Exports to China have declined since rebels seized control of key mining areas last year.
The rebel group controlling Myanmar’s rare earth mining region has announced plans to resume shipments of existing inventories to China starting Thursday, according to a statement seen by Reuters. The raw materials will be subject to a newly-imposed export tax, the statement continues.
Rare earth mining in Myanmar is concentrated in the northern Kachin state, which borders China. In October, the Kachin Independence Army (KIA), a rebel group opposing the military junta, seized control of major mining hubs. Since then, exports of rare earth compounds and oxides to China have fallen sharply. However, the statement only mentions the export of existing stockpiles and does not specify the volume of inventory available for shipment. Amid the ongoing conflict between rebels and the military junta, the situation remains volatile. It is unclear whether rare earth mining in Kachin has resumed or to what extent; in December, insiders reported that operations were “on hold.”
Chinese imports of rare earth oxides and compounds have been declining in recent months
Despite being one of the world’s largest producers of rare earths, China remains the biggest importer of raw materials. Myanmar has become a crucial supplier in recent years, particularly of heavy rare earth elements, which are essential for manufacturing permanent magnets.
In collaboration with TRADIUM GmbH, we analyzed the potential supply disruptions for heavy rare earths that Myanmar’s geopolitical situation has posed in the past. You can find the full report here.
Photo: bethwolff43 via Canva