According to informed sources, the Communist Party-backed militia is currently in control of a new rare earth mineral deposit in eastern Myanmar. The Communist regime is taking action to ensure control over these minerals, which are being used as a bargaining chip against the West.
Reports from Reuters indicate that the Communist Party has nearly monopolized the process of processing heavy rare earths into magnets, which are essential power sources for key products such as wind turbines, medical equipment, and electric vehicles. However, the Communist regime heavily relies on Myanmar for the rare earth metals and oxides needed to produce these magnets.
Chinese customs data shows that half of China’s rare earth imports in the first four months of this year came from the conflict-ridden country.
Recently, the Communist Party’s access to new reserves of minerals such as tantalum and thorium has been limited due to a major ore zone in northern Myanmar being occupied by armed groups fighting against the country’s military government, which is supported by the Communist Party.
According to two informants, Chinese miners are currently operating in the hilly region of Shan State in eastern Myanmar, extracting minerals from new ore deposits. These informants, both working in one of the mines, stated that at least 100 people are working day and night shifts to extract and process minerals using chemical substances.
Additionally, two local residents reported seeing trucks carrying goods from the mining area between Mong Hsat and Mong Yun towns in Myanmar to the Chinese border about 200 kilometers away.
Satellite images provided by commercial satellite providers, Planet Labs, and Maxar Technologies, captured by Reuters, show some mining areas, but ownership of these sites cannot be independently verified.
Four informants revealed that these mines are being operated under the protection of the United Wa State Army (UWSA), two of whom were able to identify the militia members by their uniforms.
The UWSA is one of the largest armed groups in Shan State and also controls one of the world’s largest tin mines. According to a report from the U.S. Institute of Peace, the UWSA has long-standing commercial and military connections with the Communist regime.
Patrick Meehan, a lecturer at the University of Manchester who has conducted extensive research on Myanmar’s rare earth industry and reviewed satellite images of the mining areas in Shan State, stated that these “medium to large” mining areas appear to be the first significant mining sites outside of the Kachin region in the north of the country.
“There is a whole rare earth ore belt from Kachin to Shan State, and then to parts of Laos,” he said.
The Chinese Ministry of Commerce, UWSA, and Myanmar’s military government did not respond to requests for comments from Reuters.
Rare earths have become a bargaining chip that the Communist Party uses against the United States. After U.S. President Trump restarted trade negotiations with China this year, the Communist Party tightened restrictions on the export of rare earths and magnets.
Despite seemingly approving more rare earth exports recently and Trump stating that the dispute is easing, the Communist Party’s actions have disrupted the global supply chain, as these materials are crucial for automobile manufacturers, aerospace companies, and semiconductor firms.
Data from the Shanghai Metals Market shows that in the past six months, the price of tantalum oxide has risen by over 27%, while the price of thorium oxide has fluctuated dramatically, increasing by approximately 1% during the same period.