HEFTY fuel price rises last month will not dampen production of jade and gemstones in Myanmar, several gem industry sources said last week.

Producers will stomach the higher operating costs for pumps, drills and transport because they are pushing to maximise production during limited mining concessions, said U Hla Win, deputy general manager of Ruby Dragon Co., which operates several gem mines in upper Myanmar.

Once a mining company’s three-year contract to explore a block expires, the firm must reapply to continue work at the site. U Hla Win said this encouraged miners to push ahead with production regardless of increases in outlay, such as those related to the government’s move to raise fuel prices from August 15.
Petrol was increased from K1500 to K2500 per gallon and diesel doubled to K3000 per gallon.

“Miners produce aggressively in their given time, so I don’t think production is going to decrease,” U Hla Win said, adding that the uncertainty of acquiring exploration blocks forced miners to make the most of their opportunities.
However, the increase in production costs is likely to be passed on to buyers in the form of higher prices for jade and precious stones, he said.

U Aung Myint, co-owner of jade producer FU MAY Jade & Jewellery, said the increase in fuel prices did not mean the gem industry was heading for hard times because it would not be difficult to recoup expenses from merchants and end users.

“The price of jade is soaring so I don’t suppose miners will be cutting back on their investments due to the higher fuel costs,” he told The Myanmar Times.
U Aung Myint said greater cooperation among miners by forming joint ventures would be one way to effectively overcome higher operating costs.