Myanmar to allow private mining in noted ruby area

YANGON (REUTERS) - Myanmar's government has decided to allow local people and firms to mine for gems in Moegoke, an area famed for its rubies, for the first time since the army seized power in 1962, according to a state-run newspaper on Tuesday.

A civilian government took office in March and - against expectations, since former soldiers hold key positions - quickly embarked on economic and political reforms.

Myanmar language daily Kyemon quoted Minister of Mines Thein Htike as telling local people at a meeting in Moegoke, about 550km north of the main city, Yangon, that they would officially be allowed to mine gems again.

'Local private people and companies will be allowed to mine precious stones in Moegoke areas with the intention of producing more gems, creating more job opportunities, reducing poverty and working for regional development,' the paper quoted Thein Htike as saying on Dec 10.