Battling for blood jade inside one of the world’s most dangerous industries hannah beech hpakant mar 09-2017

3/11/2017 Myanmar: Battling for Blood Jade | Time.com
http://time.com/4696417/myanmarbloodjadehpakant/ 1/12
W
hen the earth collapsed, as it does nearly every day in the
jade hills of Myanmar, Ye Min Naing was poised on a
steep slope of rubble and scree. It was a rainy night six
months ago, at the tail end of the monsoons. A truck with wheels the
height of a man had just deposited loose stones at the edge of the
Freelance miners scramble down a hill at a mine in Hpakant, in the heart of Myanmar’s jade country, to
scavenge for jade stones. Adam Dean—Panos for TIME
MYANMAR
Battling for Blood Jade: Inside One
of the World’s Most Dangerous
Industries
Hannah Beech / Hpakant
Mar 09, 2017

mountain, sending hundreds of scavengers scrambling through the
tailings in hopes of nding a precious lump of jade.
Ye Min Naing heard the landslide before he saw it, a bass note that
rattled his bones like thunder. Then a friend working near him was
swallowed by a surge of earth. Ye Min Naing was buried too. "Up to
here," the 28-year-old says, making a slashing motion at his neck.
Somehow fellow wildcat miners pulled him out, along with a 19-year-
old who was left paralyzed by the accident. Three people, Ye Min
Naing thinks, were killed, but who really knows? Like many deaths in
the mines of Hpakant township in northern Myanmar (once known as
Burma), this accident never appeared in the media. No bodies were
recovered. Most freelance miners in these hills, which produce nearly
every piece of the world's nest jade, are drug-addicted migrants,
strangers to one another and lost to their families. In the months
since the landslide, the mass of stony waste at Hmaw Sisar, where Ye
Min Naing still forages, has only grown more perilous. "We don't
know who is buried in there," he says.
Man and rock exist in inverse value in the Himalayan foothills of
Myanmar's Kachin state, wedged between India and China. The rock
— a translucent mass of sodium aluminum silicate known as jadeite
— is one of the world's most coveted gems, chie y among the
Chinese, whose growing buying power has spurred record sales. The
roughly 300,000 jade pickers who sift through the detritus left by
larger mining operations are migrants whose lives are threatened by
landslides, drug addiction and disease. Tying the precious stone to

dispensable miners is a web of Burmese military-linked rms,
Chinese companies, ethnic rebel commanders and drug kingpins
wanted by the U.S. government. The stone of heaven, as it is known in
China, is also fueling civil war between the Burmese military and
ethnic Kachin guerrillas seeking self-rule. Jade comes in many hues,
from the shade of a king sher's throat to what the Chinese describe
as "moss entangled with melting snow." But for the people of
Myanmar, it is stained, most of all, by blood.
Few countries' economies are so bound to one resource. Global
Witness, an international watchdog that monitors natural-resource
exploitation, estimates that Myanmar's jade trade was worth up to
$31 billion in 2014, nearly half the nation's GDP that year. Yet the
industry remains shrouded. The ethnic Kachin, though native to the
jade hills, control few of the mines. In the 1990s, the Kachin
Independence Army (KIA), one of several ethnic armed groups
ghting the state in Myanmar's borderlands, lost control of territory
around Hpakant.
Today most of the big concessions belong to companies or cronies
connected to the Burmese military elite. Even as the country has
transitioned from ve decades of military rule to semicivilian
authority, jade has proved the limits of democratic governance. Most
stones are smuggled over the border to neighboring China; only a
fraction are subject to the tax needed to ll government coffers in one
of Asia's poorest countries. The scale of graft and unaccountability is
such that Global Witness calls Myanmar's jade economy the "biggest
natural-resource heist in modern history."

