Burma Generals Continue to Profit from Hpakant Jade Mining Disaster

Featured Image: Gems mining site in Kachin State 2018, Eleven Media Group

On July 2, 2020, monsoon rains caused a landslide in Hpakant, Kachin State, collapsing a nearby jade mine and killing over 174 people. An estimated 54 people were injured and many more reported missing in what Aljazeera stated was “one of the worst-ever accidents to hit the treacherous industry.” The majority of those killed in the mine collapse were informal workers digging for jade in waste left from a larger mining company. Although it is well-established that Burma, specifically Yangon, holds the world’s most lucrative jade industry, the international community and numerous news outlets forget that it is poor migrant workers that scour billions of dollars worth of jade to make a living in a notoriously dangerous business. 

Following the incident, Aung San Suu Kyi held a Facebook Live broadcast with representatives from the mining company that constructed the site, stating that the injuries and deaths as a result of the mine collapse could have been avoided had there not been a need for workers to illegally sift through the mine waste. By blaming the collapse on joblessness and victim-blaming, Aung San Suu Kyi’s demeaning remarks sparked conservation on the Burmese government’s lax rules on foreign business intervention. It has long been known that foreign companies enter Burma to create destructive mining sites and exploit the country’s jade resources with profits that ultimately benefit the Burma Army. Global Witness noted that in 2014, Burma’s jade industry was worth $31 billion, or half of the country’s GDP, and states that even outside of this peak year, the jade industry is worth between $2-15 billion annually. The Burmese government is not only allowing big jade companies to do business, damage ethnic-Kachin land, and fund the Burma Army, but consistently fails to hold these corporations accountable. The Kachin Development Networking Group stated that the main reason for the deaths during the mine incident is the central government’s “poor governance of natural resources and environmental mismanagement of flaws.”

Although Burma is working with the Extractive Industries Transparency Initiative and Aung San Suu Kyi pledged to “clean up” the jade industry upon election in 2016, these actions have been largely performative and lack tangible change. As stated by U Tin Soe, the Hpakant region’s representative in Parliament, to the New York Times, “If people continue working, there will surely be more landslides and death, but there is no rule of law in this area. That’s why it’s difficult to control.” 

Rule of law is what Burma currently lacks, and is something that could bring major positive change for the future. If the Burmese government implements rule of law for foreign companies to mine under the condition that the surrounding land is preserved, this would prevent the creation of massive pits, similar to the one where nearly 200 people were killed in early July. Additionally, rule of law would mean that companies entering Burma will now be held accountable for any violations of or failure to follow the laws. Burma has a history of allowing large companies to enter the country, infringe on ethnic groups’ rights and land, and leave without having to hold any responsibility for their demolition. 

For instance, in May 2020, locals in Panglaung Township, Shan State, raised concerns about a Tigyit Power Plant that was not prepared to launch under law after failing to conduct an approved environmental impact assessment. Civilians in Panglaung Township stated that the power plant emitted ashes and wastewater that polluted nearby towns and degraded villagers’ health, and had doubts about the legality of the plant’s waste management. Many have accused the government of ignoring these discrepancies and allowing the plant to operate as planned. Another instance of the Burmese government’s lax rules when dealing with foreign contractors is the case of Fortuna Metals Company Ltd., a Singapore-based mining company that was looking to conduct a feasibility test in Kachin State in late May 2020. Local residents and the Minister of Natural Resources and Environment noted that Fortuna Metals had not yet been granted an extraction permit, that the metals mined would cause harm to the surrounding environment, and that the project would more than likely never come to benefit villagers. 

Recent examples such as the Tigyit power plant in Shan State and Fortuna Metals mine in Kachin State show that the deadly mine collapse in Hpakant is the result of the Burmese government’s willingness to curb the rules and allow reckless behavior from large corporations so long as they profit off of it. In 2019, The Directorate of Investment and Company Administration began publishing information on companies in Burma’s extractive sectors in an effort to create more transparency on who owns these companies and benefits the most from them. However, even this system is lacking- of the 162 companies included in the Administration’s first round of disclosures, 24 failed to submit, 17 submitted late, and 11 submitted filings that were incomplete. It is clear that to best regulate Burma’s foreign investors and foreign projects, information on these companies and their dealings must be made public and comply with all implemented rules of law, whether this be to increase accountability, decrease detriment to the environment, or to ensure that funding is not directly benefiting the Burma Army.

Burma’s ethnic groups have suffered from extractive projects and the Burmese government’s nonchalant attitude for far too long and continue to show the world the extent to which the Burma Army and Burmese government’s complicity can affect on-the-ground civilians. The mine collapse and 174 lives lost could have been prevented- villagers shouldn’t have to suffer for the international community to recognize that Burma’s history of curbing the rules for foreign companies needs reform. Global Witness suggests Burma’s constitution be reformed “to ensure that Burma’s jade wealth is developed responsibly and for the benefit of the local population.” As we continue to advocate for peace and justice in Burma, take the time to become educated on the injustices ongoing in the nation and how support for firm rule of law can impact countless lives.  


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