Jan 9, 2009 (DVB), At least two people were killed and eight injured in an explosion in the Pha-Kant jade mine Kachin state on 31 December, according to local residents.

The mine is located under Uru creek and employs a large number of workers and heavy machinery.

"The mine was being operated by the PaO National Organisation, a ceasefire group led by U Khun Myat," he said.

"Apparently the explosion took place after some natural gas underground reacted with oxygen from the air outside," he explained.

"They recently started digging another tunnel near the spot where the previous explosion occurred in 2000."

Hundreds of mine workers were killed in an explosion in 2000 which also caused water from the creek to flood into the underground tunnels, submerging dead bodies and vehicles.

Reporting by DVB