Gold mining near Myitsone expanding under junta crony: report

One of Kachin State’s most powerful businessmen is heavily involved in illegal gold-mining operations near the source of the Ayeyarwady River, according to a new report released this week. Yup Zau Hkawng, a junta crony and owner of the Jadeland Company, has dramatically expanded his role in mining operations in the sensitive Myitsone region, the report by watchdog group Myanmar Resource Watch claims. Myitsone, at the confluence of the N’Mai and Mali rivers some 28 miles north of the state capital Myitkyina, was the site of a controversial Chinese-backed hydropower project that was suspended more than a decade ago over concerns about its environmental impact. The area is also known to be rich in gold, making it a magnet for small-scale prospectors and larger mine operators alike. Among the biggest players is Yup Zau Hkawng, a former peace negotiator between Kachin armed groups and Myanmar’s military who is also the father-in-law of the daughter of Kachin State’s current junta-appointed chief minister, Khet Htein Nan. In 2020, a year before the military seized power in a coup, he had been granted a four-acre concession near the village of Tanghpe in the Myitsone area by Myanmar’s civilian government. Since then, however, he has significantly increased the scale of his operations, according to Myanmar Resource Watch. More importantly, the group says, he has become a kingpin of mining operators who routinely violate restrictions designed to protect Myitsone from permanent damage.“Those who want to dig for gold don’t have to go to the regional military commander or the chief minister. They all go to him,” a member of Myanmar Resource Watch told Myanmar Now, referring to Yup Zau Hkawng. “Everyone goes to the places he assigns them to, and all the authorities related to natural resources also go directly to him,” he added. Heavy equipment is used to dig for gold along the banks of the Ayeyarwady River near Myitsone ( Myanmar Resource Watch) Under Myanmar’s environmental laws, gold mining is not permitted within 200 meters of rivers. However, this rule is now regularly ignored, according to the Myanmar Resource Watch member, who did not want to be identified. Now mining companies from Kachin State, the rest of Myanmar, and China can freely engage in large-scale mining with heavy equipment anywhere Yup Zau Hkawng allows, he said. A resident of the area confirmed that Yup Zau Hkawng’s own company controls the most lucrative mining blocks. “He mines all along the banks of the Ayeyarwady River. If there’s a spot that is likely to yield gold, he’ll go there and mine,” said the local, adding that if anyone refuses to sell their land to him, he’ll start mining there anyway. Some of Yup Zau Hkawng’s mining blocks are just a quarter of a mile from from the confluence—an area that is particularly rich in gold deposits, according to the local. The mines are also an important source of revenue for Myanmar’s junta and the Kachin Independence Army, which both receive monthly payments from miners active in the area. Mine sites are heavily guarded by knife-wielding security personnel, locals say. In addition to mining, Yup Zau Hkawng’s Jadeland Company has acquired 12,000 acres of land for reforestation on Nhkai Bum, a mountain near Myitsone. Myanmar Now attempted to reach Yup Zau Hkawng for comment on his gold-mining operations, but did not receive a response. In February of last year, he told local outlet the Myitkyina News Journal that critics who accused him of wrongdoing were merely trying to tarnish his reputation out of jealousy. According to Myanmar Resource Watch, mining along the Ayeyarwady River has caused its water to turn muddy near its source. An increase in sedimentation has also altered its flow, the group said. The use of mercury and other toxic materials in the mining process is another major concern, as there have been reports of high concentrations of such substances in the water near the confluence. Relevant organizations need to urgently prioritise the preservation of the Myitsone area, the Myanmar Resource Watch member said.

Gold mining near Myitsone expanding under junta crony: report

Kachin businessman Yup Zau Hkawng is accused of acting as the kingpin for illegal mining operations near the source of the Ayeyarwady River

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