Unearthing the Cost: Rare Earth Mining in Myanmar’s War-Torn Regions

Photo – MRHZ

This report is part of ongoing research conducted by ISP-Myanmar’s China Studies. The report was produced in June 2025 by ISP-Myanmar and supported by the East West Management Institute. This work was carried out with the aid of a grant from the International Development Research Centre, Ottawa, Canada. The views expressed herein do not necessarily represent those of IDRC or its Board of Governors.

∎ Executive Summary

Over the past eight years (from 2017 to 2024), Myanmar has become China’s primary external source of rare earth minerals, with a total Myanmar export value exceeding USD 4 billion. Following the 2021 military coup, Myanmar’s exports of rare earths saw a significant surge, with USD 3.6 billion worth of rare earth minerals shipped during the post-coup period 2021-2024. This 2021-2024 post-coup surge in rare earth exports constitutes 84% of the total value of Myanmar’s rare earth exports to China across the wider 2017-2024 eight-year period. The peak year was 2023, when exports reached USD 1.4 billion, largely driven by an expansion of mining activities in conflict-affected regions, particularly in Kachin State. Satellite imagery confirms a marked rise in illegal, unregulated mining activities, involving both military-backed entities and ethnic armed organizations (EAOs), exacerbating environmental and social challenges.

A group of 17 elements is collectively known as rare earth elements. These 17 elements are generally categorized into two main groups based on their atomic weight: Light Rare Earth Elements (LREE) and Heavy Rare Earth Elements (HREE). LREEs are found more commonly and tend to be less valuable, while HREEs are rarer and typically more expensive. HREEs are especially important in the production of high-value, advanced technology products.

In Myanmar’s Kachin State, two key HREEs—Dysprosium (Dy) and Terbium (Tb)—are primarily extracted. These elements play a critical role in high-tech manufacturing, particularly in defense and military technologies, aerospace equipment, and green technologies. They are essential for the production of high-temperature-resistant permanent magnets. Over the eight year period from 2017 to 2024, roughly two-thirds of China’s annual imports of rare earth elements (mostly HREEs), by volume, originated in Myanmar. This highlights Myanmar’s significant role in supplying rare earth raw materials to China.

A geospatial analysis of mining operations in Kachin State reveals a striking increase in mining activity since the coup. In areas like Chipwi and Momauk, the number of mining sites has surged, with Chipwi alone seeing sites more than tripled from around 100 to 357 and the number of in-situ leaching collection pits rising by 150 % from 1,000 to over 2,500. Overall, mining activity has expanded by 194%, spanning 13 village tracts and covering at least 36 villages. The rapid proliferation of unregulated mining has caused severe environmental degradation, including water and air pollution, chemical contamination, and the destruction of local ecosystems. Agriculture has suffered as well, with soil contamination rendering crops unsellable to China and livestock farming collapsing due to water pollution and lead contamination.

The health and social consequences of these mining operations are equally concerning. Workers exposed to harmful chemicals, such as ammonium sulfate and oxalic acid, face serious health risks, including respiratory diseases, long-term health problems, and miscarriages among female workers. Communities near mining sites, particularly in Chipwi and Momauk, reported widespread suffering from skin diseases, cattle are found with tumors, and a lack of access to clean water. Social instability has also increased, with drug abuse, human trafficking, and gender-based violence rising in mining areas. Coercion from armed groups and mining companies has left local communities vulnerable, as they are often forced into unfavorable land deals. The absence of a formal regulatory framework has allowed exploitation and environmental damage to continue unchecked, further deepening the social and economic crisis in the region.

The situation in Kachin State underscores broader trends in rare earth mining, where environmental and social instability often go hand in hand. This highlights the urgent need for responsible mining practices that prioritize the welfare of local communities, transparency in land transactions, and stronger regulatory oversight to mitigate exploitation and social ills. Addressing these issues is essential not only for protecting the environment but also for fostering long-term peace and stability in conflict-affected regions, where the exploitation of natural resources continues to drive social and political unrest.

∎ Key Findings

(A)
Sharp Increase in Rare Earth Exports to China: Since Myanmar’s 2021 military coup, rare earth shipments to China have totaled USD 3.6 billion, accounting for 84% of Myanmar’s total rare earth exports over the past eight years (from 2017 to 2024).

