Contract for Controversial Chinese-Backed Copper Mine Amended
24 July 2013
Chinese state news agency Xinhua reports that Burma’s State Mining Enterprise, Myanmar Economic Holdings Ltd (MEHL) and China’s Wanbao Mining Ltd have amended the benefit-sharing contract conditions for the controversial Letpadaung copper mine in Monywa Township, northwestern Burma. The new contract, signed on Wednesday, allocates 51 percent of the mine’s revenues to the Burmese state, while Wanbao and Burma military-owned conglomerate MEHL share 49 percent of project revenues. Two percent of net profits will go “towards corporate social responsibility with a focus on immediate communities,” Xinhua reports. Another US$ 2 million annually will be set aside for limiting the mine’s environmental impact.