A Chinese-backed militia has taken control of new rare earth mines in eastern Myanmar, according to a Reuters report, citing sources.
China, which dominates the processing of heavy rare earths, relies on Myanmar for the raw materials needed to manufacture critical components such as wind turbines, medical devices and electric vehicles.
Recent disruptions in Myanmar’s northern mining belt, which has been taken over by an armed group, have prompted Chinese miners to seek new sources in the Shan state.
Under the protection of the United Wa State Army (UWSA), more than 100 workers are engaged in extracting valuable minerals such as dysprosium and terbium.
The UWSA, with its commercial and military ties to China, also oversees one of the world’s largest tin mines. The presence of this militia provides security for the mining operations, which are strategically located near the Chinese border.
Despite the lack of transparent business records in Myanmar, four sources have confirmed the militia’s role in protecting the mines, and satellite imagery has corroborated the existence of these mining sites.
University of Manchester lecturer Patrick Meehan, an expert on Myanmar’s rare earth industry, has noted that these mines represent significant new facilities outside the northern Kachin region, the report said.
The stability provided by the UWSA in the Shan state contrasts with the ongoing civil war in other parts of Myanmar, making it an attractive region for Chinese investment and mining activities.
Beijing has recognised the strategic significance of rare earth elements, responding to the re-escalation of the trade conflict with the US with stricter export controls on these crucial metals and magnets.
Although there has been a slight relaxation in Chinese export approvals and indications from US President Donald Trump of headway in trade negotiations, these restrictions have significantly disrupted international supply networks that are vital to the automotive, aerospace and semiconductor industries.
China experienced a surge of 23% in its exports in May compared with April, even as the country enforced export limitations on some essential minerals. The export volume reached 5,864 tonnes, the largest monthly export quantity in the past 12 months.
This boost in export levels occurs against the backdrop of worldwide manufacturing challenges, which have been exacerbated by the shortages resulting from China’s export controls.
