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We elucidate the kinetic process of plasma heating by the resonant excitation of the shear Alfv\'en wave. The heating occurs as a result of the damping of the modified (by the finite ion Larmor radius and electron inertia) Alfv\'en wave which is excited by mode conversion at the resonant layer. The heating rates of ions and of electrons are comparable in the collisional regime; otherwise electrons are predominantly heated.
Hasegawa et al. (Mon,) studied this question.