(K. Warner’s article from the METAL TECH NEWS on 12 November 2024.)
Myanmar REE mining halts, prices soar: Half the
world's heavy rare earth production grinds to a halt amidst civil war. Myanmar's
top exports have long been oil and natural gas, followed by fruits and
vegetables, wood, fish, clothing, and rubber. Its main export partnerships are
with China, India, Japan, South Korea, Germany, Indonesia and Hong Kong.
Today, this small country has found itself to be an
essential source of heavy rare earth elements (HREEs), vital ingredients for
the magnets used in electric vehicles and renewable energy wind turbines
worldwide.
With countries scouring their own backyards for resources, Myanmar's geological wealth has caught the eye of battery-producing world powers; as much as 50% of the global heavy rare earths supply has come from the small country's mines directly to China, controlling almost 90% of global rare earth processing, backed by 60% of global production.
Most of Myanmar's HREEs originate from Kachin,
bordering China. The state has suffered decades of civil war between the
Myanmar military and ethnic communities struggling for greater political
autonomy.
Amid the ongoing conflict, the Kachin Independence
Army managed to overrun a leading mining center in mid-October of this year, a
hub that includes production sites in Pang War, Chipwi, Phimaw and Hsawlaw,
with Chinese media reporting that mining operations have effectively been
halted.
The takeover of Myanmar's most prolific rare earth
mines has disrupted the global supply chain, with China imposing a trade
embargo in response to the seizure, further exacerbating the shortage of rare
earth minerals and driving prices up. While operations remain suspended, supply
is dwindling.
Previously, rare earth mining areas in Kachin state were under the control of government-allied militia group NDA-K, which welcomed payments from Chinese companies looking to establish mines.
According to Myanmar news sources, during military
operations, KIA the Kachin Independence Army occupied Pang War – hosting the
largest rare earth mine in Myanmar – in October. China retaliated with a trade
embargo on Myanmar, cutting off electricity and imports of essential goods
including fuel and foodstuffs. Locals said that most of the rare earth mining
had to be suspended after China's closure of the border and import ban.
Last year, Myanmar exported approximately 50,000
metric tons of rare earth oxides (REOs) from ion-adsorption clays to China,
surpassing China's domestic IAC mining quota of 19,000 tons and positioning
Myanmar as the leading global exporter of heavy REOs according to broker Ord
Minnett.
Last month, China halted rare earth imports from
Myanmar and suspended exports of ammonium sulfate used to leach rare earths
there due to the conflict. The Kachin Independence Army is expected to
"resume the REO business provided China is prepared to accept the exports
and supply the technicians and ammonium sulphate. But I reckon it will expect
payments before letting the companies do so," according to Ord Minnett
analyst Matthew Hope. "Once the conflict passes, we expect financial deals
with Chinese miners will be renegotiated, likely delaying restarts until
early-2025," Hope said.
The combination of these factors will likely lead
to a period of price consolidation shortly followed by a rise as the market
absorbs the impact of reduced supplies and potential trade restrictions.
Reports of disturbing developments around Myanmar's mostly unregulated
extraction of heavy rare earth elements may also figure into future supply and
pricing concerns.
Kachin resistance takes control of rare earth mining hub
(Staff article from the DVB on 21 October 2024.)
The Kachin Independence Army (KIA) and its allied
People’s Defense Force (PDF) took control of Pangwa, which is located along the
China-Burma border and 114 miles (183 km) northeast of the Kachin State capital
Myitkyina, on Saturday. Pangwa is the capital of the Kachin Special Region 1,
which is administered by the Kachin Border Guard Force (BGF).
Pangwa residents said that a cordon has been set up
50 meters from the border gate on Oct. 18, but that Chinese nationals have been
allowed to enter for work. “The civilians who fled the town are stuck along the
road to the China border,” an anonymous source in the KIA told DVB. Naw Bu, the
KIA spokesperson, said that Chinese authorities issued a letter stating that
all border gates would be temporarily closed.
The KIA seized the 1002 Battalion near Pangwa in
Chipwi Township from the BGF on Oct. 14. It also seized control of the mining
towns of Hsawlaw and Chipwi earlier this month. The Kachin Special Region 1 is
a hub for Burma’s lucrative rare earth mining, which was reportedly worth $1.4
billion USD last year.
(To punish KIA for capturing Chinese rare-earth mines China has shut down the border gates. As a response to China’s blockading of
Kachin border gates from the Chines side, KIA has welded-shut the Panwar border
gate and blocked the convoy of Chinese trucks trying to transport the
rare-earth minerals from Myanmar to China, and the effect has shocked the
international rare-earth markets.)
KIA takes control of Myanmar rare earth mining hub
(Staff article from the STRAITS TIMES SINGAPORE on 23 October 2024.)
An armed group fighting Myanmar's ruling military
said it has taken control of a mining hub that is a major supplier of rare
earth oxides to China, likely disrupting shipments of elements used in clean
energy and other technologies.
Rare earth mining in Myanmar is concentrated in
Kachin state around the towns of Panwa and Chipwe, adjacent to southwestern
China's Yunnan province. The Kachin Independence Army (KIA) took control of
Panwa on Oct. 19, spokesperson Colonel Naw Bu told Reuters on Tuesday. It had
previously captured Chipwe, according to local Myanmar media. Reuters was not
able to independently verify the status of both towns.
The KIA is focused on managing the town of Panwa
and has no current plans for rare earths or other economic issues, Naw Bu said.
He did not respond when asked whether the KIA is open to working with China on
rare earths.
Previously, rare earth mining areas in Kachin state
were under the control of militia group NDA-K, which is allied with Myanmar's
junta government and welcomed payments from Chinese companies looking to
establish mines.
Last year, Myanmar supplied China with about 50,000 metric tons of rare earth oxides (REOs) from ion-adsorption clays (IACs), eclipsing China's domestic IAC mining quota of 19,000 tons and making it the world's top exporter of heavy REOs, according to broker Ord Minnett.
"Rebel control of these mining sites could
potentially disrupt rare earth concentrate shipments into China, which have
declined for four months straight owing to the monsoon season and other
challenges," research firm Adamas Intelligence said in a note on Monday.
China is the world's biggest consumer and importer
of rare earth ores and compounds, which it uses to produce refined rare earth
and magnets, industries it dominates. Last month, China halted rare earth
imports from Myanmar and suspended exports of ammonium sulphate used to leach
rare earths there due to the conflict, said Ord Minnett analyst Matthew Hope.
"I expect the KIA plans to resume the REO
business provided China is prepared to accept the exports and supply the
technicians and ammonium sulphate. But I reckon it will expect payments before
letting the companies do so," Hope said.
"Once the conflict passes, we expect financial
deals with Chinese miners will be renegotiated, likely delaying restarts until
early-2025," he said, adding that prices for REOs used in magnets are
likely to rise as supply tightens.
