• Burmese
Friday, June 20, 2025
No Result
View All Result
NEWSLETTER
The Irrawaddy
27 °c
Yangon
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
No Result
View All Result
The Irrawaddy
No Result
View All Result
Home News Burma

World Bank Financing Arm Under Fire Over Burmese Coal Mine Link

Seamus Martov by Seamus Martov
March 30, 2017
in Burma
Reading Time: 4 mins read
0 0
A A
Mining operations at the Ban Chaung coal mine. / Tarkapaw Youth Group

Mining operations at the Ban Chaung coal mine. / Tarkapaw Youth Group

6.4k
VIEWS
Share on FacebookShare on Twitter

The World Bank’s private sector lending arm, the International Finance Corporation, which gives financial assistance to businesses that invest in the developing world, has come under criticism in a new report over its connection to a controversial coal mining operation in Tenasserim Division.

The Ban Chaung coal project is led by the Thai firm Energy Earth and is located in territory partially controlled by the Karen National Union (KNU), Burma’s oldest ethnic armed group. According to a report released earlier this month by the NGO Inclusive Development International, the mine is severely affecting the health and livelihoods of locals in the area, who have already endured years of conflict.

The report titled “Reckless Development: The IFC’s Dodgy Deals in Southeast Asia,” alleges that the IFC “is surreptitiously channeling money” to a series of extremely controversial projects across Asia by way of for-profit financial intermediaries, like commercial banks and private equity funds, in a manner that runs afoul of the group’s own guidelines. According to the report’s authors, the IFC, in addition to its connection to the Burmese coal mine, is also linked to a range of other highly contested projects in Asia, including mega-hydropower dams in Vietnam and Cambodia and massive land grabs in Cambodia and Laos.

RelatedPosts

Paranoid Junta Turns to Foreign Expertise After 4 Years of Chaos; and More

Paranoid Junta Turns to Foreign Expertise After 4 Years of Chaos; and More

May 10, 2025
1.6k
Quake Fails to Quell Russian Nuclear Romance; Naypyitaw Truth Concealed; and More

Quake Fails to Quell Russian Nuclear Romance; Naypyitaw Truth Concealed; and More

April 26, 2025
1.5k
Naypyitaw Parliament Crumbles as Myanmar Junta’s Grand Ambitions Collapse 

Naypyitaw Parliament Crumbles as Myanmar Junta’s Grand Ambitions Collapse 

April 24, 2025
1.4k

The IFC told The Irrawaddy that it disputes many of the findings presented: “While we share concerns for communities negatively impacted by some of the projects mentioned, we find many factual inaccuracies in the report.”

According to the report, when fully operational, the Ban Chaung mine is expected to adversely affect some 16,000 people from 23 villages living in the surrounding area. A press release quoted a spokesperson from one of the local groups that aided with the report warning of the serious repercussions of the mine project, which already allegedly includes the poisoning of local waterways and a significant decrease in local air quality due to noxious coal underground fires triggered by strip mining.

“After 70 years of civil war, the people of Ban Chaung are trying to rebuild their lives again from zero. But rather than focusing on community development and improving education, health and livelihoods, we have had to spend five years fighting with this company that is trying to take away everything,” said Naw Pe Tha Law from the Tarkapaw Youth Group.

Another villager quoted by the report indicated that company representatives had informed him of the permission from the KNU to go ahead with the project, which is located in territory that has been for decades under the control of the KNU’s Fourth Brigade. A report from 2015 by the Tarkapaw Youth Group also reported that Earth Energy’s Thai partner, East Star, a firm know to have longstanding ties to KNU officials in the area, had received a permit from the KNU’s Fourth Brigade to operate in 2011, a year before the firm entered into a partnership with Earth Energy.

Although the coffers of one of the country’s largest armed groups will grow thanks to the mining in Ban Chaung, the local population will see little, if any, benefit. Villagers interviewed for the report say that since mining operations began in 2012, the area has become unlivable.

“The smell is hideous. When I’m near it, I can’t breathe. I get dizzy and have headaches,” said a mother of six, interviewed for the report, who was forced to abandon her home because of the toxic fumes from uncontrolled underground coal fires triggered by the mining operations.