(B)
Myanmar’s Dominance in China’s Rare Earth Import Supply: Between 2017 and 2024, Myanmar’s participation in China’s rare earth imports, in terms of volume, ranged annually between 60% and 87%, contributing significantly to the global rare earth supply.

(C)
Record-High Export Value in 2023: Myanmar’s rare earth exports peaked in 2023, reaching USD 1.4 billion, the highest annual figure on record.

(D)
Expansion of Mining Sites and Collection Pits since the Coup: The number of mining sites rose from 126 sites existing pre-coup to an additional 245 sites being developed between 2021 and 2024—an increase of 194.4%.

(E)
Illicit Rare Earth Trade and Lack of State Revenue: Rare earth mining has operated largely outside state legal and fiscal oversight, with no clear evidence that the state benefits from export revenues. Although companies held permits for other minerals such as lead, zinc, tin, iron, and marble, many of these licenses appear to have been used as cover for unregulated rare earth extraction, bypassing formal taxation and state budget contribution.

(F)
Severe Health Impacts on Local Communities: Affected areas have reported a sharp increase in respiratory and skin diseases among residents. Mine workers suffer from pulmonary illnesses, chronic fatigue, and other long-term health complications linked to exposure to hazardous chemicals such as ammonium sulfate and oxalic acid. In Chipwi Township, an increase in miscarriages among female workers has been attributed to environmental contamination.

(G)
Widespread Environmental Degradation: Mining operations have caused extensive environmental harm, including the contamination of water sources with chemical waste, leading to unsafe drinking and household water supplies. Mass fish deaths and livestock health issues, such as tumors, have been reported due to polluted water. Air pollution from rare earth processing activities has also caused a significant decline in crop yields and quality.

(H)
Collapse of Traditional Livelihoods: The expansion of mining activities has resulted in the loss of ancestral farmlands and severe soil contamination. Farmers now face economic hardship as contaminated crops are not accepted for export to China. Livestock farming has also collapsed due to water pollution and lead contamination.

(I)
Forced Displacements and Rising Social Tensions: Mining expansion has displaced many people from their towns and villages, triggering conflicts over land ownership, compensation disputes, and concerted pressure from armed groups. Incidents of drug abuse and sexual violence have reportedly increased in mining areas.

(J)
Lack of Transparency and Community Marginalization: Compensation processes are often opaque, and locals do not directly receive any benefits from mining profits. Initial claims that profit would be used for local community development were not followed through on. Local communities also face threats and intimidation from armed groups and private companies if they stand in the way of mining projects, with their grievances often overlooked or dismissed.

∎ Introduction

The ongoing crisis in Myanmar is a multifaceted conflict which is deeply intertwined with the environmental degradation caused by irresponsible natural resource extraction along with diminishing state control. This degradation not only exacerbates the humanitarian situation but also acts as a catalyst for further violence and instability, creating a vicious cycle of conflict and environmental destruction. The relationship between severe environmental degradation and conflict is becoming increasingly evident, for example, barren land caused by both climate change and overexploitation of natural resources, which has led to resource depletion, environmental damage and which also fuels tensions between communities and armed groups. ISP-Myanmar highlights the critical need to recognize and address the links between man-made environmental degradation and the climate–conflict nexus within the Myanmar context.

The extraction of rare earth minerals in Myanmar has surged dramatically in recent years, emerging as a critical factor driving environmental degradation, social harm, and geopolitical tension. Rare earth resources, essential to the global supply chains required for the green energy transition, have become a focal point for exploitation, particularly in conflict-affected regions. The environmental impacts of rare earth mining—exacerbated by weak regulation and oversight—are devastating local ecosystems and communities. At the same time, competition over mining areas has fueled armed conflict, intensifying both environmental and social instability.

These developments have elevated the strategic importance of Myanmar’s rare earth elements within the broader context of China’s geopolitical and geoeconomic interests. Rare earth elements (REEs)—a group of 17 atomically similar metals—are indispensable in a wide range of high-tech applications. Research by ISP-Myanmar highlights that two heavy rare earth elements in particular, Dysprosium (Dy) and Terbium (Tb), primarily extracted in Kachin State, hold significant strategic value. Both are categorized as critical minerals due to their essential role in the production of high-performance permanent magnets, which are vital for technologies such as electric vehicles (EVs), advanced defense systems, and renewable energy infrastructure. As global demand for these technologies grows, access to and control over rare earth minerals have become central concerns for states with technological and industrial agendas. For China, Myanmar’s rare earth supply serves not only as a crucial resource base but also as a strategic asset. REEs have increasingly become tools of geopolitical leverage, strengthening China’s position in international markets and negotiations, particularly amid intensifying competition among major powers. Continued reliance on Myanmar’s rare earth resources reinforces the country’s role in China’s resource security strategy and underscores the minerals’ broader influence in shaping regional power dynamics.

