Local price hikes force Jade and rare earth mining businesses in Kachin State to illegally import Chinese fuel

Local price hikes force Jade and rare earth mining businesses in Kachin State to illegally import Chinese fuel
A jade mining block in Hpakant
A jade mining block in Hpakant
Published 23 August 2022

As local fuel oil prices soar in Myanmar, fuels are being illegally imported from China for mining jade and rare earth minerals in Kachin State, witnesses say.

A local witness said since the local fuel prices have skyrocketed for the over past two months, fuels from China have been illegally brought in through an illegal route in Kanpaikti with a least about 10 truckloads at a time. 

“Such cargoes pass through the tax collecting checkpoint in China. But when they arrive in Myanmar, they will not pass through the checkpoint and reach here via an illegal route besides the hills. Smugglers have very connections,” the witness said.  

Another witness said Chinese fuels in tanks were brought in by car and then put into barrels on the way to Hpakant in Kachin State.

“Money is collected in several places for the use of roads. Collectors are the border guard force and sometimes the KIA (Kachin Independence Army). Again, toll fee is Ks200,000 per truck and Ks100,000 per smaller vehicle. But fees are different at different times. Fuel prices in China are about half cheaper than here,” he said.

Currently, the local fuel price is above Ks800,000 for 50 gallons in Kachin State, but stocks are reportedly running out.

Locals in Hpakant said jade mining is still rampant and many of the mines are running illegally.

Since the political change, the northern part of Myanmar has seen more illegal mining of rare earth minerals.

Satellite images taken in March this year showed over 2,700 mineral blocks running, according to a report issued by Global Witness on August 9. The report said Myanmar exported minerals worth US$200 million to China in December 2021.

In the 15-mile radius of mining are over 20 villages. As creek water there is dangerously contaminated, indigenous people and animals are suffering severe shortages of water.

The creeks in which minerals are being mined are flowing into the Maykha River and then into the mighty River Ayeyaway.