Saturday, July 11, 2015

UK mining firm looking to explore in Burmese jade area expects permit delay

Aurasian Minerals Plc (AuM) a British mining firm that has applied for a mineral exploration permit in a jade mining area in Burma has told its shareholders that it expects the permitting process to take some time. This admission was disclosed in a statement to shareholders issued last month that was penned by the firm's Non-Executive Chairman, Bruce Kay. Kay's statement was published in Aurasian's Annual Report.

Last year the firm applied for three exploration permits totalling 1,900 sq.kms in Burma but Aurasian is still waiting for these permits to be approved. “We expect that the approval process will initially be slow because of provincial issues, the national political transition and the ongoing revision of the Myanmar Mines Law,” Kay explained in his statement.

In January the London based firm announced in an update to shareholders that the previous month it had delivered "three applications for mineral exploration licenses to the Myanmar Mining Authorities." Though the firm did not say where in Burma these applications were made it did reveal that the applications were made in areas that according to the company there exists "jade and gem mining concessions".

The only known commercially viable jade deposits in Burma are located in Kachin state in Hpakant, an area that has seen repeated clashes between the government and the Kachin Independence Organization (KIO) since a 17 year ceasefire collapsed in June 2011. Fighting between the KIO and government forces has continued over the past few months in jade rich Hpakant. Clashes last month forced more than 200 civilians in Hpakant to flee from their homes. Although both sides in the conflict continue to meet regularly for peace talks it remains unclear when the fighting will come to a complete end.

In January's Progress Update Aurasian noted that that its exploration applications for gold, copper and silver were “pending” with Burmese authorities "due to the current security situation in the relevant areas."  According to Aurasian "when the areas have been given security clearance the authorities have indicated that they will then process the AuM applications after excising".

Although the firm, which was previously called Triple Plate Junction, did not specify what the "security situation" actually entails this appears to be a reference to the ongoing conflict between ethnic armed groups and the central government which continues in several parts of the country including in Kachin state.  Likewise the firm's statement did not elaborate on what needs to happen in the areas in question before authorities can give "security clearance".

Though the firm is relatively small, 22.36% of Aurasian’s shares are owned by the giant US mining firm Newmont Mining Corporation, the world's second largest gold miner. According to Aurasian, the firm entered into an agreement last year with a subsidiary of Newmont that allows for Aurasian to gain access to "Newmont’s proprietary database covering various exploration activities in Myanmar, Lao PDR, Malaysia, Indonesia and Cambodia".

Newmont was previously involved in Burma in the 1990's before pulling out in 1997 after spending some $40 Million to develop gold deposits in Kyaukpahto in northern Sagaing division.


Post a Comment

Note: Only a member of this blog may post a comment.