Wa army takes over Shan rare earth mines

China-backed militia sides with Tatmadaw

- NAW BETTY HAN SHOON NAING DEVJYOT GHOSHAL

A Chinese-backed militia is protecting new rare earth mines in eastern Myanmar, according to four people familiar with the matter, as Beijing moves to secure control of the minerals it is wielding as a bargaining chip in its trade war with Washington.

China has a near-monopoly over the processing of heavy rare earths into magnets that power critical goods like wind turbines, medical devices and electric vehicles. But Beijing is heavily reliant on Myanmar for the rare earth metals and oxides needed to produce them: the war-torn country was the source of nearly half those imports in the first four months of this year, Chinese customs data show. Beijing’s access to fresh stockpiles of minerals like dysprosium and terbium has been throttled recently after a major mining belt in Myanmar's north was taken over by an armed group battling the country’s junta, which Beijing supports.

Now, in the hillsides of Shan state in eastern Myanmar, Chinese miners are opening new deposits for extraction, according to two of the sources, both of whom work at one of the mines. At least 100 people are working day-to-night shifts excavating hillsides and extracting minerals using chemicals, the sources said. Two other residents of the area said they had witnessed trucks carrying material from the mines, between the towns of Mong Hsat and Mong Yun, toward the Chinese border some 200km away. Reuters identified some of the sites using imagery from commercial satellite providers Planet Labs and Maxar Technologies.

Business records across Myanmar are poorly maintained and challenging to access, and Reuters could not independently identify the ownership of the mines.

The mines operate under the protection of the United Wa State Army, according to four sources, two of whom were able to identify the uniforms of the militia members.