Highlights

• Myanmar military conducts coordinated attacks in northern Kachin State to regain control of rare earth and jade mining territories.
• Offensive targets Special Region 1, burning mining infrastructure and disrupting KIA's revenue-generating operations near the Chinese border.
• Conflict threatens global rare earth supply chains and highlights geopolitical risks in Southeast Asian mineral production.

Myanmar’s military junta has escalated operations in northern Kachin State, launching coordinated ground, air, and drone attacks aimed at retaking critical rare earth and jade mining zones held by the Kachin Independence Army (KIA). The offensive targets Special Region 1—an area rich in rare earth elements and bordering China, including Chipwi, Pangwa, and Kanpiketi, key supply routes and mining hubs near Yunnan.

Colonel Naw Bu, a KIA spokesperson reports Irrawaddy (opens in a new tab), confirmed that junta forces are advancing on Waingmaw and Hpakant townships, burning mining equipment and attacking infrastructure to cripple the KIA’s control over revenue-generating operations. Fierce battles have erupted near Lone Khin, resulting in civilian deaths and destruction of jade mining sites. The regime is also reinforcing militia groups along the northern Putao border and has allegedly arrested its regional commander for illegal mining involvement.

The renewed push underscores the junta’s strategic focus on controlling Myanmar’s lucrative rare earth exports, most of which are routed informally to China and play a vital role in global magnet supply chains. The offensive may disrupt the flow of heavy rare earths such as dysprosium and terbium, triggering ripple effects in downstream magnet manufacturing.

For investors, this conflict highlights ongoing geopolitical risks in the rare earth supply chain, particularly in Southeast Asia’s informal production corridors. China’s proximity and economic leverage in the region add further complexity. With Special Region 1 now a contested zone, the future reliability of supply from Myanmar remains in question.