One year into its term, Myanmar’s civilian-led government faces a stiff challenge. Can it deliver the peace it promised to make its top priority when it swept to power on a wave of opposition to military rule?

The ethnic armed conflicts which have ravaged the country’s borderlands since independence are at their root a struggle over rights and representation. It is no coincidence, however, that the most serious fighting is in the north – which is also home to the world’s most lucrative jade mines. Military elites face losing their grip on the multi-billion dollar industry, and resist prospects for peace and reform that threaten those interests. 

As the country heads towards new peace talks, it is time to tackle the role natural resources play in incentivising and fuelling armed conflict. Attention must be paid to who is given access to valuable deposits, how extraction is managed and monitored, and how benefits are shared. A fair, transparent and accountable approach is crucial to achieving the lasting peace the people deserve. 

Kachin and northern Shan States are home to the most serious of Myanmar's armed conflicts. The UN estimates that around 100,000 people have been displaced since fighting began in 2011, some more than once. Now, their camps and host communities are under threat from new attacks as military offensives scale up.

Over the last year, the conflict has intensified. According to January figures, over 10,000 have been driven from their homes in the last round of fighting Increased restrictions on humanitarian aid to non-state controlled areas have worsened the suffering. Local people are increasingly desperately calling for peace.

Myanmar's jade billions could be supporting much-needed development. Instead, the mines are being ransacked by some of the most notorious names from the junta era. 

During a 17 year ceasefire which ended in 2011, valuable deposits were carved up and handed out to powerful companies by the military government. Local communities who had worked the mines for centuries were squeezed out. The new arrivals brought in heavy equipment and machines to empty Kachin State of its jade.

Global Witness investigations have revealed a string of military players in the jade business. They include the families of former dictator Than Shwe and former commander of northern Myanmar Ohn Myint, as well as notorious army companies such as Myanmar Economic Holdings.

A fair peace deal could see these powerful networks lose their control of lucrative jade mines. They have the means and, with the army’s continued influence, potentially the ability to keep the fighting going until they have seen off any threat to their interests. 

As documented by Global Witness, on the ground, the Tatmadaw (army) units in Kachin State reap huge sums through extortion rackets, which hit the smallest operators hardest. Jade is also a key revenue source for the other side in this conflict. The Kachin Independence Army has its own system of revenue collection, and figures associated with other ethnic armed groups, including the Wa State Army/United Wa State Party, have direct interests in the jade business.

Within Kachin State, jade has become a symbol of profound injustice. 

With the legal mines largely taken over by powerful, well-connected companies local people seeking a living from jade have to operate informally in dangerous conditions. They are joined by thousands of illegal yemase (jade pickers) who have flooded in from other states  to seek their fortune.

Local communities have worked the mines for generations, using the income to build homes and educate their children. Now, they find themselves largely shut out, and criminalised even for carrying good quality jade. They see army-backed companies gorging themselves on the ‘jewel of Kachin’, while they suffer the impacts of war, the destruction of their environment, and rampant drug usage. The situation deepens anger and resentment against the state, feeding ethnic nationalism and undermining opportunities to build the trust essential to achieve peace.

In its first months, the the new civilian-led government took positive action to start tackling the problem. The incoming minister immediately visited Hpakant,  and in July 2016, the government announced a ‘pause’ on licensing, barring  extensions or new awards until a revised legal framework is in place. The Department of Mines has also commissioned an environmental management plan which is now being prepared. 

However, mining continues in areas where jade licences have yet to expire, and those who profit from the industry are pressing for revised laws and regulations so they can resume full activity quickly. It is vital that the government holds firm and takes the time needed to bring in the right safeguards and protect local people from further corruption and other harms. 

The conflict provides a useful pretext to maintain the status quo. Although the major jade mines are in a government-controlled area, the military has repeatedly used the fighting to keep prying eyes out. There is a recognisable pattern of the military seizing on excuses to launch attacks at moments when the industry comes under pressure. As illustrated below, for example, a ministerial visit to Hpakant last year was immediately followed by an escalation in fighting, taking the spotlight off reform. International observers, such as the UN Special Rapporteur on human rights in Myanmar have found themselves blocked at the last minute from visiting the mines and bringing attention to the changes needed. 

At the same time, jade data such as concession maps and sales information, remains largely under wraps, creating a further obstacle to effective scrutiny. And, within the jade mines, some companies are finding ways around the government imposed licensing suspension, by teaming up to pool their machines in mines still open for business. This allows them to continue extraction, and keep the jade revenues flowing as long as possible.

Daw Aung San Suu Kyi has made achieving peace her number one priority. In the north of the country, however, faith is starting to falter in the face of escalating fighting and widespread suffering. The upcoming talks provide an opportunity to make progress one of the most serious obstacles to peace – jade. 

The experience of past ceasefire in Kachin State has shown the pitfalls of simply laying down arms without tackling underlying disputes and grievances. This means sharing access to jade and the benefits it brings fairly, promoting sustainable local and national development, and protecting against corruption, environmental destruction and human rights abuses.

Progress now on jade sector reform would address a key catalyst of the fighting, help build trust and bring the country closer to the lasting peace and democracy the people deserve.