CNI News
30 April 2025
There are considerations among military and political observers about the political advantage the Kachin Independence Army (KIA) has gained from its capture of the Panwa area in Chipwi Township, Kachin State, which is rich in rare earth mineral.
Sai Htay Aung, chairman of the Tai Leng (Shanni) Nationalities Development Party (TNDP), told CNI that the KIA currently has an economic advantage because it controls not only a region rich in rare earth mineral but also a region rich in jade and if the economy is strong, political change can be successfully implemented.
“KIA has an economic advantage. It has rare earth deposits. Myanmar is the third largest producer of rare earth in the world, but its contribution to the country is low. The KIA also owns jade mines. If the economy improves, it will build its power, as is the custom of armed groups. If the economy improves, it can also bring about a political change. The state doesn't get revenue from that rare earth and jade. We will have to work hard to generate tax revenue from rare earths and jade for the entire country. I see this as something the state should do either through political dialogue or through attack." said U Sai Htay Aung.
While seeing a rare earth extraction site
China is the main buyer of rare earth minerals from Myanmar. He also pointed out that although the KIA currently has occupied the rare earth mineral-producing region, China should purchase it through a government-to-government G to G system. Currently, the KIA is attempting to capture key areas throughout Kachin State and has been fighting to capture Bhamo for about four months.
Bhamo is the second capital of Kachin State after Myitkyina, where the North Command is located, and is strategically and economically important.
U Khun Sai, who is involved in the peace process, told CNI that while the KIA may be in a position to negotiate politically with China and the SAC due to the areas currently occupied by the KIA, there is a situation where China and the SAC can mutually control the KIA.
"In the current situation, KIA may have bargaining power. But it's a situation where China or the SAC can control the KIA because China can coerce the KIA while the SAC can continue to fight against the KIA." said U Khun Sai.
While seeing the KIA/PDF joint force
Currently, the Myanmar military is re-attacking the Hpakant region, a jade mining region controlled by the KIA, and military and political analysts consider that this is being done for economic reasons due to the resources.
The Myanmar Tatmadaw had to give up the Panwa region, which is rich in rare earth minerals. If it gives up the lucrative jade mining area of Hpakant, it would hurt the Myanmar Tatmadaw more.
Similarly, the KIA is expanding its military territory in Sagaing Region, which is rich in rare earth minerals, and is also working with the Arakan Army (AA), local PDFs, and other armed groups to gain access to the sea and the Indian border in Rakhine State.
