CNI News
17 March 2026
Military and political analysts told CNI News that Myanmar could face national ruin if the country’s rare earth minerals are being sold solely for financial gain.
Global superpowers and developed nations are eyeing Myanmar’s rare earths for use in high-tech manufacturing and military hardware. Myanmar is currently ranked as the third-largest producer of rare earth minerals in the world.
The Panwa and Chipwi areas in Kachin State Special Region (1) are the primary sources of these minerals. Currently, border gates and most mining sites—including Panwa—are under the control of the KIA (Kachin Independence Army). Additionally, certain armed groups in Shan State also control rare earth extraction sites.
Political analyst Sai Mein told CNI News that it is not only the Tatmadaw (military) but also Ethnic Armed Organizations (EROs) that must be cautious of China’s monopolization of rare earths and other natural resources.
"Global powers and developed countries want these rare earth minerals. According to environmental groups in Shan State, it is said that wherever there is gold in the rivers and lakes, rare earths are also present. Our country is effectively a 'Land of Gold,' but we are caught in economic infighting," Sai Mein said.
Indian Prime Minister Modi and Chinese President Xi Jinping
He further warned that due to the ongoing civil war, economically powerful nations are monopolizing extraction while the general public sees no benefit.
The China Factor: If this continues, China will dominate not just rare earths, but forests and other natural resources, leading to total influence over the country.
Policy Needs: Sai Mein emphasized that both the military and EROs need strict environmental conservation policies. Selling resources just for "quick cash" will deplete the nation's wealth, leaving nothing for the people.
U Khun Sai, a participant in the peace process, told CNI News that while rare earths may be abundant in Myanmar compared to other countries, they should not be sold off desperately to anyone willing to pay without proper bargaining.
He noted that Myanmar’s resources should command the highest market prices, but because the revenue often goes into private pockets rather than being used for national development, the country remains in a state of "begging while holding a bag of money."
"We are geographically one of the wealthiest countries in Southeast Asia, yet socially we are extremely poor. We are like a rich man's son lost on a sandbank—clutching a bag of money but with nothing to use it on, living like a beggar. This history must end," U Khun Sai stated.
Senior General Min Aung Hlaing and Indian Prime Minister Modi
The rare earth minerals found in Myanmar are of the Ionic Adsorption Clay type. This variety is easier to refine than other ores and is rich in highly valuable elements such as:
Dysprosium (Dy), Terbium (Tb), Key Statistics:
Export Volume: In 2023 alone, Myanmar exported over 50,000 tons of rare earth minerals to China, an increase of nearly 80% compared to 2022.
Trade Value: The annual trade value is approximately $1 billion USD, a massive sum for the Myanmar economy, particularly for border regions.
Because Myanmar lacks its own refinery plants, it primarily exports raw ore to China. China then processes these raw materials into high-grade elements to resell on the global market.
Analysts point out that rare earth minerals have become a "geopolitical weapon." Beyond China, neighboring India is also reportedly interested in purchasing Myanmar’s rare earths. International news reports have suggested that secret agreements may have been signed between India and the KIA.
