Severe economic hardship in Burma followed by the global economic meltdown, have forced people in Kachin State, who rely on natural resources, to shift from their original business ventures to gold mining, said local businessmen.
Residents of Myitkyina, the capital of Kachin State told KNG, the number of people leaving for gold mines in Kachin State have increased dramatically. The exodus includes jade traders, jade tycoons, timber traders and civilians.
These people are making a beeline for the largest gold mining fields in the state such as Hukawng (Hugawng) Valley, upper N'Mai and Mali Rivers, Putao, Chipwi (Chibwe) and Law Hkawng, said local gold miners.
In keeping with the rush, gold mining equipment, oil and rations for gold miners are also being transported in bulk by trucks and ferries from Myitkyina to the gold mining fields every day, said eyewitnesses.
According to local businessmen, there are two main reasons for people heading for the gold mines--- first is that gold prices have increased in Kachin State while other businesses have collapsed since last year. The second reason is that the state's main economic ventures jade and timber markets on the Sino-Burma border have crashed since last year.
The people in Kachin State are facing severe problems of lack of cash and the imbalance of in and out Burmese Kyat circulation where people find it hard to get hold of the Kyat but spend it easily, said Myitkyina's residents.
On the other hand, people every day are crowding mortgage shops which are owned by Chinese in Myitkyina where they are mortgaging their jewellery, cars and motorcycles, added locals.
Besides, more and more land and house owners on the roadside around Myitkyina are selling their assets to businessmen and moving to places where land and houses are cheaper, local people said.
A store owner in Tatkone also called Dapkawng quarter in Myitkyina told KNG, the gold business alone will not help shore up and help recover the current collapse of the economy in Kachin State. The solutions to the problems lay in democratic reforms in the country.
