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    Southeast Asia
     Dec 15, 2012


Page 1 of 2
China seeks copper firewall in Myanmar
By Peter Lee

The People's Republic of China (PRC) is attempting to establish a modus vivendi with the new political order in Myanmar. With the violent government crackdown on demonstrators at a copper mine-site at Monywa, in northwestern Myanmar, on November 29, things just got considerably more difficult.

Postponement of the China-backed Myitsone dam project was the price tag for the entry of Prime Minister Thein Sein into the good graces of the West. The PRC has, for the time being, not made a fuss but would clearly prefer that Myitsone was the only big-ticket Chinese project that took a bullet for the sake of Myanmar's rebalanced foreign policy.

The PRC is hoping to shield its projects - such as the copper

 
mine and a twin-pipeline project crossing from the Bay of Bengal to China's Yunnan province - through belated hearts and minds outreach to the public in Myanmar (also known as Burma), and serious jawboning and arm-twisting in the halls of government. The current government leadership in Myanmar and, to a certain extent, Aung San Suu Kyi, seem on board, at least for the time being. However, widespread resentment of government oppression and Chinese economic exploitation is driving Myanmar's politics, possibly further and faster than the national elite prefers.

The PRC has to worry that the Myanmarese democracy-and-national-reconciliation express, now chugging determinedly to 2015 elections for a parliament that is supposed to be 65% free-and-fair elected and 35% appointed military officers, will not hop the tracks to administer revolutionary justice to Myanmar's generals for widespread human rights violations and corruptly selling out Myanmar's wealth to the Chinese, putting paid to China's economic interests in the process.

Under these circumstances, the last thing Beijing needed was for Myanmar's present government to be seen brutalizing monks and students in order to protect the interests of the Myanmarese and Chinese military in a polluting copper mine.

China's participation in the mine is relatively recent, dating back only to 2010 However, the mine has been in the crosshairs of domestic and overseas Myanmar democracy activists for years. The original investment in the mine came from a Canadian mine developer, Ivanhoe, which was targeted for its alleged willingness to ignore international sanctions and serve as an economic prop of the military junta.

Even Ivanhoe's efforts to divest itself of the mine came in for criticism as it kicked its interest back to Myanmar's government to sell (instead of selling it to the PRC directly), thereby apparently giving the generals a second chance to secure graft on the deal.

The fact that the mine is a joint venture of the commercial arm of Myanmar's military - the Union of Myanmar Economic Holdings Ltd (UMEHL) - and Wanbao Mining Ltd, a subsidiary of China's main arms manufacturer, NORINCO - added to the shadow over the project.

Copper mines, which generate sulfuric acid in order to reduce the ore to metal, are not the cleanest, most environmentally friendly industrial facilities at the best of times and it is safe to assume that Monywa is not the best, cleanest, or most environmentally friendly of copper mines. Pollution from the mine has been blamed for infertile cropland, tainted groundwater, and birth defects.

Therefore, it is not too surprising that, when the operators started expanding mining operations to a new site, Letpadaung, local and national activists converged in September to set up camps at the gates of the project and demand its closure. Members of the Generation 88 student activist group inserted themselves as mediator/advocates and the demonstrations grew and achieved national prominence.

The international NGO community also piled on, playing up the environmental destruction angle:
The Chindwin River is a major tributary of the Irrawaddy River and runs by misty-blue mountains and charming villages while passing through a region of abundant natural resources and fertile meadows.

"The river runs through intact forests in both the Tamanthi Wildlife Sanctuary and the Hugawng Valley Tiger Reserve, the largest tiger reserve in the world. It sustains vital habitats for a wide array of wildlife, including globally endangered species, tigers, elephants and the endemic Burmese Roof Turtle," says the Burma Rivers Network NGO. [1]
Though willing to pay lip service to addressing local and activist concerns, the government was apparently not of a mind to let the mine serve as another area of Sino-Myanmar friction and decided to clear out the several hundred protesters on the grounds that their encampments illegal and unapproved.

Instead of efficiently evicting some rabble-rousing monks and strident students and wiping the slate clean for a fresh reconsideration of the project and the fortunes of the Burmese Roof Turtle by the new, more pro-Western, pro-business political grouping, fiasco ensued.

