Apple Inc. (NASDAQ:AAPL) Myanmar Suppliers Are Insurgents In Control of A Tin Mine

Apple Myanmar suppliers are allegedly a group of rebels, who have banded together and taken control of a tin mine in the North-eastern corner of Myanmar. These insurgent suppliers are responsible for supplying tin ore to a variety of companies, including some large names, such as Apple, General Electrics Company (NYSE:GE) and so forth.

In an investigation, which was launched on the mine in question, it was discovered that the mine is controlled by the United Wa State Army, which is not a good sign for the companies that are being supplied by these individuals. The reason behind this is this group has been sanctioned by the United States.

The group was placed under sanction in 2003, due to alleged charges, which involved the allegation that the group was responsible for smuggling narcotics. This is not a good sign for various companies who make use of this supplier, including Apple Myanmar.

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What does a sanctioned supplier mean for Apple Myanmar Suppliers

It is not commonly known, but a sanctioned organization is considered a blacklisted organization, in terms of legislation of the United States. This poses a problem for the various companies that make use of this supplier, regardless of whether or not they were aware that their suppliers were sanctioned.

The reason behind the problem is due to  a treasury spokeswomen, who stated, “Sanctions generally prohibit U.S companies from engaging in any direct or indirect transaction dealings with individuals or entities.”

Although, there will be no consequences for the companies that were discovered to have been making use of this supplier, due to the lack of support sustaining that the companies were aware of the position of their supplier. However, according to people familiar with the matter, there is a high chance that companies will be forced to find a new supplier for their materials.

Companies responses to this discovery

It is speculated that a vast majority of the companies, who previously made use of the supplier from Myanmar were not aware of the precarious situation their company was in, with regards to dealing with a blacklisted supplier. Apple Myanmar was one of the majority, who stated that they would be launching an investigation into their supply chains to learn how to improve their supplier selection system.

Apple stock closed on Monday at $111.46, after witnessing a decline of $0.11 or 0.10%

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