IFC Mine Connection Via Austrian and Chinese Banks

The report’s authors describe the IFC as being linked to the project by way of equity investments made in recent years by the IFC in two large commercial banks, Austria’s Raiffeisen Bank and the Postal Savings Bank of China, which the report describes as being closely connected to the Thai firm leading the project.

In January 2014, the IFC bought US$186 million worth of shares in Raiffeisen, at a time when the bank was facing significant financial difficulties, giving the Washington-based IFC a significant stake. Shortly after this deal was completed, Raiffeisen bought a 3 percent stake in Earth Energy, which is listed on the Thai stock exchange.

The IFC’s involvement with the Postal Savings Bank of China began in 2015 when the IFC bought a $300 million stake in the bank. Shortly after this deal was completed, the partially state-owned bank in turn co-arranged $1.5 billion in corporate bonds for four of China’s “big five” electric utility companies: Huaneng, Datang, Guodian and China Power Investment. An investors report produced by venture capital firm CM Equity cited by the Inclusive Development International report indicates that these firms are major buyers of Energy Earth’s coal.

According to the report, because the bonds that were underwritten by the Postal Savings Bank were general, the power firms would be free to use these funds to buy coal for their China-based power plants. “As such, the IFC, through its equity stake in Postal Savings Bank, appears to be channel¬ing funds that could be used for the purchase of coal from the Ban Chaung mine,” the report claimed.

In addition to drawing scrutiny from NGOs and environmentalists who frequently are at odds with much of what the IFC does, the move to invest in the Postal Savings Bank has also been questioned by the IFC’s former director Peter Woicke.

“It is unclear to me what the role is for the IFC in [the Postal Savings Bank of China]… If that [investment returns] is why you are doing it, you might as well be Goldman Sachs. But the job of the IFC is not just to be Goldman Sachs,” Woicke told the Financial Times in December 2015.

IFC told the Irrawaddy: “As has been communicated to IDI [Inclusive Development International] on numerous occasions, many of the sub-projects mentioned either pre-date or fall outside the scope of IFC’s investment with the financial institution mentioned.”

“The report is misleading in insinuating that IFC’s investments in the FIs [financial institutions] mentioned indirectly support a significant number of harmful activities. In any cases where IFC confirms non-compliance with the applicable environmental and social requirements by our FI clients, we raise these issues with our clients and seek redress,” added an IFC spokesperson.

The latter claim about steps taken by the IFC when it finds non-compliance by its clients seems to be at odds with a recent monitoring report by the IFC’s own Compliance Advisor/Ombudsman (CAO). The CAO report, which studied a sample of the IFC’s investments, found widespread systemic non-compliance by the IFC with its own policies and procedures.

The CAO report found that the “IFC does not, in general, have a basis to assess [financial intermediary] clients’ compliance with its [environmental and social] requirements,” which the CAO flagged as “highly problematic.”

 

Your Thoughts …
Tags: DevelopmentEnergyFinance
Seamus Martov

Seamus Martov

...

Similar Picks:

Myanmar Junta Enforces Rule Requiring Migrant Workers to Remit 25% of Pay
Burma

Myanmar Junta Enforces Rule Requiring Migrant Workers to Remit 25% of Pay

by The Irrawaddy
August 5, 2024
15.1k

Those working in Thailand under a govt-to-govt scheme who fail to remit 25% of their pay via the formal banking...

Read moreDetails
Myanmar Junta Detains S’pore-Listed Yoma Strategic Holdings’ Chairman Serge Pun
Junta Cronies

Myanmar Junta Detains S’pore-Listed Yoma Strategic Holdings’ Chairman Serge Pun

by Hein Htoo Zan
July 10, 2024
12.9k

The junta crony and Yoma Bank head is being held and questioned in Naypyitaw, sources said. He was earlier questioned...

Read moreDetails
Family Friend Helps Myanmar Junta Boss Buy Arms From Israel 
Junta Cronies

Family Friend Helps Myanmar Junta Boss Buy Arms From Israel 

by Aung Zaw
September 21, 2024
8.4k

A brush with the law in Thailand exposed the depth of casino boss and arms dealer Tun Min Latt’s links...