In Myanmar, the areas in Kachin State where rare earth minerals are extracted are heavily influenced by various armed groups with intertwined economic interests. These regions were previously dominated by the Border Guard Force (BGF), the People’s Militia, and the New Democratic Army-Kachin (NDA-K), an ally of the Myanmar military. However, following the coup, the Kachin Independence Organization/Kachin Independence Army (KIO/KIA) has become increasingly involved. Local communities opposing rare earth mining operations have been subjected to continuous arrests and threats by armed groups. Conflicts have arisen between local residents and the KIA due to ongoing rare earth mining activities. Since November 2024, Pangwa and Chipwi townships—key areas for rare earth extraction in Kachin State—have come under the control of the Kachin Independence Army (KIA). With this development, the KIA has taken full control over the rare earth mining operations in these regions. This change in control may have led to rising tensions between the KIA and local communities opposing rare earth mining. Reports indicate that civilians resisting mining operations have faced arrests and threats from armed groups. Now that the KIA fully manages these operations, conflicts over environmental degradation and local opposition are expected to persist.

∎ Methodology

This study employs a mixed-methods approach to analyze rare earth mining activities in Kachin State, combining geospatial analysis, quantitative data, and qualitative research to comprehensively understand the sector’s impacts and dynamics. Analyses of these methods are described in the following.

Geospatial Analysis

We used geospatial analysis, utilizing remote sensing and GIS tools to map and monitor mining operations. These included identifying active mining sites, documenting site quantities, and quantifying the number of open pits within mining sites. Google Earth satellite imagery was used to track the temporal changes in rare earth mining operations across Kachin State from 2013 to 2024. A mining site is defined as a location with at least one visible open pit or a cluster of open pits. It is important to acknowledge the limitations associated with the use of Google satellite imagery in this analysis. Google Earth and Google Maps often rely on composite images that are generated from multiple satellite passes taken over time. This method is primarily used to reduce cloud cover and enhance visual clarity, especially in regions with frequent cloud coverage. However, this process can result in images that do not represent a single moment in time, potentially affecting the accuracy of spatial and temporal observations. Consequently, certain features visible in the imagery may have limitations reflecting the current or actual conditions on the ground at a specific date. Therefore, these limitations should be considered when interpreting the findings based on these Google satellite imagery.

Quantitative Analysis

Our quantitative analysis focused on the economic scale and trade flows of rare earth elements (REEs). We assessed both the volume and value of Myanmar’s REE exports to China. These figures were then compared with global trade patterns, particularly against China’s total imports of REEs. Data sourced from the General Administration of Customs of China (GACC) was processed using statistical tools to identify trends and discrepancies in Myanmar’s REE exports.

Our research focused on two Townships, Chipwi and Momauk, where the number of mining sites and pits has significantly increased since the military coup. In Chipwi Township, 98% of the population are ethnic Kachin, with 21,450 residents spread across 42 village tracts and 118 villages. Nearly 86% of the population live in rural areas, and agriculture remains the primary livelihood, with 8,288 acres of farmland producing crops such as coffee, tea leaves, potatoes, walnuts, and Sichuan peppercorns. Based on the 2014 Census, at least 5,000 people reside in eight of the village tracts where mining activity has been identified by ISP-Myanmar. Momauk Township has a more diverse population, with 52% Shan and 41% Kachin. It comprises 53 village tracts and 273 villages, and has a total population of 85,772, of which 78% reside in villages, based on 2019 data from the General Administration Department of Myanmar. Agriculture is also the primary economic activity, with 44,371 acres of farmland used to grow coffee, corn, bananas, rice, sugarcane, and rubber trees. According to the 2014 Census, at least 1,200 people live in the five village tracts identified by ISP-Myanmar as containing mining sites.

