The Ta’ang National Liberation Army (TNLA) says large-scale ruby mining in Mogoke, Mandalay Region, will be suspended until it benefits the community.
The TNLA and allies seized the ruby hub 189km north of Mandalay city in July.
“We are designing a policy to benefit residents and serve their interests. We will suspend large-scale gem mining with heavy machinery until then,” said TNLA spokeswoman Lwei Yay Oo.
Military-owned Myanma Economic Holdings Limited (MEHL) and other firms with links to the army have controlled Mogoke’s mines, which account for 90 percent of Myanmar’s ruby production.
Gem merchants say the TNLA has shut companies owned by MEHL and junta-aligned Pa-O National Organization leader Ne Win Tun, and is vetting other companies.
Individuals have been allowed to mine in Mogoke since September to support their livelihoods, said Lwei Yay Oo.
“They agreed an acceptable level of tax to pay,” she said.
Miners say they were told to pay 40,000 kyats in tax a year.
A Mogoke resident said: “Machinery is banned. Searching is done by hand. The TNLA does not levy a percentage tax on gems after the 40,000-kyat charge.”
There were nearly 80,000 individual miners in Mogoke before the 2021 coup, according to parliamentary records.
Mining companies did not implement environmental management plans at their mines and profits were never invested in the township, said residents.
“The mines barely considered the community. They only cared about profit. The roads around the mines in Thapanpin were badly damaged by machinery but the companies made no repairs.”
Civil society organizations under the National League for Democracy administration organized tree-planting campaigns and called for changes to the Gems Law.
The TNLA is responsible for the town’s administration and security and the allied Mogoke People’s Defense Force has been sidelined, said a resident.
KBZ Group of Companies chairman Aung Ko Win, retired Lieutenant General Myint Hlaing and Ne Win Tun amassed great wealth from the township’s ruby mines.
The Conflict Rubies report published in December 2021 by London-based Global Witness says at least 17 companies with military ties were awarded Mogoke mining licenses.
Myanmar’s gems trade was worth US$346-415 million a year from 2014 to 2017 before licenses began to expire, the report said.
However, the sector – including gold, silver, jade, diamonds and sapphires – could have been worth US$2 billion annually when smuggling and illicit trading were included, it added.
