Myanmar

Rare earth exports from Myanmar’s Kachin State to China are causing severe environmental harm and health issues, warns state-run newspaper.

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Rare earth exports to China from Myanmar’s Kachin State are damaging the environment and impacting the health of locals, raising major concerns about environmental damage and human rights violations, said an article in a newspaper published by Myanmar’s information ministry.

Since 2021, mining activity has increased sharply in the country’s northernmost province, bordering China, where armed groups exert considerable influence, with Myanmar supplying 60-87 per cent of China’s rare earth imports during the past few years, according to the article.

However, unchecked mining has led to deforestation, water pollution and health risks for local communities in the province, it said, adding that some of the mining operations are linked to armed groups.

Although rare earth mining in Kachin State has generated billions in export revenue, the benefits are distributed unequally, according to the article.

“Local communities that suffer the brunt of environmental degradation receive little to no direct compensation. Their farmlands are contaminated, water sources are polluted, and traditional livelihoods are destroyed. Many residents face health issues, displacement, and social instability while lacking access to clean water, healthcare, or education,” said the article titled ‘Who Really Profits from Myanmar’s Rare Earths?’ published in The Global New Light of Myanmar.

It said that armed groups and private companies operating the mines are reaping substantial profits.

“The former impose taxes of up to $4,800 per tonne of exported rare earths, using some of the revenue for infrastructure and services in resistance-held areas. However, transparency is limited, and much of the wealth remains concentrated among elites and intermediaries,” the article said. “The Myanmar government itself gains little, as most mining is unregulated and untaxed, bypassing official channels. This creates a stark divide: while Myanmar ranks among the top global producers of rare earths, the majority of its people, especially those in mining zones, see few lasting benefits.”

Kachin State’s areas such as Chipwi and Pangwa near the China border have hundreds of mining sites that produce valuable heavy rare earths such as dysprosium and terbium, which are critical for high-tech and renewables.