Thirst for Blood Jade: Conflict, Exploitation, and Environmental Collapse in Myanmar

If you have heard anything about Myanmar’s northern Kachin state in documentaries, you probably know about their protracted armed conflict, severe humanitarian crises, and extensive environmental damage from resource extraction. Although some rare earth metals are involved, most of these resources are Jade. The country produces nearly 70 percent of the world’s jadeite, a gem that is deeply valuable in China. The Jade industry is worth around 30 billion dollars, and most of this sum is used to further fuel the already burning conflict in Myanmar.

Myanmar has endured the world’s longest-running civil conflict. Since the 1962 military takeover, waves of authoritarian rule, ethnic insurgencies, and coups have divided the nation. The 2021 coup reignited violence, collapsing a decade of slow democratic progress under Aung San Suu Kyi. Ethnic minority states such as Kachin, however, have been militarised even during the partly democratic reign so the governments could control the trade of natural resources, especially Jade. Armed groups, the military, and companies linked to former generals all compete for access to mining revenues, which further fuels the conflict.

After a ceasefire between the Kachin Independence Army (KIA) and the Burmese military in 1994, large-scale mining began in Hpakant, the epicentre of jade extraction. The peace was shortlived. When fighting resumed in 2011, the military consolidated its hold on the mines, marginalizing the KIA and civilians. Licenses were issued to companies linked to the military elite and drug lords, with profits flowing to powerful military personnel rather than local communities. According to Global Witness, Myanmar’s jade industry was worth about $31 billion in 2014, equivalent to nearly half of the country’s GDP, yet the people of Kachin State still remain destitute and exploited.

Mining in Hpakant operates with little regulation or environmental oversight. Companies often exceed government limits for waste heaps, creating massive piles of mine tailings that can rise hundreds of feet. These unstable slopes frequently collapse, burying miners alive. Landslides are now a recurring tragedy. In November 2015, more than 100 miners were killed in one collapse; in July 2020, at least 162 people died when a mountain of waste gave way. These disasters are the result of reckless dumping and unmonitored blasting with dynamite, practices that also erode riverbanks and destroy farmland.

The Uru Stream, which runs through Hpakant and was the main source of water for residents, is now choked with sediment and industrial waste. Villages along its banks have been washed away by floods caused by tailings dumped directly into the water. Sediment buildup has raised the stream’s bed by nearly 20 feet since the 1990s. Clean water has become scarce, forcing residents to rely on rainwater or to purchase it at prices that exceed a day’s wages. Locals say the land itself has vanished, replaced by mounds of debris and abandoned pits filled with toxic water.

Moreover, around 300,000 migrant workers, many from impoverished parts of Myanmar, labor in the jade mines, often without safety gear or contracts. They live in tarpaulin shelters and scavenge through waste piles in search of stones discarded by big companies. To endure the grueling work, many miners turn to heroin, which is cheap and easily available. Drug addiction, HIV, and prostitution have become endemic in Hpakant. With few other jobs available, women are often forced into exploitative labor or sex work. Miners describe a community without order or protection, where death, disease, and despair are constant companions.

The military and its affiliates dominate official mining licenses through crony companies. The KIA, in turn, taxes jade extracted from territories under its influence, making the gem a major funding source for both sides of the conflict. The trade thus perpetuates the very violence that has destabilized the region for decades. The industry’s structure ensures that while elites in Naypyidaw and investors abroad grow rich, local communities are left with poisoned rivers, landslides, and addiction.

At the center of this conflict lies China. Jade holds immense cultural and spiritual significance in traditional Chinese mythology, symbolizing purity and prosperity. Chinese demand fuels Myanmar’s entire jade economy. Up to 80 percent of the stone is smuggled across the border to Yunnan Province. The city of Ruili, the world’s largest market for unfinished jade, has become a hub for illicit trade, smuggling, and the spread of HIV. Chinese financiers underwrite many of the major mining operations in Hpakant, often through local proxies. As much as 70 percent of investment in the largest jade companies reportedly comes from Chinese sources.

China’s role is therefore pivotal. Its appetite for jade drives environmental destruction in Myanmar, while the flow of illegal stones and heroin across the border worsens social crises in both countries. Yet Beijing’s influence also presents an opportunity. It has issued conflict-mineral guidelines for its companies abroad, signaling a potential shift toward responsible sourcing. If enforced, these could pressure jade traders to disclose ownership, stop illegal smuggling, and curb funding to armed groups. For now, however, regulation remains weak and profit continues to outweigh accountability.