While con ict diamonds have yielded Hollywood scripts and rap
lyrics, jade has largely escaped international scrutiny. Last October,
then U.S. President Barack Obama lifted sanctions on the importation
of Burmese jade and rubies, which had been put in place because of
the gem trade's abysmal reputation. The repeal was a reward for
political reforms that had brought democracy activist Aung San Suu
Kyi's National League for Democracy (NLD) party to power in 2016.
Many civil-society and watchdog groups, however, were aghast,
arguing that the jade industry is still rife with abuses. Though the
Burmese government has signed on to a global transparency initiative
for extractive industries, the reality in Kachin remains bleak. In fact,
fear that Suu Kyi's administration may soon enforce safety standards
and anticorruption regulations has only intensi ed the race to
unearth Hpakant's green treasure. "They are digging so fast that jade
will be gone in 20 years," says one small-concession holder. "Maybe
even in 10 years."
The world's best jade mines are sealed off to nearly all foreigners. But
I managed to access Hpakant to experience a place so beguiling to
18th century Chinese imperial envoys that hundreds perished en
route in the malarial wilderness. The scenes before me look like a
cross between a magni ed ant farm and a Star Wars set. In the
distance I spy what appear to be hundreds of tiny insects clinging to a
hillside. As we drive closer, I realize they are men. Backhoes,
excavators and giant trucks maneuver through a lunar landscape like
creatures from an alien planet. Hpakant was once the domain of

tigers and verdant foliage. All I see is dust and brown. Where
prospectors used to dig by hand, now explosives and heavy
machinery, mostly imported U.S. or Chinese brands, are ripping the
entrails out of jungle, demolishing entire mountains within months.
Already, Hpakant is mostly dead.
Fatal accidents mount. Only the biggest, like a November 2015
landslide that killed about 200 miners, make headlines. Township
of cials have recorded hundreds of deaths in jade-mining accidents
over the past year and a half. But locals say the real number is many
times that. And in the hills, the Burmese army and Kachin rebels
continue to wage war. "If there was no jade, there would be no war in
Kachin state," says Yup Zaw Hkawng, an ethnic Kachin who owned
large mining concessions before the Burmese military wrested control
of Hpakant. "We are living and sleeping on so much jade in our earth,
but jade is Kachin's curse."
Read More: See the True Cost of Burmese Jade
It is night at Hpakant's Kyauk Sein Nandaw mine, and I cannot see
anything in front of me but the beams of dump trucks barreling
toward us. The oversize vehicles move in erratic lines to the edge of a
cliff where they will disgorge stones considered too tri ing for the big
mines to bother sifting through. Shadows of men shift with the
trucks' trajectory. Behind us, the hillsides are covered in pinpricks of
light, each the ashlight of a freelance miner striking bits of rock with
an iron pick, hoping to hear the distinctive ping that denotes a chunk
of jadeite.

Suddenly, a shout goes out. A cacophony of voices magni es the
panic. Miners storm up over the brink of the precipice, rocky debris
clattering down the quarry. In the spotlight of my headlamp, I catch
isolated images of terror: the whites of widened eyes, grasping limbs
and swirls of dust from the tread of frightened feet. The alarm turns
out to be false. But less than a month before, at least three people
were killed by a landslide at this very mine. A video, recorded on a
miner's cell phone, shows a 400-ft.-long avalanche of earth rolling
over human gures.
For years, no Western journalist had reached Hpakant. (Burmese
reporters have led compelling stories.) Frequent checkpoints enforce
a ban on foreigners — save Chinese buyers — as do military
intelligence, special branch, immigration and other agencies of what,
despite Myanmar's gradual shift from army to civilian rule, remains a
police state. As photographer Adam Dean and I make our way back
from Kyauk Sein Nandaw mine that night, the inevitable happens.
Two trucks lled with soldiers, plus about a dozen security forces, are
waiting for us.
During our detention, we are treated with courtesy. We notice that
local of cials are pro ting from jade: one has raw stones rolling
around in the trunk of his car. A calendar in the Hpakant immigration
of ce features images of jade mines. After we are released, we are
followed on our entire 16-hour road trip out of Hpakant: at every
checkpoint and tollbooth, every transition from one township to
another, even in parts of Myanmar that are not restricted for

