Myanmar rebels seize key rare earth mining hub, disrupting military junta's revenue

By AJP Posted : October 24, 2024, 14:43 Updated : October 24, 2024, 14:43
This image released Oct 10 2023 show devastation from Myanmar juntas Oct 10 artillery strike that killed 30 at Kachin refugee camp AFP-Yonhap
This image released Oct 10 2023 shows devastation from Myanmar junta's Oct 10 artillery strike that killed 30 at Kachin refugee camp. AFP-Yonhap
SEOUL, October 24 (AJP) - The Kachin Independence Army (KIA) has captured Panwa, a major rare earth mining center in northern Myanmar's Kachin state, the rebel group said on Tuesday, after earlier taking control of nearby Chipwe mining area.

Myanmar exported about 50,000 tons of rare earth oxide to China last year, becoming the world's largest exporter of the material according to rare earth broker Odd Minet. China halted imports of Myanmar rare earths and exports of ammonium sulfate, crucial for extraction, amid intensified fighting in the region last month.

"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," research firm Adamas Intelligence said in a report. While the KIA said it's currently focused on managing Panwa and has no economic plans, it declined to comment on potential cooperation with China.

"I expect KIA plans to resume the REO business provided China is prepared to accept the exports and supply the technicians and ammonium sulphate. But I reckon it will expect payments before letting the companies do so”," said Matthew Hope, analyst at Odd Minet, adding that supply negotiations could delay exports until early next year, potentially driving up prices for rare earth oxides used in magnets.
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