Myanmar: Letpadaung Copper Mine project sparks ongoing protests, land disputes & security concerns
Summary
The Letpadaung Copper Mine, located in Myanmar's mineral-rich Sagaing region, has been a source of ongoing controversy since its inception. Originally a project conceived as a joint venture between Ivanhoe, a Canadian mining company, and the Myanmar government in 1996, it was bought by Wanbao Mining Ltd., a subsidiary of Chinese state-owned Norinco. Wanbao proceeded in 2010 to sign an agreement regarding the mine with the Myanmar government. The project has faced numerous challenges, including local protests, construction delays, and environmental concerns.
Initially agreed upon in 2010, the mine began production in 2016 after significant setbacks. While promising economic benefits, including government revenue and job creation, the project has been marred by land disputes, allegations of forced evictions, and violent clashes between protesters and security forces. In total, the mine has required the acquisition of 6,785 acres of land from 30 villages, including the total relocation of four. Following Myanmar's 2021 military coup, the mine's operations have been further disrupted by worker strikes, armed clashes, and broader political instability.
Location: Salingyi Township, Sagaing Region, Myanmar
Companies: Joint Venture of Wanbao Mining Ltd, Union of Myanmar Economic Holdings Limited, and Mining Enterprise 1. The former is a wholly owned subsidiary of Norinco, a Chinese state-owned defence conglomerate. The latter two are Myanmar state-owned companies. Following the renegotiation of a production sharing contract between MWMCL, the Myanmar government and Myanmar Economic Holdings Ltd (MEHL) in 2013, ME1 received 51% of the mine's shares; Wanbao Mining received 30%; and MEHL received 19%.
Investors and Financiers: The total cost of the project is reportedly over 1 billion USD. The financing of the project is at least partially supported by the China Export Import Bank, according to AidData.
Project Impacts and Concerns
Environment: In May and June 2012, local farmers complained that bulldozers from the mine destroyed cultivated farmlands and dumped large amounts of contaminated soil near the local villages. In late 2015 several farmers in Wet Hme village saw that liquid from the drain in the perimeter of the mining site ran into their farmland, killing the crops. In 2017, there were allegations that the MEHL-run Moe Gyo sulphuric acid factory that supplied nearby Letpadaung Copper Mine and S&K Mines was causing health problems to local communities.
Eviction and Intimidation: According to a 2015 Amnesty International report, thousands of villagers had been evicted. This process continued in the following years, with 119 villagers evicted in an operation involving around 300 Myanmar army soldiers. When villagers tried to negotiate with Wanbao representatives, the latter refused unless they signed an agreement to relocate even before talks began. The amount offered was allegedly the same amount paid out in 2010, despite rising costs in the interim.
Due to incomplete land titling and weak legal protection, in the land expropriation and compensation process several disputes arose among family members and neighbours, negatively impacting the interpersonal relations in local villages.
Violence: Protests of the project have been met with excessive violence throughout the lifetime of the project. In November 2012, a protest which included villagers and monks was met by the use of white phosphorous, a toxic substance banned by many countries, against them. Over 110 protestors were wounded, some permanently. Protests continued in the following years.
In 2014, a woman was shot dead during a protest. In both the 2012 and 2014 cases, any attempts through formal means for compensation or accountability have been ignored or suppressed. There have otherwise been continued instances of protests met with force and resulting in injuries and the arrests and jailing of activists. After the 2021 coup, protests have intensified, and there have even been repeated clashes between regime and rebel troops in the area of the mine.
Full Project Profile by The People’s Map of Global China
This page provides a comprehensive overview of the Letpadaung Copper Mine project, including its background, key stakeholders, potential impacts on local communities and the environment, and concerns and opposition raised by various civil society groups.