Newmont pull out of Burma

[tinkyi@xxxxxxxxx]

U.S. company drops Myanmar gold probe

by Katsuhiko Meshino ( staff writer )
The Nikkei Weekly

Bangkok- Newmont Mineral Exploration B.V., a major U.S natural
resources-development company, has decided to pull out of its
gold-exploration project in northern Myanmar. Newmont retreat marks the
first withdrawal from myanmar by a U.S. company since U.S. authorities
imposed stronger economic sanctions in April.
	Analysts said the motivating force behind Newmont's move was mounting U.S.
public opposition to alleged human-rights abuses committed by Myanmar's
ruling State Law and OrderRestoration Council ( SLORC ).
	Newmont's move will have an impact on Myanmar investments by developed
countries.Analysts said Newmont's withdrawal is likely to come as a major
blow to the military junta.
	The company's start into Myanmar was marked by the signing of a contract
with SLORC officials in july of last year. The project involved investing up
to $ 154 million in thecountry to mine and develop gold deposits in the
Kyaukpahto region.
	Company officials said Newmont has already invested $ 40 million in the
project. 
Technical and financial problems linked with the company's recent merger
with Santa Fe 
Pacific Gold Corp. were cited as the official reason behind the Myanmar pullout.
	However, the junta has raised concern about the role U.S. public opinion
had on 
Newmont's decision. "We strongly suspect that political considerations were
behind the 
move," a Myanmar official said. The U.S. administration continues to
strongly criticize
business ventures to Myanmar.
	Newmont is not the only company with large-scale plans in Myanmar to be
confronted by the harsh glare of U.S. public sentiment. Oil giants Unocal
Corp. and Texaco Inc. are involved in offshore natural-gas projects in
Myanmar. Texaco executives have started talks with Malaysia's state-run oil
company, Petroliam Nasional Bhd(Petronas), about the sale of its stake in
the Yetagun project.
	PepsiCo Inc., which once dominated the Myanmar soft-drink market, left the
country in March. Public pressure forced the company to pull out of Myanmar
on all fronts in March.
	Compare with consumer-product companies like PepsiCo, natural-resource
developers are not as exposed to public opinion. Analysts said more
companies are being force to consider public opinion because of growing
opposition at a grassroots level in the U.S.

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Information Committee
Burma Youth Volunteer Association ( Japan )