Tuesday, 14 February 2012 21:28 Kun Chan
A fall in antimony prices and high taxes have forced several companies including Mya Pan, Htoo Aung Myat and Thuzana Pwint to suspend mining; the Nawarat and Aung Myay companies are still operating antimony mines.
“Antimony prices fell sharply and companies need to pay more money to obtain permits, so extracting antimony is not financially worthwhile. Only big companies can continue to run mines,” a manager of a company that suspended operation told Mizzima.
For a permit covering a 50-acre antimony block, a company must pay 250,000 baht (US$ 8,098) per year to the Karen National Union (KNU). Moreover, they must pay taxes to the Burmese government.
Kyainseikkyi Township is in the Dupalaya District controlled by the KNU.
Captain Htet Nay of KNU Brigade No. 6 said, “This year, there is only one big company, the Nawarat Company. The remaining are medium and small companies.”
In early 2011, the price of 40-percent quality raw antimony was 60,000 baht (US$ 1,943) per ton. Since June 2011, the price has gradually fallen; the current price is 36,000 baht (US$1,166) per ton.
Thabyu mine has been well known since the British colonial era. It is located 30 miles northeast of Three Pagoda Pass. To run a mine, companies need to buy blocks from the KNU Mining Department, register the business with the Burmese government and purchase the blocks (again) from the Burmese government.
In 2003-2004, the Nawarat Company, in the name of the Thabyu Mining Company Limited, started extracting antimony in the KNU area and since then other companies began moving into the area.
The KNU forbade timber production in the area controlled by Brigade No.6 since mid-2010, but it continues to give permits to companies to extract antimony.
“The KNU has allowed companies to run antimony mines with the agreement of the residents. The KNU allows companies to operate narrow blocks in which four or five people can work,” Captain Htet Nay told Mizzima.
The antimony produced from the Thabyu mine has been bought by China, Germany, Korea, Japan and Thailand. Antimony is exported via the Muse route to the Sino-Burmese border and via Three Pagoda Pass to the Thai-Burmese border.
Because of lower prices, many companies are storing antimony for sale later. It’s likely that they will sell antimony in March when prices are likely to increase, according to an owner of a company that extracts antimony.
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