YANGON, Feb. 16 (Xinhua) -- A Russian company will conduct gold exploration in Myanmar's northernmost Kachin state and northwestern Sagaing division with the cooperation of the Myanmar mining authorities, the state-run newspaper New Light of Myanmar reported Saturday.

    Under an agreement signed in the new capital of Nay Pyi Taw Friday between the Victorious Glory International Pte Ltd of the Russian Federation and the Geological Survey and Mineral Exploration Department of the Myanmar Ministry of Mines, the Russian company will undertake the gold exploration along the Uru River between Phakant of the Kachin state and Homalin of the Sagaing division, the report said.

    Myanmar has also been encouraging the country's private sector to mine gold, allowing more such engagement by them at many prospective gold mining blocks across the country.

    Up to last year, 380 small blocks for gold mining had already been granted to the private entrepreneurs and most of the gold are produced from those blocks in Sagaing and Mandalay divisions, according to the state-run Myanmar Mining Enterprise (MME)-2 which also said besides the two divisions, other small blocks have also been under exploration in Kachin, Mon and Bago states and divisions.

    As set by the state, private enterprises are allowed to conduct gold exploration activities on mining blocks under a lease term with the MME for at least three years, the sources said.

    Official statistics show that foreign contracted investment in Myanmar's mining sector has amounted to about 534.19 million U.S. dollars as of the end of 2007 since the country opened to such investment in late 1988, accounting for 3.6 percent of 14.736 billion dollars' total foreign investment and standing as the sixth largest sector ally.

    Other foreign firms engaged in mineral exploration in Myanmar include those from Australia, China, Japan, Malaysia, Singapore, Thailand and the United States.