Myanmar Rebels’ Take over of Mines Leads to disruption, Surging Rare Earth Element Prices

Highlights

• Rare earth element prices surge due to conflict in Myanmar.
• Kachin Independence Army seizes major mining areas.
• China, the major importer of Myanmar’s rare earth elements, imposes trade embargo in response to the takeover.
• The ongoing guerrilla war and supply chain disruptions may exacerbate global shortages of rare earth elements.

Rare earth elements surged due to the ongoing conflict in Myanmar.  The Kachin Independence Army's usurpation of the southeast Asian nation’s rare earth mines disrupts the global supply chain, pressuring markets and consequently impacting prices.

The major importer of Myanmar REEE is China, and the world’s second largest economy just imposed a trade embargo as part of a response to the takeover.  This ongoing guerilla war and dependencies involving Myanmar REEs means shortages may be exacerbated. 

What are the primary REE mining areas in Myanmar?

They include Chipwi, Pang War, Phimaw and Hsawlaw which came under control of the Kachin Independence Army (KIA) due to recent military operations.  In fact, on Oct 18,  the KIA seized the Pang War, Myanmar’s largest, rare earth mine.  Media reports suggested that China promptly imposed trade embargo. Rare Eart Exchanges monitoring the situation ongoing.