Armed group says it takes control of Myanmar rare earth mining hub

An equipped radical warring Myanmar's ruling subject said it has taken power of a mining hub that is simply a large supplier of uncommon world oxides to China, apt disrupting shipments of elements utilized successful cleanable vigor and different technologies.

Rare world mining successful Myanmar is concentrated successful Kachin authorities astir the towns of Panwa and Chipwe, adjacent to southwestern China's Yunnan province.

The Kachin Independence Army (KIA) took power of Panwa connected Oct. 19, spokesperson Colonel Naw Bu told Reuters connected Tuesday. It had antecedently captured Chipwe, according to section Myanmar media. Reuters was not capable to independently verify the presumption of some towns.

The KIA is focused connected managing the municipality of Panwa and has nary existent plans for uncommon earths oregon different economical issues, Naw Bu said.

He did not respond erstwhile asked whether the KIA is unfastened to moving with China connected uncommon earths.

Previously, uncommon world mining areas successful Kachin authorities were nether the power of militia radical NDA-K, which is allied with Myanmar's junta authorities and welcomed payments from Chinese companies looking to found mines.

Last year, Myanmar supplied China with astir 50,000 metric tons of uncommon world oxides (REOs) from ion-adsorption clays (IACs), eclipsing China's home IAC mining quota of 19,000 tons and making it the world's apical exporter of dense REOs, according to broker Ord Minnett.

"Rebel power of these mining sites could perchance disrupt uncommon world ore shipments into China, which person declined for 4 months consecutive owing to the monsoon play and different challenges," probe steadfast Adamas Intelligence said successful a enactment connected Monday.

China is the world's biggest user and importer of uncommon world ores and compounds, which it uses to nutrient refined uncommon world and magnets, industries it dominates.

Last month, China halted uncommon world imports from Myanmar and suspended exports of ammonium sulphate utilized to leach uncommon earths determination owed to the conflict, said Ord Minnett expert Matthew Hope.

"I expect the KIA plans to resume the REO concern provided China is prepared to judge the exports and proviso the technicians and ammonium sulphate. But I reckon it volition expect payments earlier letting the companies bash so," Hope said.

"Once the struggle passes, we expect fiscal deals with Chinese miners volition beryllium renegotiated, apt delaying restarts until early-2025," helium said, adding that prices for REOs utilized successful magnets are apt to emergence arsenic proviso tightens.