It has not yet been determined what happened on November 29, but something incendiary somehow got involved - perhaps flares, hot tear-gas projectiles, or some unknown weapon - and several dozen people suffered serious burns as the encampments were cleared out. The national news was dominated by pictures of burned monks and Monywa is now associated with fresh crimes by the regime instead of a new, more democratic order.

The Assistance Association for Political Prisoners (Burma) raised the specter of use of incendiary weapons against civilians - a violation of the Geneva Convention. [2]

Myanmar's Eleven Media, an anti-Chinese rabble-rouser that had previously attracted the PRC's ire for false and incendiary claims that pagodas and temples were being demolished during construction at Letpadaung, went with assertions that "chemical weapons" had been deployed during clearance of the camps. [3]

There was also an effort to frame the crackdown as an anti-Buddhist sacrilege - a virtual political death sentence in Myanmar - because the camps were cleared on the night of the eighth full moon, "sacred day of offering woven kahtina robes to the Lord Buddha." [4]

Government efforts to make things right by apologizing to the burned monks were rebuffed, as an article in Irrawaddy, "Monks Suffer in Dignity But Shall Not Forgive", reveals:
On Saturday, the Sagaing Division Police Chief San Yu apologized for the raid and claimed that it was an accident, generating nationwide anger.

"We don't accept their apologies," said Wunna Theddhi faintly yet firmly from his hospital bed. "We demand that Thein Sein apologizes to us personally and completely shuts down the project. If they do so, we are happy to forgive them."

"We don't accept their offerings either," said Thusiddha. "For they are trying to appease us for what they have done," referring to some packs of soft drinks sent by the local authorities that lie untouched in the hospital corridor. [5]
Monks refusing alms is the ultimate weapon against unworthy civilians in Theravada Buddhism.

Follow-on demonstrations against the project, and against the Chinese presence in Myanmar, led to further arrests in Yangon, Mandalay, and other locations. A former ambassador of Myanmar to China warned that events could spiral out of control and lead to a crisis in Sino-Myanmarese relations. [6]

Aung San Suu Kyi's visit to Monywa appears to have been originally scheduled as part of the work of a commission to investigate the environmental costs and economic aspects of the project in response to the demonstrations, presumably in order to tweak the project and get buy-in from activists rather than cancel it.

However, the flame-licked debacle of November 29 turned everything upside down. Instead of fact-finding, Aung San Suu Kyi's first stop was at the hospital to commiserate with injured protesters. The commission's mandate and numbers were announced and then readjusted and reannounced in an awkward, public matter to include investigation of the botched eviction.

Notably, despite the fact that pro-democracy activists of Generation 88 (who had been involved in the protests) declined to join the commission, Aung San Suu Kyi still agreed to head it.

The Chinese government announced its expectations for the process in a statement and interviews by the Chinese ambassador to Myanmar, Li Junhua. While determinedly striking a conciliatory note, providing details on the project meant to clarify that it was not an instance of unscrupulous Chinese rapacity, and stating it would cooperate with the investigatory commission, the PRC made it clear that it wanted acknowledgment that its contract with the Myanmar side was legal and enforceable.
"We made a contract with Myanmar after jointly discussing all issues, such as relocation, compensation, environmental protection and profit sharing, through bilateral negotiations that meet Myanmar's laws and regulations. However, these problems happened because people lack access to this information. So, they misunderstand," he said. …

Mr Li said the Chinese investor in the Monywa copper mine project, Wanbao Mining, began partnering with army-run Union of Myanmar Economic Holdings Limited (UMEHL) in 2010. Wanbao is a subsidiary of state-owned arms manufacturer China North Industries Corporation, better known as Norinco.

Under the terms of the 30-year contract for the Letpadaung expansion at Monywa, Wanbao will invest US$1 billion, he said, with the Myanmar government to receive 16.8% of the profits, followed by UMEHL with 13.8pc and Wanbao with 13.3pc.

He said the company had paid more than $5 million in compensation for the more than 6,000 acres confiscated for the expansion - or about $830 an acre - and built more than 200 replacement homes, as well as a school, monastery and hospital. [7]

Continued 1 2  


Rohingya miss boat on development (Nov 10, '12)

A one-sided history (Oct 06, '12)

European firms face Myanmar catch-up (Apr 25, '12)

China-Myanmar: border war dilemma (Dec 2, '11)

China embrace too strong for Naypyidaw (Nov 29, '11)

 

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