Letpadaung project to commence despite conflicts

In a statement, the company, which is a subsidiary of China’s Wanbao, said that it will extend the working area in the Letpadaung copper mine to comply with requirements of its investment permit granted by the Myanmar Investment Commission. The statement was released on December 22, the same day when a clash occurred and left one woman dead. 

The project has been delayed for two years due to environmental concerns and disputes over land compensation.

“Construction is proceeding as a result of broad community support for the project,” the company insisted.

The company hopes that by beginning operations, it can share the benefits of the project with the surrounding community and the whole of Myanmar. 

 

Local villagers have complained about pollution created by the project, which is located in Salingyi Township, Sagaing Region.

 

A report released earlier this year by Australian consultancy firm Knight Piesold Consulting said acid and metal generation arising from waste rock pose extremely high environmental risks to surface and groundwater. 

 

A total of 92,500 tonnes of ore will be mined and placed onto the leach pads on a daily basis. This is expected to produce 100,000 tonnes of copper per annum. 

 

“Failure to heed these requirements, from commencement of construction through operations and closure of the facilities, will leave a residual risk and legacy beyond closure of the operation,” the report said.

 

In a statement, MWMCL estimated that once the mine is operational, it will generate an annual US$140 million in taxes, royalties, and production share, and an additional $150 million per year in local procurement. Two per cent of the project’s net profit will go towards community development, the statement said. 

 

The company's latest statement also said the environmental and social impact assessment (ESIA), formulated by Knight Piesold, is in its final approval stage and being overseen by the Ministry of Environmental Conservation and Forestry (MOECAF) of Myanmar. It also stressed that the report was produced using International Finance Corporation’s (IFC) standards to predict environmental, social and health outcomes from the mine's operations. 

 

The ESIA concludes that “the development of the Letpadaung Copper Project will have a limited and acceptable impact on the environment when compared to the benefit that the community and the nation may derive from the project, provided the management measures described in the ESIA document are implemented."

 

“At Wanbao, we believe that we have been working very hard at addressing the community concerns with our contribution payments, our employment policies, our SME development programmes and our CSR investment. And we will continue maximising the developmental returns from this project in consultation with all stakeholders for our community,” the company stated.

 

Contradicting some villagers’ complaints that they were not yet paid for land confiscated for the project, the company said it paid out subsidies three times. Farmers were given between Ks 1.812 million and Ks 3.25 million per acre, according to MWMCL.