Photo – AFP
This Governance Tracker No. 2(English Version) was published on September 26, 2025, as a translation of the original Burmese version published on September 25, 2025.
▪️Period
July to August 2025
▪️Region
Controlled areas of the KIO/KIA in Kachin State
▪️Actor Involved
Kachin Independence Organization/ Kachin Independence Army (KIO/KIA)
▪️Issue
The KIO has seized rare earth mining areas previously controlled by the Kachin Border Guard Force and allied militias. Following a steep fall in Myanmar’s rare earth exports to China this year, Beijing has pressed the KIO. The KIO’s resource governance became a key factor playing a role in political bargaining and power consolidation. Meanwhile, local residents are paying a high price for the expansion of extraction, reporting water pollution, deforestation, and health impacts—including fatalities.
▪️Development
The KIO now administers the mines, issuing licences, collecting taxes, and providing road security. It levies an export tax averaging 35,000 yuan (about USD 4,800) per tonne. While exports to China have slumped and Beijing has applied pressure, there are signs of interest from external players: the head of the US embassy in Myanmar visited Myitkyina in August, and India has announced plans to repair the Ledo Road, which connects to Myanmar. Reports suggest that some of Myanmar’s rare earths could potentially be exported to the United States via India. China, meanwhile, has lifted restrictions on rare earth exports to India.
▪️Implications
Two main challenges confront the KIO’s stewardship of rare earth resources. The first is external: resource control may bolster its leverage with foreign powers, but trade with countries other than China will face severe logistical constraints. The second is internal: the relation between the resistance group and the community. Rare earth generation is exposing the interests and livelihoods of the local population to significant challenges.
ISP Governance Tracker
Fortune and Risk: The KIO’s Rare Earth Dilemma