Wanbao to proceed with mining as workers are freed

WEDNESDAY, MAY 21, 2014
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China's Wanbao insisted that the copper mine project in Letpaduang would continue as planned, despite the recent commotion involving the kidnapping of two Chinese workers on Sunday.

 
In his meeting with local journalists on Monday after the two workers were released, Geng Yi, the managing director of Myanmar Wanbao Mining Copper Ltd, said that it was not possible to stop the project now. 
The project was given the go-ahead by the government and compensation for the land has already been increased, he added.
The two workers were released on Monday evening, following a negotiation with activists who demand a halt to the controversial project.
Local authorities have taken action against Thein Aung, San Maung, Khin Nyein, Win Htwe, Ye Win, Phyu Hnin Htwe in connection with the fighting on the night of May 18. Residents have requested that the police drop charges after releasing the Chinese workers.
When regional authorities attempted to secure the release of the hostages on Sunday, they were attacked with stones, catapults and burning logs by angry residents from Sete, Moegyopyin and Tonpyin villages. The Sagaing Regional Government Committee released a statement through the state-owned media saying they were forced to retreat and unable to negotiate the safe release of the hostages. 
Although the police tried to disperse the villagers by firing rubber bullets, their efforts were in vain. Two policemen were injured during the attack and are receiving medical treatment in hospital. Twelve police motorcycles and five vehicles were also destroyed, according to the statement. 
"The villagers don't like the presence of the police in the village but the police still came to the village to rescue two Chinese workers. The Kyauk Phyu Tine villagers can't stand the police after they seized the Zetaw Monastery and the conflict started. The police fired the guns to break up the villagers with tear gas," said residents of Kyauk Phyu Tine village.
 “We are very happy that our two men have been released,” said Wanbao official Cao Densheng on Monday evening, after activists and local people had called for a total end to work and threatened to harm the workers.
“But we did not agree to any of their demands,” he added.
The mine has triggered fierce opposition from local villagers due to alleged land grabs and environmental damage, and has raised questions about Myanmar’s reliance on investment from neighbouring China - which gave crucial political support to the former junta.
Wanbao, which runs the project as part of a joint venture with a Myanmar military-backed firm, said earlier the men were surveying a part of the mine Sunday when they were set upon by activists and two local monks, who later issued a death threat.
A 21-year-old Myanmar national was also abducted Sunday but released the same day.
The copper mine has been the subject of several protests by campaigners and local villagers, mainly over land rights and compensation.
 
Call for halt 
Wanbao said the demands escalated during Sunday, with the kidnappers finally calling for the entire mine project to be halted and threatening to kill the captives if people from the village were injured by police attempting to free the men.
“Wanbao cares greatly for the people of Myanmar and we very much hope that this issue can be resolved peacefully as soon as possible so that our colleagues can return to their families,” the firm said, adding that opposition to the mine came from “a small number of extremists and activists”.
The incident comes as China sent five ships to help evacuate its nationals from Vietnam after territorial tensions between the neighbours spilled into deadly rioting last week.
President Thein Sein in 2011 ordered the suspension of work on a hugely unpopular Chinese-backed mega-dam.
In July 2013 the country revised the terms of the mine deal with Wanbao, in an apparent attempt to allay public anger over the scheme by giving the nation a share of the profits.
Myanmar's government appointed a probe panel, led by opposition leader and parliamentarian Aung San Suu Kyi to investigate into the project and the final report of the panel to the president was released on March 12, 2013 proposing that the project should go on as the best choice for the economic benefit of the nation and the people, especially for the benefit of the future generation.
Subsequently, a committee for the implementation of the probe panel's report, headed by Myanmar President's Office Minister U Hla Tun was formed.
In accordance with the guideline of the committee, Chinese and Myanmar companies concerned have done a lot of undertakings, including compensation for confiscated land, Corporate Social Responsibility (CSR) for local people and amendment of the contract.
Fact Box
- Latpadaungtaung copper mine project is located in Monywa in northwest Myanmar's Sagaing region
- It is undertaken by the Myanmar Economic Holding and the Wanbao Mining under the approval of the Ministry of Mines in March 2010.
- Suspended in 2011, the project was interrupted for months since November 2012 by intermittent protest against its implementation, causing great losses to all sides.
- The construction work is to resume under a revised contract signed on July 24 last year by the state-owned Myanmar Mining Enterprise, Myanmar Economic Holding and Wanbao.