foreigners, someone tails us or photographs us. The effort involves
hundreds of monitors.
Many of Myanmar's ministries may now be run by opposition leaders
and former democracy activists. But the army that kept the country
cowering for so long still exercises great power, especially in jade
country. "If you keep the jade business in a black box and don't let any
information get out, it's hard [for outsiders] to put pressure on the
people that control the industry," says Juman Kubba, a senior
campaigner at Global Witness who has spent years tracking the
Burmese jade trade. Last year she was blocked from reaching
Hpakant, even though she had permission to visit from the Myanmar
Ministry of Natural Resources. In January, while on an in-country
tour, Yanghee Lee, the U.N.'s human-rights envoy for Myanmar, also
complained that she was prevented from going to Hpakant.
In jade country, I get a glimpse of what the industry wants to hide.
Last July, the NLD government announced a moratorium on new
mining licenses and a freeze on the renewals of existing ones. More
than 2,000 mines were ordered to suspend operations while
environmental-impact surveys were carried out. Yet miners and
small-concession holders in Hpakant allege that some of the biggest
— and best-connected — mines are still operating, even when they
lack proper certi cation. "The NLD government has no power," says
Lamai Gum Ja, a Kachin community activist. "It's like we have no
government at all, so the military does what it likes." At every mine I
visit, I can see that safety rules--such as efforts to license wildcat
miners and limit the height and gradient of slag heaps in order to

prevent fatal landslides — are being outed. "Before, this area was so
beautiful," says another small-mine owner in Hpakant. "Now it's
turning into hell."
Sequestered from the outside world, Hpakant radiates a gold-rush
lawlessness. Unexplained killings occur with regularity. While we are
there, a schoolteacher is shot in the head. The day before, a jade
trader died from an executioner's bullet. Last year bombs exploded at
the headquarters of two mining companies. In November, a jade
scavenger at Hmaw Sisar mine was shot dead by military intelligence
or the KIA, depending on who's telling the story. "There is no real law
in Hpakant," says one of the immigration of cers holding us, with a
touch of apology. "We don't know who to trust."
The Wild West atmospherics are heightened by the ongoing ghting
between the Tatmadaw, as the Burmese military is known, and the
KIA. The largely Christian Kachin have long chafed at rule by the
Buddhist Bamar ethnic majority. It is a point of pride among these
frontier people that while some Bamar initially collaborated with the
Japanese during World War II, the Kachin fought on the Allied side,
stringing on necklaces the ears of slain Japanese. In 2011, a 17-year
cease- re with the Burmese government, which is facing renewed
ghting in various ethnic strongholds, collapsed. Skirmishes are
near Hpakant; more than 100,000 Kachin have been forced to ee
their homes. So thick is the jungle near the jade mines that the KIA
uses elephants to resupply its forward bases. The land is stippled with
land mines. One day, near Nant Yan village, we see a column of young
Tatmadaw recruits, oversize helmets askew on their heads, creeping

toward enemy territory. In February, the KIA claimed that the
Burmese military had launched an offensive near Hpakant, even as
Suu Kyi was pushing ethnic armed groups to sign a national cease- re
agreement.
Both sides in the con ict are using jade to ll their war chests. Jade
scavengers, most of whom are not ethnic Kachin, complain that since
the ghting intensi ed, the KIA has raised the levy it makes them pay
for selling stones to middlemen. "The KIA say it's their land, so we
have to give them money," says Aung Thar Tun, a jade picker at Kayin
Gyaung mine who lives under a sheet of tarpaulin with his 15-year-
old nephew, another scavenger. "If we don't pay and their informers
nd out, they will shoot us."
High-level KIA of cials acknowledged to me that taxes on jade are
the armed group's primary source of funds. But it is the Tatmadaw
and its cronies that are reaping far greater rewards from Kachin's
jeweled heritage. A 2015 Global Witness report compiling evidence of
the companies that control many of the major jade mines in Hpakant
reads like a Who's Who of the military elite and its families, including
former junta leader Than Shwe and ex-northern command chief Ohn
Myint. Conglomerates linked to the army, with generic names like the
Union of Myanmar Economic Holdings and Myanmar Economic
Corp., hold jade concessions. Both companies were subject to U.S.
sanctions until last fall. A rising player in Hpakant, locals say, is Wei
Hsueh-kang, a commander of the United Wa State Army, Myanmar's
biggest ethnic armed group. The U.S. State Department is offering up
to $2 million as a reward for his arrest because it considers the Wa

