China-Backed Militias Secure Control of New Rare Earth Mines in Myanmar
(UPSC Prelims – Geography, Minerals; Mains GS-II & GS-III – International Relations, Strategic Minerals, Global Trade Wars)
📍 What’s Happening?
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China-backed militia (specifically the United Wa State Army – UWSA) is protecting new rare earth mining operations in Shan State, eastern Myanmar.
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Mining resumed in the region after Kachin's major mining belt was disrupted due to conflict with Myanmar’s junta, which China supports.
⛏️ Key Minerals & Importance:
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China depends on Myanmar for heavy rare earths like:
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Dysprosium and Terbium (used in EVs, wind turbines, medical devices)
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Nearly 50% of China’s rare earth imports (early 2025) came from Myanmar.
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Price spike:
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Terbium oxide: ↑ 27% in 6 months
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Dysprosium oxide: volatile, ↑ ~1%
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🛡️ UWSA’s Role & Chinese Links:
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UWSA (United Wa State Army):
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Largest militia in Shan state
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Has long-standing military and commercial ties with China
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Also controls one of the world’s biggest tin mines
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Mines protected by UWSA are located between Mong Hsat and Mong Yun, ~200 km from China border.
Chinese Involvement & Strategy:
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At least one mine run by Chinese firm
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Output transported directly to China
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Mining model mirrors Kachin region, where entire hillsides have been damaged by unregulated leaching pools
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China’s advantage:
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Extraction in Myanmar is ~7x cheaper
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Looser regulations, lower environmental standards
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🌍 Geopolitical Implications:
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China consolidates control over critical minerals amid trade tensions with the U.S.
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Rare earths have become a bargaining chip in the U.S.–China trade war
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Global supply chains disrupted, especially in:
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Automobiles
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Aerospace
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Semiconductors
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UPSC Relevance:
Prelims:
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Locate: Shan State, Kachin, Kok River, Mong Hsat, Mong Yun
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Key minerals: Dysprosium, Terbium
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UWSA = militia with control over strategic minerals
Mains (GS-II/GS-III):
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Strategic mineral diplomacy
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Impact of militia-controlled resource zones on regional stability
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Role of China in Myanmar’s internal conflict & mining economy
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Environmental degradation vs. geopolitical gain