Myanmar’s (Burma) ruby and sapphire are just as synony mous with high quality gemstones as they are with the colors red and blue. The corundum from Myanmar has another inescapable characteristic in the world market, however — a lack of available rough obtained through legitimate channels.

            The recent joint venture between Nouveau Co, Ltd of Thailand and Myanmar Economic Holding Co, Ltd, to create Myanmar Nouveau Co, Ltd, is part of a recent effort to help bring more corundum from Myanmar to the world market through legal channels. The official signing ceremony to mark the occasion was on February 9.

            Thai and Burmese patrols try to hinder the smuggling of corundum through their shared borders in order to maintain a centralized control over the gem trade. Over the years this issue has stressed relations between the two countries. Although the goal of the joint venture is not to resolve these disputes, it is a side benefit.

            “The reason the government established this company is because in the past, they [gemstones] would go to Thailand by the black market. The government wants to establish legal channels to open markets in Yangon [Rangoon],” said Wichart Mektrakarn, president/managing director of Nouveau Marketing Co, Ltd.

            The joint venture is a way to increase the amount of corundum from Myanmar to the world market through Yangon, while improving economic prosperity to Myanmar and aiding private industry in Thailand through proper channels. “Bangkok is one of the biggest markets for the gemstone business. From there we can set up a world market.” Wichart said.

            Economic expansion was the main point of Brigadier General Than Oo’s, chairman of the Myanmar Economic Holding Co, Ltd, opening speech at the signing ceremony. During his speech, he Brigadier General said Myanmar has yet to fully prosper from one of its most valuable natural resources—gemstones. The State Law and Order Restoration Council (SLORC) Law No. 8/95, is known as the Myanmar Gemstone Law. Issued last year on September 29, this law established citizens and foreigners can buy and sell gemstones, or take them out of the country, provided they do so in accordance with the articles of the gemstone law.

            The Brigadier General sees much potential for Myanmar’s economic growth through its gemstone mining, production and jewelry manufacturing, based on his impressions of the world market demand for Myanmar’s gemstones, partly assessed at January’s World Gem Fair in Tel Aviv. He stated after seeing rough samples from the Mogok and Monghsu mines, some foreign gem dealers were willing to propose ventures without even having visited Myanmar.

            The joint venture company has created much enthusiasm for the Myanmar Gemstone Law. The Brigadier General offered an open invitation to gem dealers from all over the world to take advantage of the new law, qualifying this statement with “Welcome To Ruby Land”

            In his speech, Wichart was quick to promote the potential for Myanmar’s economic expansion as well. He added the project will serve to enhance the quality of value-added to raw gemstones. Myanmar will experience economic growth with 90 percent of the produced material earning foreign currency, directly contributing to its economy.

            The mines in Monghsu and Mogok contain some of the finest ruby and sapphire in the world. Mogok, however has always yielded superior gemstones. A recent noteworthy find was a 1,100 carat sapphire rough from Mogok. A 40 carat ruby came from the same mine, with 10 to 15 carat sizes found periodically, said Wichart.

            Myanmar Nouveau’s Yangon factory presently employs 200 to 300 people, with plans to have 1,200 workers in the 5,000 sq/meter building within three years. The factory has been open for seven months, according to production manager, Thanasiri “Johnny” Supmapiem.

            “It’s hard to count the first three months as part of the training. We have experienced certain problems which slowed the training process down. For instance, we had to install a large capacity electrical generator on the factory site in order to have a reliable source of electricity for production. Other infrastructure problems slowed things down at first, but things are getting better,” Thanasiri said.

            The workers are presently using the lower-grade corundum. When the training period is complete in three to four months, they will eventually manufacture oval, marquise, round, square and drop shapes on the finer-quality corundum. Workers from Myanmar can be trained at a fast pace because of their education background, Wichart said.

            Wichart sees the signing ceremony as a successful and strong start to Myanmar Nouveau Co, ltd, the new joint venture company. “I love this country very much; it’s a good place to do business. The people here are very friendly as well,” Wichart said.