Russian firm seeks gold in army-ruled Myanmar

By Aung Hla Tun

YANGON (Reuters) - A Russian company has won exploration rights for gold and other minerals in army-ruled Myanmar, official media reported on Saturday, the latest business deal between the junta and one of its few international friends.

Myanmar's Geological Survey and Mineral Exploration Department and Russia's Victorious Glory International Pte Ltd signed a deal on Friday to explore for "gold and associated minerals" in the mineral-rich former Burma, the New Light of Myanmar newspaper said on Saturday.

The agreement covers an area along the Uru River in northern Myanmar, between Phakant in Kachin State and Homalin in Sagaing Division, the newspaper said, without giving further details.

The Homalin area is known for its deposits of gold, which has soared in value this year, hitting a record high of $936.50 an ounce in early February.

Phakant, also known as the "Land of Jade", is one of the country's richest sources of the precious stone.

The military, which has ruled the impoverished Southeast Asian nation since 1962, relies on sales of precious stones such as sapphires, pearls and jade as a key source of foreign exchange.

More than 90 percent of the world's rubies come from Myanmar.

International outrage over the generals' brutal crackdown on pro-democracy rallies in September last year triggered calls for tougher sanctions against the regime, including a boycott on Myanmar's gems and minerals.