Read moreDetails
Tracking the Business Empire of Myanmar Regime Stalwart Moe Aung and His Siblings
Investigation

Tracking the Business Empire of Myanmar Regime Stalwart Moe Aung and His Siblings

by Aung Thit
September 4, 2023
7.1k

In the second of a two-part series, The Irrawaddy’s Investigation Desk examines more of the vast business interests of the children of...

Read moreDetails
Myanmar’s Junta Is Funding Its War Through Forex Scams, Economists Say
Burma

Myanmar’s Junta Is Funding Its War Through Forex Scams, Economists Say

by Vincent MacIsaac
August 20, 2024
6.5k

Forcing foreign currency conversion rates that vastly overvalue the kyat is delivering a windfall to the cash-strapped junta.

Read moreDetails
Myanmar has been Running Out of Power Since the Coup: World Bank
Business

Myanmar has been Running Out of Power Since the Coup: World Bank

by Hein Htoo Zan
September 8, 2023
5.3k

The energy crisis will worsen as long as the junta is in control, expert adds.

Read moreDetails
Load More
Next Post
New buildings in downtown Rangoon. Floor to ceiling windows in some new construction attracts strong heat from the sun, suggesting a lack of attention to local climatic conditions. / Reuters

Has the NLD Learned Nothing About Ethnic Concerns?

A female tiger looks on after spotting a camera trap set by Thailand’s Department of National Parks, Wildlife and Plant conservation (DNP), Freeland, at a forest in Eastern Thailand. Undated. / DNP / Freeland Handout via Reuters

Thai Jungle Cameras Reveal New Breeding Population of Endangered Tigers

No Result
View All Result

Recommended

Myanmar Tourism Sector Mocks Junta’s Russia Tourist Drive

Myanmar Tourism Sector Mocks Junta’s Russia Tourist Drive

7 days ago
1.8k
Untested Commander Takes Charge as Myanmar Military Faces Toughest Challenge in Decades

Untested Commander Takes Charge as Myanmar Military Faces Toughest Challenge in Decades

7 days ago
1.8k

Most Read

  • Myanmar’s Aging Leaders Continue to Suffer in Junta Jails

    Myanmar’s Aging Leaders Continue to Suffer in Junta Jails

    shares
    Share 0 Tweet 0
  • Mon Groups Vow to Boost Attacks on Myanmar junta

    shares
    Share 0 Tweet 0
  • Trade and Traffic from Thai Border Region Dwindle as Checkpoints Multiply

    shares
    Share 0 Tweet 0
  • The Lady Myanmar’s Generals Can’t Defeat

    shares
    Share 0 Tweet 0
  • Thai PM Faces Growing Calls to Quit in Cambodia Phone Row

    shares
    Share 0 Tweet 0

Newsletter

Get The Irrawaddy’s latest news, analyses and opinion pieces on Myanmar in your inbox.

Subscribe here for daily updates.

Contents

  • News
  • Politics
  • War Against the Junta
  • Myanmar’s Crisis & the World
  • Conflicts In Numbers
  • Junta Crony
  • Ethnic Issues
  • Asia
  • World
  • Business
  • Economy
  • Election 2020
  • Elections in History
  • Cartoons
  • Features
  • Opinion
  • Editorial
  • Commentary
  • Guest Column
  • Analysis
  • Letters
  • In Person
  • Interview
  • Profile
  • Dateline
  • Specials
  • Myanmar Diary
  • Women & Gender
  • Places in History
  • On This Day
  • From the Archive
  • Myanmar & COVID-19
  • Intelligence
  • Myanmar-China Watch
  • Lifestyle
  • Travel
  • Food
  • Fashion & Design
  • Videos
  • Photos
  • Photo Essay
  • Donation

About The Irrawaddy

Founded in 1993 by a group of Myanmar journalists living in exile in Thailand, The Irrawaddy is a leading source of reliable news, information, and analysis on Burma/Myanmar and the Southeast Asian region. From its inception, The Irrawaddy has been an independent news media group, unaffiliated with any political party, organization or government. We believe that media must be free and independent and we strive to preserve press freedom.

  • Copyright
  • Code of Ethics
  • Privacy Policy
  • Team
  • About Us
  • Careers
  • Contact
  • Burmese

© 2023 Irrawaddy Publishing Group. All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Business
    • Economy
    • Business Roundup
  • Books
  • Donation

© 2023 Irrawaddy Publishing Group. All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.