The Kachin Independence Army (KIA), the armed wing of the Kachin Independence Organization (KIO), is preparing to resume rare earth mining operations in the Pangwa-Chipwi area of Kachin State, known as one of Myanmar’s rare earth hubs, according to the ethnic armed group.
The KIA/KIO has rules and policies in place for rare earth mining, said Colonel Naw Bu, the spokesperson of the group. He added that relevant leaders and departments are still negotiating the details of the planned mining operations, so no official permissions have been granted yet.
“In preparation, we are also negotiating with businessmen on how to proceed with the operations,” he said.
Pangwa, a town in Chipwi Township, was seized by the KIA in October. It is home to rare earth mines, mostly operated by Chinese businessmen. Before that, the KIA and allies took control of Chipwi town in late September.
The towns are in the territory known as Kachin State Special Region 1. In addition to the two towns, the region encompasses other mining hubs including Tsawlaw, Kanpiketi and Waingmaw.
The KIA and allied resistance forces, including the People’s Defense Force (PDF) under the civilian National Unity Government (NUG), have already seized most of the areas in Special Region 1. Kanpiketi, which is home to an official border trade post with China, is the only remaining town in the area that is still under the junta’s control.
Kachin State Special Region 1 was previously controlled by Zakhung Ting Ying, a junta-aligned militia leader and a former junior commander in the KIA.
With clashes between the KIA and the junta intensifying near the border with China, Beijing closed all border trade posts, including informal ones, with Myanmar in late October. China’s closure of border trade with Myanmar has caused shortages of goods and supplies, and prices have increased.
According to local residents, the KIA has closed border gates in Laiza, where its headquarters are located, as well as Maijayang and Pangwa, since Nov. 12.
“We like that response because it shows the KIA’s resistance to Chinese pressure,” said an activist based in Kachin who requested anonymity.
She added that due to this response, Chinese businesses in the rare earth mining sector will not be able to take any rare earth or any other natural resources from Kachin land without the consent of the KIA.
“If the KIA oversees the rare earth mining operations, the revenue it gets from taxation will go back into funding the revolution and could accelerate its success. The junta would no longer have any income from rare earth mining,” she remarked.
However, Col. Naw Bu denied that the ethnic armed group closed the gates in response to Chinese pressure.
“The KIO didn’t close the border gates. The Chinese government has also not informed us about whether they will reopen the gates. Also, when it closed the gates, they did it by themselves. There was no prior negotiation,” he said.
A report released by Global Witness, a UK-based campaign group, in May revealed an alarming expansion of heavy rare earth mining in Myanmar. It said the world’s dependence on heavy rare earths from Kachin has rapidly increased and is having devastating impacts on the local communities and environment.
The group said Myanmar is the single largest source of heavy rare earth elements globally. The resource is in demand as part of the global energy transition, and heavy rare earths are vital ingredients for permanent magnets used in electric vehicles and wind turbines, it said.
China remains the largest buyer of rare earths from Myanmar—its imports have more than doubled in the past two years. In 2021, China imported 19,500 tons (17,699 tonnes) of heavy rare earth oxides; in 2023 the amount reached 41,700 tonnes, according to the report.
Due to the massive extraction of rare earths in Chipwi without any proper environmental safeguards in place, and the excessive use of water in the mining process, landslides are frequent in the township.
