KIA set to fully resume rare earth mining in captured ‘special region’

The Kachin Independence Army (KIA) is preparing to resume full-scale mining of rare earth deposits in a key region formerly controlled by a pro-regime militia, according to sources. Kachin Special Region 1, located near the Chinese border, was seized from the forces of elderly warlord Zahkung Ting Ying, a long-time ally of Myanmar’s military, late last year. The area is rich in rare earth minerals, crucial for many high-tech products like smartphones, electric vehicles, and defence systems. Deposits in Chipwe and Pangwa (Pang War) townships—both part of the region—are estimated to be worth billions of dollars. Despite the growing demand and intensifying global competition for this vital resource, however, production has been curtailed by China’s closure of its border with the region, as it seeks to pressure the KIA to end its ongoing conflict with Myanmar’s military junta. The closure led to shortages of ammonium sulfate and other chemicals used in rare earth extraction, bringing mining operations almost to a standstill. According to a Chipwe Township resident familiar with the situation, only mines that already possessed the necessary chemicals were able to continue operating. “When the KIA initially took over the area, new mining sites were closed, and only the old sites were allowed to operate. Those with stored raw chemicals could continue limited operations, while sites without supplies remained shut,” he said, speaking on condition of anonymity. In recent months, however, China has loosened its restrictions, amid reports that the United States and India are both actively seeking access to Kachin State’s rare earth riches. “Both raw materials for rare earth mining and equipment for gold mining are being brought in from China. They may follow set schedules, but shipments from across the border keep coming,” a resident tracking natural resource extraction in Kachin State said. Chemical waste and improperly discarded storage bags are seen piled up at an abandoned mine site (Photo: Supplied) There have also been calls for mine workers, he added. “When I went back to Chipwe last week, I noticed a job poster that had been there for around a month. This suggests that mining operations have at least partially resumed already,” he said, adding that there have also been more Chinese nationals in the town recently. But to do business in the special region, the Chinese businesspeople who operate most of the mines must negotiate with KIA officials, who have yet to fully sign off on a full-scale resumption of mining activity. “The relevant department might approve it by the end of this year, but I haven’t heard any confirmation yet,” KIA spokesperson Colonel Naw Bu told Myanmar Now when asked for comment on reports of an imminent restart of stalled operations. There are also questions about how the KIA will manage pollution from the mines, which are notorious for their negative environmental impact. Wastewater from the extraction process can easily enter the water supply, presenting a serious health hazard to local residents and their livestock. There is, however, no doubt about who will win in the competition for Kachin State’s rare earth resources, according to political analyst Dr. Hla Kyaw Zaw. “China holds a geographical advantage and has established robust transport and basic infrastructure from the outset, making it difficult for India and the USA to gain access even if they try,” she said. Myanmar ranks third in rare earth production after China and the US, holding a 13 percent share of the global market. According to the UK-based organisation Global Witness, China, which controls 90 percent of the world’s rare earth market, is the primary buyer of Myanmar’s rare earths.

KIA set to fully resume rare earth mining in captured ‘special region’

The move comes as global competition for rare earth minerals—vital for the production of high-tech goods—continues to intensify

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