Myanmar Rare Earths: Costs and Benefits

Highlights

• Myanmar’s rare earth mining in Kachin State provides economic benefits with higher local wages.
• Unregulated mining practices are causing significant environmental damage including deforestation and water pollution.
• Resource control conflicts between military and ethnic groups like the Kachin Independence Army create regional instability.

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Myanmar’s rare earth mining industry, particularly in Kachin State, has grown rapidly, making the country a significant supplier of these essential minerals. This expansion offers economic benefits, such as job creation and increased wages for local workers, who earn about twice the national average. However, the industry also brings serious environmental problems, including deforestation, soil erosion, and water pollution, due to unregulated mining practices. Additionally, conflicts over resource control between the Myanmar military and groups like the Kachin Independence Army (KIA) have led to instability in the region.

An article (opens in a new tab) today in Eurasia Review by Naw Seng in the article highlights these issues but does not fully address the long-term health risks to local communities from environmental degradation or the potential for increased geopolitical tensions as global demand for rare earth elements rises.  What are some of the ways a potential imminent trade war between the United States and China might play out in Myanmar?

See Rare Earth Exchanges on Myanmar.