Unfairly accused
A Myanmar villager pans water for copper at a mine dump near the Sabal hill copper mine project in Monywa in northern Sagaing division on September 14, 2012.
Things have not been easy for Wanbao Mining Ltd., a Chinese State-owned company, in recent months, with local protests constantly disrupting its copper mine project in Myanmar. The focus of controversy is the Latbadaung Mountain copper mine project in Monywa in northern Sagaing division, jointly developed by Wanbao and its Myanmar partner, the Union of Myanmar Economic Holdings Ltd.
A senior official surnamed Chen from Wanbao told the Global Times that the two sides signed the development contract for the Latbadaung project in June 2010, which was approved by the Myanmar government. Wanbao began construction work for the project in March 2012. The copper mine, scheduled to go into operation in June next year, is unlikely to be finished on time because of the protests.
Unfair compensation?
An expansion program of the Monywa mine, the Latbadaung project required the relocation of four villages with 442 households and land compensation for residents. The locals have staged protests since construction began.
"The protesters believe they were not given enough compensation. The effect of the projects can threaten the health of villagers and they are afraid some pagodas and religious buildings in the project areas will be lost," Soe Sandar Oo, a reporter with the Yangon-based Myanmar Times who has reported on the protests, told the Global Times.
However, Chen told the Global Times that they have tried to give maximum benefits to the villagers. Currently, the company has paid $ 5.7 million in compensation for the crops on the land that was used for the project, and it will pay $ 3,400 in rent a year to the government for each square kilometer of land. There are over 1,700 acres of land privately developed by the villagers who are not officially registered, but Wanbao also compensated them equally.
So far, 218 of the 442 households have agreed to move to the new villages built for them and accepted their compensation, according to Chen. For those new villagers, temples and pagodas received special attention to satisfy their demands.
Chinese companies bear brunt
Tensions escalated in June, with hundreds of villagers besieging the operation site and some shouting anti-Chinese slogans.
Michael Kugelman, South and Southeast Asia associate at the Woodrow Wilson International Center for Scholars based in Washington DC, told the Global Times that he didn't think these protests were deliberately targeting Chinese investment. "The protests are likely a result of the political liberalization happening lately in Myanmar. People have more freedom and space to protest than they did previously."
However, Chen said the demonstrators are not like simple villagers. "Some wore badges of political organizations. There were obviously some NGOs and democratic groups making use of the locals for public attention and political gains."
Han Win Aung, an activist helping in the protests, told the AFP, "The main thing they want is an end to the Latbadaung Mountain copper mine project." The Myitsone dam project, with investment from China, has been suspended due to overwhelming public pressure.
Overlooked long-term benefits
Chen feels wronged. He said the project could be a win-win situation.
The Latbadaung project will generate 100,000 tons of cathode copper per year. After the project goes into operation, between 1,000 and 1,500 job opportunities will be provided. According to Chen, the company will give priority to those villagers whose land was used for the project. Even during the construction period, the company hired over 200 locals on a salary of $ 3.50 per day, much higher than the local standard of $ 2.30 per day. The company has engaged in projects aimed at improving people's livelihoods, such as building hospitals, roads and dams.
However, those long-term economic interests are easily overlooked by the locals. Bi Shihong, associate professor of the Institute of International Studies at Yunnan University, told the Global Times that some Myanmar people are in a frenzy as the country moves toward democracy, but in the long run, they should be rational and reflect more on the issue of economic development.
Protecting investment interests in Myanmar has become an issue for Chinese businesses. Marie Lall, an expert with the Yangon-based Myanmar Egress, a nonprofit organization founded by Myanmar scholars and social workers, told the Global Times that China is the country with by far the largest investment in Myanmar. But "China is seen to have been on the side of the regime."
A Chinese reporter based in Yangon for many years told the Global Times that some Chinese enterprises have felt pressure from these negative attitudes toward them. However, Chinese enterprises have actively participated in Myanmar's economic construction. The Myanmar public hasn't gained comprehensive information on the contributions of the Chinese enterprises.
Bi said that Chinese enterprises in the future should have more contact with the local community as well as pay attention to the authorities. Meanwhile, the Myanmar government should create a safe and steady investment environment for foreign investors and protect their interests by improving the legal system.
source: global times
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