Burma has opened its rich resources to the highest bidder, but gem mining remains restricted to Burmese and government-li-censed operators, say informed Burmese gem dealers.

            In April, the military government of Gen. Saw Maung declared 230 acres (92 hectares) in the areas of Mogok, Momeik, Mattaya and Thabeikyin open to the highest bid, according to the state-owned, Burmese-language Working People’s Daily. A translation of the daily was made available recently.

            Most gem mining, processing and cutting were completely halted in 1970, eight years after Gen. Ne Win seized power, installed a military government, then imposed isolation upon the Southeast Asian nation. That government cited foreign exploitation of roughs and undervalued merchandise as reasons for its tough decision.

            Burmese sources said recently that the Rangoon government controls “only 5 percent” of total gems smuggled to neighboring Thailand and India. The Burmese prefer to work for themselves rather than work at government-owned mines, where there are few qualified miners and strong anti-feelings for soldiers-turned-administrators with little knowledge of geology and gemology, according to a veteran Burmese cutter.

            The announcement in April hands the Burmese government 10 percent for mineral fees, 9 percent for handling charges and 32.4 percent for the state-run Myanmar Gems Enterprise. The highest bidder gets 48.6 percent, according to the Working People’s Daily.

            Bidding for the plots, at one acre (0.4 hectare) each, vary depending on the “reputation” of the sites, some areas the Burmese say are “very costly,” said one Burmese dealer in Bangkok. These sites provide new sources and alternatives for traders as the Mogok pits are repeatedly mined.