Seven Chinese nationals living illegally in Baw Hseng village tract, Kalaw Township, southern Shan State, were arrested by military police amid rising tensions over mining profits.

The arrests took place on March 16, when authorities, including the administrator of the Kalaw Township Military Council, detained the individuals. A local resident suggested the incident stemmed from a business dispute within the mining industry.

“I think they were fighting over business matters. The police came and took them away. We heard they are still being held at the police station, but we don’t know where or what will happen next,” a resident familiar with the situation told SHAN.

Among those arrested were two individuals from Land Dragon mining company, four from Taunggyi Thein Company, and one from Power Star Company, according to local sources.

The detainees had been living illegally in Baw Hseng for decades, and many other undocumented Chinese nationals are still residing in the area, the source added.

Currently, lead ore sales in Baw Hseng have come to a standstill. Chinese companies have temporarily halted purchases due to the military council’s refusal to grant export permits, a mining worker explained.

“The company said they can’t export right now, and the roads are blocked. We’re not sure what the issue is with the Chinese buyers. The mined metals haven’t been sold yet, but the price has increased from 3,000 to 5,000 kyats per pis,” the worker said.

Some locals work for Chinese mining companies, while others mine independently and sell the ore themselves.

Illegal Chinese migration to Baw Hseng has been an ongoing issue. In May 2024, two undocumented Chinese nationals were arrested and deported, according to local reports.

Beyond the immigration concerns, mining operations have also worsened environmental conditions. Local communities experience annual water shortages, exacerbated by mining activities that deplete natural water sources.