"the dominant heroin traf cking group in Southeast Asia, and
possibly worldwide."
For all their power, local companies, whether Bamar or ethnic, are
often proxies for Chinese rms that cannot legally own mines, say
industry researchers and Hpakant concession holders. So deep is the
China connection that the Mandarin word for boss, laoban, has
entered the Hpakant vocabulary. "Of all the hairs on the head of the
jade industry," says one small-mine owner, "only one strand is
Burmese. The rest are all Chinese." There is a growing sense of
frustration in Myanmar that China may be stealing its patrimony. In
recent years, demonstrations have erupted over a Chinese-controlled
dam project and copper mine. But because the jade business is so
opaque, it's hard for Burmese to know what to protest against.
"Everyone knows the Chinese control almost all the jade mines," says
Lamai Gum Ja, the Kachin activist who is also involved in the trade.
"We know this, but we can't do anything about it."
In Hpakant's Lone Khin village, Chinese buyers ock to the largest
open-air jade market in the world. Beijing's anticorruption campaign
has led to a drop in jade prices, as conspicuous consumption takes on
political risk, but there are still plenty of speculators. Scavengers
sidle up, dirty palms clutching dirty rocks. Every sale is a gamble.
Chunks of jadeite — as opposed to the more common nephrite, which
is considered an inferior jade — resemble mud-colored eggs. Buyers
try their best to divine what's within, carefully tapping a stone or
holding a ashlight to the shell to check what colors glow beneath.
None of these transactions will be recorded by any government.

If a buyer is unlucky, a fault line will mar the clarity. But the value of
the nest jade can rival that of diamonds. In 2014, a necklace of 27
beads, once owned by Woolworth heiress Barbara Hutton, sold at
auction for $27 million, more than double the estimate. In a catalog
note, Sotheby's enthused that the beads were "round and succulent in
shape and color, like mouth-watering grapes under warm sunlight,
glowing through their thin skins, exuberant and mellow, elating the
spirit of whoever set eyes on them."
Such passion for jade helps explains why in less than a decade the
number of wildcat miners in Hpakant has roughly doubled, as more
mountains are reduced to rubble ready for prospecting. Drug use and
disease, too, have soared. Hpakant residents estimate that heroin
addiction af icts 75% to 90% of the jade-pickers. And the needles are
almost always shared. Thein Than Myo worked at Hmaw Sisar mine
for 12 years. Even after he discovered he was HIV-positive, he kept on
using, scavenging needles from the ground of shooting galleries. One
Kachin NGO says that up to half of all Hpakant miners will eventually
contract the virus.
In December, Thein Than Myo checked into a Catholic HIV shelter in
the Kachin state capital, Myitkyina. A few weeks into his
antiretroviral regimen, he feels better and vows to return to Hpakant.
When I tell him I met a miner at Hmaw Sisar who had been buried up
to his neck a few months before, he shrugs. "I saw people die in front
of me," he says. "People always die in the mines." But that does not
stop him from dreaming. There is always a tale of a friend of a friend

— With reporting by Saw Nang/Hpakant
who made impossible riches from Kachin's jade hills. "I will go one
last time," Thein Than Myo says. "I can still make my fortune."

15Tuesday, March 14, 2017 ARTICLE
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