For centuries emperors, kings and warlords have vied for control over the valley of Mogok, north of Mandalay, once known as the “land of rubies” for its extraordinary treasure trove of the precious gem.

In October, the US lifted sanctions barring imports of the rubies in recognition of the country’s shift towards democracy under the new government of politician and diplomat Aung San Suu Kyi. Experts fear any ensuing boom will end up lining the pockets of the military elite and their friends who control much of the gem trade.

Aye Min Htun earns less than US$200 a month working in a small, open-cast mine on the valley floor, but if he found a valuable ruby his commission could set him up for life.

“My dream is to set up a business if I am successful in mining,” the 19-year-old told Agence France-Presse on a rare recent visit by journalists to Mogok’s mines.

Behind him a dozen men use high-pressure hoses to dislodge earth from the side of the crater, which is then sorted on wooden tables by barefoot workers. It is dangerous work – landslides are a frequent hazard. “I’m always reminding the mine workers to be careful … They are just kids,” said manager Pauksi, who goes by one name. Every few minutes deep rumbles rise from the belly of the earth. They come from dynamite detonated in the next mine, blasting shafts hundreds of feet into the hillside.

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Production in Mogok has surged since the mid-90s when the former junta first allowed in private companies, bringing with them heavy machinery and more intensive mining methods. Today, the Mogok valley is pockmarked with mines, but locals see little of the profits.

In 2003, the US imposed its first round of sanctions barring imports of gems from Myanmar in a bid to starve the military government of funds.

The industry is overseen by the Myanmar Gems Enterprise (MGE), a state-owned firm run by former military men that was taken off the US sanctions list in May. But experts believe much of the real power lies with the Myanmar Economic Corporation (MEC).

Many private companies in Mogok are also believed to be operated by Thais and Chinese, who use shell companies to bypass laws barring any foreigners from running Myanmar’s mines.

The highest-quality stones are smuggled across the country’s porous eastern borders to Bangkok or Hong Kong, where they are polished and made into jewellery.

According to www.atimes.com