CNI News

4 September 2025

In Myanmar, the rare earth mining industry is currently dominated by Chinese companies and the Chinese market. Analysts in military and political affairs are now debating which regions India might be able to enter if it were to begin rare earth mining in Myanmar.

During the Chairman of Myanmar’s State Security and Peace Commission’s trip to China, he also met with Indian Prime Minister Narendra Modi, where the two agreed to enhance bilateral cooperation in areas including rare earth mining and security.

Since the rare earth deposits along the China–Myanmar border in Kachin State are already controlled by Chinese operators, political analyst Dr. Aung Myo told CNI News that if India were to pursue rare earth mining through a government-to-government (G to G) agreement, it would most likely do so in Sagaing Region.

“Especially in the northwest part of Myanmar, which has not yet been extensively explored — the upper areas where Kachin State borders Sagaing Region. In particular, the towns and villages along the route where Japanese forces advanced through the Inpha–Kohima corridor during World War II, such as Pansaung, Mawlike, and Homalin. India could connect to those areas to explore rare earth deposits. It’s possible we don’t yet know the full extent of the reserves there. Such locations would certainly interest India. That’s why I believe this issue was discussed with Myanmar’s Acting President. If rare earths are to be transported out of Myanmar, it would be through the Inpha–Kohima and Tamu routes. Although there isn’t yet major trade between the two countries, there are strong cross-border ties between peoples — across India’s Assam, Nagaland, and Mizoram states that border Myanmar.” he said.

Rare earth mining site

Just last month, reports emerged that the U.S. is also showing interest in Myanmar’s rare earth resources. Following this, the BBC reported that India has committed to repairing and reopening the World War II “Ledo Road” (also known as the Stilwell Road), which had been used for wartime transport, so that it could again be used for trade.

That road runs from Ledo in India through the upper Sagaing Region and Kachin State in Myanmar, extending all the way to Kunming in China. It was abandoned in November 1945, after the end of the war, and remains unused today.

Although Sagaing Region borders India, Sai Htay Aung, Chairman of the Tai Leng (Shanni) Nationalities Development Party (TNDP), told CNI News that if mining were to take place in the Panwa area, it would be close to India.

While seeing rare earth and armed group

“As for which areas are possible — I’ve heard there are potential sites in Sagaing. Sagaing is very close to India. Panwa is geographically closer to China, but with improved transport routes, it could be linked to India in a single day. The Stilwell Road that was used to reach India back in the past, which already has good road infrastructure on the Indian side. Only the Myanmar side remains underdeveloped. That road is expected to be repaired again, so it’s possible that it could also be used for rare earth transport. Myanmar has quite a lot of rare earth–bearing areas. If rare earths were mined in Panwa today, it would also be close to India.” he said.

Currently, the Kachin Independence Army (KIA) controls rare earth–producing areas including Panwa, where nearly 300 rare earth mining sites are located. Before the KIA took control, Myanmar was exporting rare earths to China. According to Chinese customs data, in September 2024, 4,200 tons of rare earth were exported to China. During clashes in Chipwi and Panwa between October and December of that year, over 3,300 tons were still exported.

At present, rare earth mining operations and revenues in Kachin State remain under KIA control. Similarly, in Shan State, rare earth mining areas are controlled by the United Wa State Army (UWSA) and the National Democratic Alliance Army (NDAA).