The governments of India and the United States are currently scouting the possibility of obtaining the rare earth reserves of Myanmar. Such a move is aimed at diversifying the supply chains of both countries for the minerals identified as critical. According to reports, the Ministry of Mines of India has already begun negotiations with the Kachin Independence Army (KIA), an influential rebel group that governs Kachin State in the northeast, to gather and transport rare earth samples. At the same time, the U.S. is considering two sets of proposals: one calls for dealing with Myanmar’s military junta, which took over in 2021, and the other for talking directly to the KIA.
Nonetheless, the situation is such that these objectives meet with harsh obstacles. The war that is still raging in Myanmar is a great threat to the plans, in addition to the risk of instability and the difficulties with transportation. Moreover, given that China has a virtual monopoly in the manufacture of rare-earth materials (over 90% of processing and refining are done by China), the situation might result in maritime conflicts and reactive antagonism from Beijing (China’s capital), the main trading partner for Myanmar.
The analysts believe that while locating new sources for rare earth is of strategic importance, the political turmoil in Myanmar and the degree of China’s hold over the situation make them acknowledge and contemplate the risks involved.
