Sources close to the Ta’ang National Liberation Army (TNLA) told DVB that regime troops recaptured an outpost at Shwe Ayar Tanepinlel viewpoint near Taunghkam village in Nawnghkio Township of northern Shan State on Tuesday. 

“Since the military has superior manpower and fire power, we have been gradually retreating,” the source told DVB, adding that the regime may be about to launch a counteroffensive to retake Nawnghkio, which was seized by the TNLA on July 10.

The TNLA has not confirmed the loss of the Shwe Ayar Tanepinlel viewpoint outpost to the regime. Taunghkam is located 20 miles (32 km) south of Nawnghkio, which is 96 miles (154 km) south of the region’s capital Lashio and 147 miles (236 km) north of the Shan State capital Taunggyi.

Regime forces recaptured Artillery Battalions 206 and 406 in Taunghkam from the TNLA last month after they were seized in August. It withdrew troops based in Nawnghkio that were from the Yangon-based Light Infantry Division (LID) 11 and the Naypyidaw-based Light Infantry Battalion (LIB) 302.

It replaced them with units from the Northeastern Regional Military Command (RMC) headquarters in Lashio Township and the Eastern Central RMC in Kholam town of Nansang Township on March 10. 

The Northeastern RMC was seized from the regime when the Myanmar National Democratic Alliance Army took control of Lashio on Aug. 3.

“[Regime forces] had been stationed in Taunghkam for about six months. Since some territory has been reclaimed, LID 11 and LIB 302 were withdrawn and replaced with Shan-based units,” a source close to the regime told DVB.

Taunghkam is a strategic village 55 miles (88 km) east of Pyin Oo Lwin in neighbouring Mandalay Region. This is where the military’s Defence Services Academy (DSA) and several of its bases are located. 

Taunghkam also serves as a vital link between northern and southern Shan. The TNLA controls 11 townships in northern Shan and Mogok Township in Mandalay Region.