Reuters has reported that the Kachin Independence Army (KIA) has taken control of a mining hub in Myanmar, likely disrupting shipments of rare earth oxides to China.
The armed group has seized control of the towns of Panwa and Chipwe in Kachin state, adjacent to southwestern China’s Yunnan province.
The news agency noted that rare earth mining areas in Kachin state were previously under the control of militia group NDA-K, which is allied with Myanmar’s junta government and welcomed payments from Chinese companies looking to establish mines.
Last year, Myanmar supplied China with about 50,000 metric tons of rare earth oxides (REOs) from ion-adsorption clays (IACs), eclipsing China’s domestic IAC mining quota of 19,000 tons and making it the world’s top exporter of heavy REOs, according to broker Ord Minnett.
However, research firm Adamas Intelligence said, “Rebel control of these mining sites could potentially disrupt rare earth concentrate shipments into China, which have declined for four months straight owing to the monsoon season and other challenges.”
Last month, China halted rare earth imports from Myanmar and suspended exports of ammonium sulphate used to leach rare earths there due to the conflict.
Source: Reuters