By Mick Elmore

The Mekong River, which stretches along the Thai-Lao border, flows near the area of the Huay Xay mine. Photo by Mick Elmore.

BANGKOK - Two Australians remain in a Lao jail for alleged involvement in exporting sapphires illegally from the land-locked country.

Kerry Danes, 42, and his wife Kay, 33, were arrested last December 23 for allegedly stealing sapphires from the country's largest gem mining operation.

Gem Mining Lao (GML) employed Kerry to provide security at the company's Vientiane, Laos, factory and at the mine site. The owners of GML, Bjarne Jeppesen and his wife Julie Bruns, fled Laos in May 2000 and the Lao government has been trying to get them to return to answer questions.

The Lao government has accused the Danes of helping to sneak sapphires out of the country, but so far have not charged them with any crime.

In April, the Australian government upped pressure on the Lao government to charge the Danes or release them. "The fact that they have not been able to . . . lay charges and subject them to full court proceedings is a matter of very grave concern to the Australian government," Foreign Minister Alexander Downer told Australian parliament in early April.

Australia is a key donor to land-locked Laos, allocating about US$10 million during the 2000-2001 fiscal year.

Speaking by phone from Denmark, Bjarne Jeppesen told Colored Stone he had nothing to hide and would be happy to discuss the matter when he returned to Bangkok.

He added that the Danes did nothing illegal and the situation was caused by other interests trying to take over the gem mine.

For the complete story, see Laos Seizes Sapphire Mine from the March/April issue.