite an increase in operating costs.
“Copper is very similar to oil because it is a strategic commodity. Prices go up and down. But over the long term, the price is actually reasonable given our production costs,” said Mr. Ross.
The joint venture expected high prices to be maintained for the next two or three years because of a buoyant world market.
“Our copper is exported to Thailand, Japan, Indonesia and Vietnam through Marubeni Corporation, a Japanese trading house, he said, adding that about 10 percent of production goes to the domestic market, mainly for making copper wire.
Mr. Ross said 50,000 tones a year would be the maximum the joint venture could produce under its phase one project involving the Sabetaung and Kyisintaung deposits.
He said the joint venture had been mining about 12 million tones of ore a year. Four kilograms of copper is extracted from each ton of ore.
Mr. Ross said a drilling program just completed at the Sabetaung deposit had extended its life for another three years.
“We are very pleased with the result and are going to the stage two drilling program to further increase output from Sabetaung,” he said. After the Sabetaung deposit is exhausted, the joint venture will begin mining at Kyisintaung, Mr. Ross said. “Studies are continuing on the adjacent Letpadaung deposits, the second phase of the project, for which the joint venture is yet to receive government approval,” he said. “MICCL plans to develop Leptadaung in 50,000 tons per annum stages and ultimately increase joint venture production from 39,000 to 200,000 tons per annum. technical and commercial studies will be completed soon which show Leptadaung can make the Monywa copper region become a major supplier of premium quality cathode copper on the world market. We intend submitting these plans to the necessary government authorities soon,” said Mr. Ross.
The Monywa copper mine has about 1000 employees, including nine expatriates.
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Agreement on joint exploration of copper and other minerals signed Reuters 26 July 2004
Yangon - Geological Survey and Mineral Exploration Department and China Hainan Jiayi Machine Import & Export Co Ltd signed an agreement on joint exploration of copper and other minerals and conducting of feasibility survey in Hsinbo-Nanlihsan Block in Bhamo Township, Kachin State, Monywa Block-1 in Kani Township, Sagaing Division, and Monywa Block-2 in Salingyi Township at the Traders Hotel this morning.
Present at the agreement-signing ceremony were Minister for Mines Brig-Gen Ohn Myint, member of Myanmar Investment Commission Minister for Energy Brig-Gen Lun Thi, Attorney General U Aye Maung and departmental officials, Ambassador of the Peoples Republic of China Mr Li Jinjun and embassy officials and Chairman of the company Mr Zhang Sheng Can and members.
DGSE Director-General U Win Ti and Mr Zhang Sheng Can signed the agreement and exchanged the documents. Minister Brig-Gen Lun Thi and Minister Brig-Gen Ohn Myint presented the investment permit of MIC and the permit for exploration of copper and other minerals to Mr Zhang Sheng Can.
"The New Light of Myanmar" 27 July 2004
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China Non-ferrous Metal Mining & Construction gets Myanmar approvalJuly 23, 2004
China Non-ferrous Metal Mining & Construction (CNMC) has received approval from the government of Myanmar to invest US$500 million in nickel mining operations.
Mainland mining firms are increasingly eager to tap overseas metal resources, as demand in the rapidly industrialising country far exceeds domestic production capacity. China, the world's fastest-growing nickel market, imported 80,779 tonnes of nickel last year - up 110 per cent from 2002.
CNMC signed an agreement earlier this month with Myanmar Third Mining to locate and exploit nickel reserves in northern Myanmar's Mandalay province, according to China Non-ferrous Metal Mining Network.
The project is CNMC's latest overseas project, after its copper mine investment in Zambia, zinc mine investment in Mongolia and a lead-antimony alloy factory in Thailand, CNMC said in a statement published by the network.
The targeted reserves are located 120kms from the south-eastern border town of Liangjiang, in Yunnan province, and a few kilometres from Myanmar's Ayeyarwady River, which will provide water for the open-pit mining project.
CNMC has received permission to explore 40 sq km in the region. Preliminary studies have revealed an average nickel content of about 2 per cent, with likely total reserves of about 800,000 tonnes.
It plans to invest US$500 million to build a 30,000 tonne-a-year nickel production plant at the site.
About 65 per cent of the world's nickel is used to make stainless steel. Nickel is also used in non-ferrous metal alloys and electroplating.
China Jinchuan, the nation's largest nickel miner, produced about 60,000 tonnes of nickel last year - about 88 per cent of the country's output. Of the 80,779 tonnes of nickel China imported last year, 31.1 per cent was from Russia, 29.5 per cent from Australia and 15.9 per cent from Canada.
Tight global supplies and China's avaricious demand have boosted three-month nickel future prices in London by as much as 73.5 per cent over the past 12 months, to US$15,025 a tonne.
Estimated global refined nickel consumption this year of 1.3 million tonnes is forecast to exceed production by 15,000 tonnes, compared with a 35,000-tonne shortfall last year, according to the International Nickel Study Group.