Qualitative Analysis

Qualitative research provides deeper insights into the socio-economic, political, and environmental impacts of rare earth mining by engaging with key stakeholders. ISP-Myanmar conducted interviews with ethnic armed organizations (EAOs) to understand their involvement or control over mining areas, local governance impacts, and regional security concerns. Civil Society Organizations (CSOs) were consulted to explore the social and environmental implications, particularly in relation to human rights and environmental degradation. Local residents were also interviewed in order to better understand the direct impacts on their livelihoods, health, and environment.

Additionally, local stakeholders, including community leaders and environmental activists, provided critical perspectives on how mining activities are affecting local governance, resource distribution, and community well-being. Researchers who have previously reported on rare earth mining in the region also contributed their findings, adding valuable context to the ongoing investigation. This qualitative research complements the data gathered through geospatial and quantitative methods, offering a holistic view of the broader socio-political and human dimensions of rare earth mining in Kachin State. Through focused group discussions, ISP-Myanmar interviewed 18 stakeholders (see Figure 1), including local residents, civil society organizations (CSOs), and representatives of armed groups.

This report then provides a comprehensive analysis of rare earth mining in Kachin State through an integrated research framework that combines geospatial mapping, economic data analysis, and stakeholder-driven insights. We used satellite imagery to track the expansion of mining sites from 2013 to 2024, examined the scale and trade dynamics of Myanmar’s rare earth exports to China, and investigated the socio-political and environmental impacts of the rare earth mining industry through interviews with key actors, including Ethnic Armed Organizations, civil society groups, and local communities. Together, these approaches offer a nuanced understanding of how rare earth extraction intersects with conflict, governance, and regional power dynamics.

Research Limitations

This study faced some significant limitations, primarily due to security challenges and restricted access to the research area.

Security Risks, Access Restrictions and Communication Barriers : A major obstacle was the presence of armed groups, which posed substantial security risks and severely limited access to rare earth mining sites and related activities. Consequently, only a small number of local contacts were available, many of whom were reluctant to engage with researchers due to fears of possible repercussions. Only a few outspoken individuals consented to participate. To protect their safety, interviews were conducted in secure, off-site locations. Internet and phone line shutdowns in Kachin State further complicated participant recruitment and communication. Researchers were limited to interviewing individuals with access to Chinese phone networks, significantly narrowing the pool of respondents.

Limited Fieldwork and Observation : Due to these security and logistical constraints, direct field research at mining sites was severely restricted. While some residents were reachable close to mining sites, on-site visits and in-depth, on-the-ground interviews were largely impossible. This limitation reduced opportunities for firsthand observation and may have impacted the depth and accuracy of the findings.

Technology, Data and Health Assessment Constraints : The research relied on Google Earth and Google Maps for geospatial analysis of rare earth mining areas due to restricted field access. However, these tools have limitations in positional accuracy and often lack up-to-date imagery, especially in conflict-affected or remote regions. Consequently, the resulting maps may not fully capture the current on-ground situation of mining operations.

The study also faced technical limitations in evaluating the full extent of residents’ health impacts. A lack of systematic health data and scientific studies, combined with limited medical access and documentation, prevented thorough investigation of illnesses potentially linked to rare earth mining.

Future Study Directions on Rare Earth Mining

Future research on rare earth mining should prioritize overcoming the significant access and security challenges encountered in this study. The use of remote sensing or satellite technologies could enable safer and broader data collection. Systematic health studies in partnership with medical professionals are essential to thoroughly assess the health consequences faced by affected communities.
Moreover, future studies should explore sustainable and innovative extraction methods, including the recovery of rare earth elements from mine tailings, coal ash, and recycling streams, to minimize environmental harm. Investigations into the socioeconomic trade-offs between the growing global demand for rare earths—driven by renewable energy and advanced technologies—and local community well-being will be critical. Employing longitudinal and multidisciplinary approaches will further enhance understanding of the evolving impacts of rare earth mining, supporting the development of responsible mining practices that balance technological progress with environmental stewardship and social equity.

Previous studies suggested that rare earth mining was primarily concentrated in Kachin State. However, recent developments indicate that rare earth deposits may also exist in the Wa Self-Administered Region of Shan State, along the Thailand-Myanmar border. It has been reported that the mining activities in this area are affecting rivers that flow into Thailand, resulting in genetic mutations in fish as well as water pollution. In response, the Thai government has formally requested an urgent investigation into the matter. These developments suggest the need for further study of rare earth mining activities in Shan State, particularly to better understand potential cross-border environmental impacts and the expansion of extraction beyond previously known areas.

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