The Kachin Independence Army (KIA) fighting Myanmar’s military junta in power since 2021 on Wednesday said it has taken control of the country’s rare earth mining region.
Rare earth mining in Myanmar is concentrated in Kachin state around the towns of Panwa and Chipwe, adjacent to southwestern China’s Yunnan province. The region also hosts a number of gem mining sites and is a key trade route into Myitkyina (Kachin state’s capital) and north into China.
A KIA spokesperson told Reuters on Tuesday the group wrested control of the area from the militia group NDA-K over the weekend but did not elaborate on its plans mining in the region. The NDA-K is allied with the ruling junta and has been working with Chinese companies involved in mining.
In a note on Tuesday, Adamas Intelligence, a Toronto-based rare earth and battery metals research consultancy, said rebel control of these mining sites could potentially disrupt rare earth concentrate shipments into China, which have declined for four months straight owing to the monsoon season and other challenges.
In June, a landslide at a rare earth mining site in Ngilot village in Panwa region claimed 10 lives and left at least 30 people missing.
Adamas says with Myanmar responsible for 57% of global dysprosium and terbium mine supply last year, a prolonged disruption would strain availability of feedstock supplies for magnet makers during what is typically a seasonally strong quarter.
More than 90% of electric vehicles feature at least one permanent magnet motor and rising production from Myanmar and low prices have made it easy for automakers “to turn a blind eye to the environmental destruction and social upheaval that rare earth mining fuels in the country,” according to Adamas.
“Should the recent border seizure and expected capture of rare earth mines this week result in a disruption of rare earth concentrate flows to China from Myanmar, importers of Chinese rare earths and magnets may soon have to pay, literally and figuratively, for failing to support and secure alternative sources of supply in time.”
Source: MINING.COM – Read More
