Business is slow in Mogok. That is the general feeling one gets talking to most dealers and miners in the town. But while many agree that business is bad, few agree on the cause. David Fish, mine manger for owner Joseph, says many Mogok Miners who rushed to Mong Hsu have since returned because nobody is buying there and they can’t make any money. He believes it is all due to the quiet international market. He also believes joint venture mines have proven inexplicably less successful than the old “leipyin” mines ever were.
Compounding the problem, he has heard other people say business has become more difficult since joint venture mining was legalized.
During the socialist era, he says, when the gem business was nationalized, somehow private business continued on a small scale. There was more equitable and poor people could do relatively well. Now, however, a few rich miners control most of the joint venture mines and, since they have plenty of money are under less pressure to sell and have well-established channels of distribution. As a consequence, many stones don’t reach the local gem markets.
U Lu Maung, a specialist in semi-precious gems, says sales are steady for him, but other people have complained of fewer stones being offered for sale. He blames the scarcity on low production and the fact that some joint venture mines in the municipal area had to be temporarily closed while the government investigated reports that the mines were encroaching on surrounding residential areas and damaging homes and businesses. He says prices are going up right now, but he expects them to fall again after the mines reopen.
Dr. Saw Naung Oo also notices a rise in the prices of semi-precious stones, but he believes this is due to increased demand from the many new jewelry shops springing up in Rangoon. Previously much of it was sold in border trade with China, he says, but that has fallen off.
Miners have reason to be optimistic this year. Three small earthquakes shook Mogok last April and appear to have loosened the soil and, as a result, there have been more landslides than usual despite the lighter-than-usual rains of the wet season. Landslides are considered omens for miners and there might be some truth to that belief.
In addition to reports of new ruby and sapphire mining areas, Dr. Saw Naung Oo reports that two new semi-precious deposits have also been found. One in Mainglon is producing green and pink tourmaline with some large clean crystals while the other in Taung Daw is yielding amethyst and fluorite.
John Lunbeck of Kerry Securities, a Hong Kong-registered investment company, is optimistic about Burma’s overall economic potential. With less red tape and less competition than in Vietnam, he feels Burma is a better investment, especially for manufacturers who can make use of the country’s inexpensive labor. The biggest obstacles the industry faces are unreliable power supplies and out-dated port facilities. However, half of this problem is being addressed. Plans are afoot to double the power supply by February 1996 when a joint venture between a private company and the Burmese government goes on-line.-Scott Montgomery
| Reburied Treasure David Fish, mine manager for owner U Joseph stands in front of a cave which he hopes will bear a rich reward. Several years ago, soldiers surprised an illicit miner who was just about to unearth a large ruby. The miner ran to evade the soldiers and was forced to leave the gem behind. Before he could return, a landslide covered the mouth of the cave, Fish says he is near that famous ruby; his miners have discovered the first miner’s tools. Unfortunately, another landslide has covered the cave once more, so the ruby will have to wait a bit longer. Fish plans to work around the clock, however, to recover, to recover the ruby before the mine lease expires in ten months time. |