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Myanmar gems sale nets record $2.8 billion |
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Gems in Myanmar hit
record sales of more than 2 billion
euros ($2.8 million) during the 12-
day ernporium last month, a trade
official said, The figure was close to
the total 2.2 billion euros taken in
over three emporiums last year and
was the biggest single sale of gems
since Myanmar started holding the
events 47 years ago.
Gemstones are a lucrative
source of income or Myanmar’s
military government and its business
cronies. Despite embargoes, many
of the gems reach Western countries
via other Asian countries, Hong
Kong and Taiwan in particular. The
fair in the capital, Naypyidavv,
attracted 8,719 gems traders, 5,000
of them from overseas, with 3,608
lots of jade sold. a senior official
from Federation the Chamber of
Commerce and Industry
announced.
The United States Congress
passed a bill in October 2007 to
expand sanctions outlawing
domestic sales of rubies. jade and
other gems routed through
Myanmar’s neighbours. Experts say
this has had only a limited impact
on the junta.
Myanmar produces more than 90 percent of the world’s rubies and
fine-quality jade. Most of its jade
and gemstone mines are run by the
defence and mines ministries and
businessmen with close connections
to the regime. It holds emporiums
three times a year. The last fair, in
November, recorded sales
amounting of 1.08 billion euros.
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a) A buyer examines a jade stone found near a Hpakant mine in Kachin state b) Customers examine jade at the Gems Emporium in Naypyidaw
c) Customers check jade at the Gems Emporium |
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Myanmar used to limit
publicity of the fairs but has become
more open in the last year, lt has
launched a drive to attract foreign
investment., particularly from Asian
countries, to what it says is a market
with vast potential held back by
sanctions.
Altogether 16,939 jade lots,
206 gems lots and 255 pearl lots
were on sale at the 48th Myanma
Gems Emporium. Burma earned
$1.7 billion from selling jade to
neighbouring countries in 2010, an
increase from $198 million in 2005, officials
said.
According to data
and photographic evidence gleaned from
gems emporiums in
Naypyidaw over the past
two years, the regime
sells gems in Euros, not US dollars. One jade lot sold to a Chinese businessman at the emporium in late 2010 was valued
at rnore than 5 million euros.
Military-run Myanmar
Economic Holdings Ltd and
companics run by cronics. such as
Tay Za's Htoo Group of Companies.
Zaw zaws Max Myanmar Group
of Companies, and Ne Win Tun’s
Ruby Dragon Jade & Gems Co ltd.
are involved in jade and other gem
mining in Burma. In recent years.
Max Myanmar unearthed an
enormous slab of jade weighing
115,000 kg from one of its sites in
Hpakant Township. Kachin State.
Although Burma earned $1.7
billion from jade exports last year,
few if any benefits are passed on to
ordinary citizens. including local
Kachin people who say they see
nothing from the mining profits.
Burma ranked second from bottom
of Transparency lnternational's
2010 corruption index out of 178 countries. |
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d) Thousands of people attended the Myanma Gems Emporium e) At 115,000 tons, the largest dyke of jade in the world, exhibited in Hpakant
f) Weighing well over a ton, this stab of jade sold for 3.7 million Euros. |
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Sale prices for Burma’s jade have jumped as much as ten times in the past year, according to gem merchants who attended the 48th Myanmar Gems Emporium. Despite the price hike, as many as 17,000 sets of jade were bought, one gem business owner at the emporium said.
"Jade prices are going very highabout 10 times more than last year's price," he said, "A piece of jade,
that was worth 200,000 kyat ($230) to 300,000 kyat ($340) about three years ago is now worth about 1.5 million kyat ($1,705) to two million kyat ($2,272)." He added that the dramatic increase was
largely down to growing demand from Chinese buyers , who were also hungrily snapping up Burmese pearls which were the second bestselling gem at the emporium. Another gem businessman said that Chinese traders made up three-quarters of buyers in Naypyidaw last month.
With bans on imports of Burmese jade to the US, China has quickly become the world’s top market for the stone, which is mined in Burma's northern Kachin and Sagaing
state. often in operations backed by Chinese businessmen. "China has high buyer demand for jade as the country’s economy is growing," said another man, "And the Burmese government, which is sanctioned by western countries, was looking to sell the gems, so it’s a win-win situation. "He added that the Burmese government "doesn’t care about the international sanctions and they wanted to show off how much money they can still make from selling the gems".
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g) A small of jade at the fair in 2010, sold for 5 million Euros. H) A small of jade at the fair in 2010, sold for 3.9 million Euros
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Burmese government figures climbed that profits made from selling jade has
climbed from $198 million
in 2005 to $1.7 billion in 2010,despite seeing falls in profit from
other precious stones. The last gems
emporium in Naypyidaw in November last year made record
sales of $1.4 billion, suggesting that the sanctioned industry is buoyant. Burma
is thought to produce around 90 percent of the world’s jade,
much of which goes to China and
other regional nations. such as Singapore.
Most of the produce comes from Burma's ethnic regions, particularly the Hpakant mines in Kachin state where the conditions
for workers are notoriously poor.
Around 30 governrnent-licensed
companies mine precious stones in Kachin state. |
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