One more private mining company, Top- 10 Stars Manufacturing Co Ltd, has signed a profit-sharing contract with the State Mining Enterprise-1 to jointly mine lead, standing the third cooperating with the government in mineral extraction so far during this year.

Lead will be extracted from Bawsai Mines, Kalaw township in Shan State (South), according to Tuesday's official daily New Light of Myanmar.

In the beginning of this year, two private companies, DELCO and Ngwe Chinthae, had signed profit-sharing contracts respectively with the State Mining Enterprise-2 and -3 to cooperate in mineral extraction.

The prior was on apportionment of tin and tungsten product quotas for the Kanpauk Mine, while the latter was on production of granite on commercial scale in Kyettaikkwin region.

Myanmar has been encouraging local and foreign investment in mining of such minerals as gold, gems, copper, lead, zinc and tin as well as coal.

Such private sector's involvement in mineral exploration work increased in Myanmar in 2009 following privatization of many mining blocks in the country during the year.

The local and foreign companies undertaking such work significantly include Asia World company working in Baw Sai mining block, Lin Pyae company in Yadanar Theingi, Myanmar Ivanhoe company in Monywa, India's Delco in Hinda and China's Non-Ferroutl Metallic company and Kenbo in Chin state.

As for gold exploration activities, some mining blocks were granted with private companies under a lease term with the state enterprise for at least three years and 35 percent of the gold output from the blocks is set to be shared by the state, while the rest is allowed to be sold by the private investor freely in domestic market.

So far, 380 small blocks for gold mining have already been granted to the private entrepreneurs and most of the gold are produced from those blocks in Sagaing and Mandalay divisions, the Myanmar mining authorities said, adding that besides the two divisions, other small blocks have also been under exploration in Kachin, Mon and Bago states and divisions.

Over the past two years of 2008 and 2009, Myanmar granted some five blocks in Shan state's Mongshu and Namhyar, Kachin state's Moenyin and Sagaing division's Mawhan Mawlu and Mandalay division' s Mogok for domestic investors to carry out gem and jade mining work on competitive bidding basis.

Earlier in 2006 and 2007, over 500 gems and jade mining blocks were allotted for such undertakings.

With each block measuring one acre (4,000 square-meters), these blocks were normally leased on a three-year term.

For the development of gem industry, Myanmar has been holding gem shows annually starting 1964 and introducing the mid-year one since 1992 and the special one since 2004. On each occasion, the country's quality gems, jade, pearl and jewelry worth of millions of dollars were put on sale mainly through competitive bidding.

In the 47th annual Myanmar gems emporium held in Yangon in March this year, a total of 7,000 jade lots along with other gems, jewelry and pearl lots were displayed, attracting about 6,000 foreign gem merchants.

A total of 400 million euros were earned from the emporium.