YANGON, March 18 -- Heavy fighting went on in Kokang region of Myanmar as the government troops shelled hilly bases of the Kokang ethnic army near Laukkai on Tuesday, according to the military-run media, Myawaddy, Wednesday.

During the heavy clashes in three separate places near Laukkai, three from Myanmar military were killed with four others being wounded, the report said, adding that the Myanmar National Democratic Alliance Army (MNDAA) left three bodies and some small arms and ammunition.

As the government forces recaptured some strategic hills, the MNDAA had to retreat to the north and the northeast.

While the military columns are combing the Laukkai area, engagements occurred with the MNDAA almost on a daily basis.

Myanmar military also claimed that during its air strike against the Kokang ethnic army over last week, it has captured some more strategic hills in the heavy fighting.

Unconfirmed compiled statistics show that, so far the government side suffered 87 deaths with 218 wounded, while 101 bodies were seized from the MNDAA with 30 being arrested.

Meanwhile, peace negotiators of the Myanmar government and the country's ethnic armed groups have resumed peace talks in Yangon Tuesday, agreed to seek political ways for reducing conflict referring to the current fighting in Kokang region and Kachin state.

The formal 7th round of peace talks, preliminarily set for six days, would focus on eight remaining points out of 104 of the draft nationwide ceasefire accord left by the previous talks in a bid to push for its finalization.