Myanmar Conflict Disrupts Global Rare Earth Supply Chain

An armed group in Myanmar, the Kachin Independence Army, has seized a key mining hub in Kachin state, disrupting the supply of rare earth oxides to China. This could affect the availability of elements crucial for clean energy and technology, with potential financial impacts on global markets.

The Kachin Independence Army (KIA), an armed group opposing Myanmar's military government, has taken control of a significant mining hub supplying rare earth oxides to China. This move is expected to disrupt shipments of the crucial elements used in clean energy and technology sectors.

Rare earth mining predominantly occurs in Kachin state near the towns of Panwa and Chipwe, adjacent to China's Yunnan province. According to spokesperson Colonel Naw Bu, the KIA seized Panwa on October 19. The group had already captured Chipwe, although this information is yet to be independently verified.

Previously, these mining sites were managed by the militia group NDA-K, which collaborated with Myanmar's junta and Chinese companies. Analysts predict potential disruptions in shipments to China, impacting global supply and prices, especially in the magnet industry, amid ongoing conflict and changing control over the areas.

(With inputs from agencies.)