CNMC general manager Zhang Jian was quoted by People's Daily in December as saying the firm would seek to invest in non-ferrous metal mines in neighbouring countries, central and southern Africa, Australia and Canada.
It would also consider lending money to cash-strapped nations to invest in mining projects, accepting repayment not in cash but in metals produced.
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Ivanhoe Monywa Copper Mines
Canada-based IVANHOE MINES LTD. is currently involved in the development of its Sabetaung and Kyisintaung (S&K) copper mine in Monywa, Myanmar. And, the company is now reportedly involved with potential investors in view of undertaking the second stage of its 50:50 joint venture with the local MINING ENTERPRISE NO.1.
The Letpadaung copper deposit under consideration which is located some 6 kms from the S&K mine has been estimated to be capable of providing 125,000 tons of copper cathode which would involve a process design similar to S&K.
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Geological Survey and Mineral Exploration (DGSME) under the Ministery of Mines
Department of Geological Survey and Mineral Exploration (DGSME) under the Ministery of Mines conducted exploration at the Huelon-Mohochaung area, which is about 32 kilometers (1cm) from the Bawdwin deposit in Shan State. DGSME also conducted exploration in Kachin State and northern Shan State for base metals and in Kyaukse District in central Myanmar for gypsum and limestone. In late 1999, the Ministry of Mines, through No. 3 Mining Enterprise (ME 3), signed an agreement with an unnamed Japanese company to conduct coal exploration in the Kalewa area of Sagaing Division, where an expansion of the coal mining capacity was planned for the future requirements of a 66-megawatt powerplant and a 500,000-metric-ton-per-year (t/yr) cement plant. By early 2000, nine core holes that totaled more than 2,000 meters (m) had been drilled by the Japanese company, which was to conduct feasibility studies for the capacity expansion at the Kalewa Mine (Soe Mra, 2000).
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Joint Venture Coordination in Myanmar
Three foreign companies were active in exploring for base metals and gold in fiscal year 1999-2000.
East Asia Gold Corp., which completed a feasibility study of an alluvial gold deposit in Thabeikkyin area, continued its copper and gold exploration in the Mabein North and the Thabeikkyin areas in 2000.
To explore for base metals and gold, Myanmar First Dynasty Mines continued its activity in a 182.5-square-kilometer (km2) area in Taungthonlone.
Ivanhoe Myanmar Holdings Ltd. (IMHL), in a 140-km2 area in Phaugtaw (Soe Mra, 2000).
During 2002, Cornerstone Resources (Burma) Ltd. of Australia was active in Burma for the third year. The company conducted a drilling program in the area ofthe Loncheng zinc deposit as a result of geologic assessments that indicated geochemical anomalies. It drilled 10 holes for a total depth of 553 m in Hill No. 1, and 5 holes for a total of 226 m in Hill No. 2. At yearend, findings were disappointing; only a few thousand metric tons of massive smithsonite was found (Than Htay, 2002).
In the Central Volcanic Belt of Burma, Myanmar Ivanhoe Copper Co Ltd. (MICCL) (a 50-50 joint venture of IMHL and ME-1) was involved in the Monywa Copper Project. The Monywa Project included the Sabetaung and Kyisintaung Mine (S&K Mine) and the Letpadaung deposit (6 km south of the S& K Mine). Studies in the area began in 1999 when the Metal Mining Agency of Japan (MMAJ) conducted the Indochina-Malay Project, which was a study of the Volcanic Belt from Pinlebu-Banmauk to Taungni (Mount Popa) to evaluate copper deposits in the region. The Indochina-Malay Project included an airborne geophysical survey and a regional geochemical baseline study. In 2002, IMHL reported that total ore reserves at the Monywa Project exceeded 800 Mt (Miyatake, 2002).
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Set Ga Done Gold Project LEEWARD CAPITAL CORP. Press Release - September 16, 2004
In January 2004, Leeward was granted a 700 square kilometre mining concession in Shan State in northern Myanmar. The initial exploration on this concession by the joint venture of Leeward and Jet Gold Corp. was carried out between mid-March and mid-May of this year. This program consisted of geological mapping, geochemical sampling, geophysical surveying, and diamond drilling. The program resulted in the identification of two new gold zones, the extension of an existing zone at Nga Mu Gyi, and the drilling of the Set Ga Done gold zone. The two new gold zones are hosted by carbonates which may be part of a Carlin type gold system on the property.
Soil sampling at Nga Mu Gyi resulted in the extension of the known gold mineralization toward the east of the original showing. Diamond drilling of the Set Ga Done gold zone was largely unsuccessful in penetrating the zone due to poor ground conditions in all but one hole. However, it was established that this zone has a true width 14 metres. Future drilling will utilize a much improved drilling system in order to overcome ground conditions in this area.
Once the rainy season has passed, additional mapping and geochemical sampling will be completed on the newly discovered gold zones and a second drill program will commence in the early part of next year. The follow-up work will be focused primarily on delineating the extent of Carlin type gold mineralization on the concession.
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