Myanmar’s Rare Earth Mining Flourishes Amidst Ongoing Conflict

February 29, 2024

Myanmar has emerged as one of the world's top ten producers of rare earth elements, crucial for the global shift towards renewable energy. However, this expansion comes at a significant cost, including environmental degradation and potential contributions to the country's internal conflicts. Amid intensified armed conflict between Burmese insurgents and the military junta, the rare earth industry has faced accusations of causing irreversible damage to one of the world’s most biodiverse rainforests and contributing to internal displacement.

Satellite imagery utilized by Global Witness has revealed extensive mining operations in northern Kachin state, near the China border, covering an area as large as Singapore. These illegal mining activities have led to deforestation, heavy metal pollution, and acidic waste issues due to poor processing practices.

Corruption within the sector allows the military junta to extract bribes from mining companies, many of which are reportedly fronts for Chinese businesses. Additionally, several mines are operated in territories controlled by ethnic militias, including the New Democratic Army and the Kachin Independence Army.

Despite global companies being linked to Myanmar's rare earths, nearly half a million people have been displaced within the country since October 2023, according to Human Rights Watch. Particularly in Kachin and Shan states, over 121,000 individuals have been displaced, highlighting the complex challenges faced by ethnic groups in Myanmar.

The country’s participation in international environmental discussions, such as COP28, remains complicated due to the political situation. While the junta is not officially recognized, efforts continue to engage in climate policy through Indigenous delegations, emphasizing the need for sustainable and ethically sourced rare earth elements amidst the mining boom.

    Subscribe to the most timely news about the metals market

    Metals Wire's weekly digest for mining and processing industry professionals, investors, analysts, journalists.
    By signing up you agree to the Metals Wire
    Privacy Statement