Unearthing the hidden costs: Myanmar's rare earth mining boom

Summary

This report presents an analysis of rare earth mining activities in Myanmar, focusing on Pang War (ပန်ဝါ )in Chipwi (ချီဖွေမြို့နယ်) Township, Kachin (ကချင်) State, and some of its surrounding areas. Using open source intelligence (OSINT) techniques, which include satellite imagery analysis, social media monitoring and cross-verification, Myanmar Witness highlights the significant expansion of mining operations between 2018 and 2024.

Key findings include the doubling of mining site areas from 260 kilometres squared (km2) to 467 km2, which could also be linked to the increased deforestation in that area. For example, Chipwi township lost 7.73 kha (thousand hectares) of tree cover between 2018 and 2023 (approximately over 10,000 football fields), representing 2.7% of its total forest area.

Additionally, these mining operations have led to further significant environmental degradation, such as increased flooding along the Irrawaddy River (tripling from 114.33 km2 to 202.88 km2 between 2019 and 2024), landslides and potential contamination of rivers and drinking water. While the precise causes remain unknown for these natural events, this sudden increase could be linked to the rise in deforestation in the Pang War region, which may have weakened ecosystems.

Furthermore, the social impact is evident through reports of protests, alleged displacement and the loss of livelihoods, which is then compounded by the involvement of armed groups like the Kachin Independence Army (KIA), which has escalated tensions and contributed to local unrest.

On top of this, the report stresses the important role OSINT plays in documenting these activities and exposing the dynamics that would otherwise be difficult due to the conflict currently taking place. The expansion of rare earth mining in Myanmar raises urgent concerns about the unregulated operations and the consequences it has on the environment and the local community.

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Introduction

Pang War is located in the mountainous northeast part of Myanmar along the Myanmar-China border. The area is surrounded by mountains, such as the Hkyaikmaw Bum, Fulu Shan and Okiang Bum. Over time, the town has become known as a significant location for rare earth mining in Myanmar, with the surrounding mountains reportedly impacted due to extensive excavation work.

Rare earth elements are a group of 17 chemically similar elements crucial for various high-tech applications, including electronics like smartphones and electric vehicles, and renewable energy technologies such as wind turbines and defence systems. In addition, as a result of the global transition towards green technologies, demand for rare earth minerals has reportedly surged, as well as the growing reliance on electronic devices. Myanmar Witness has found that following the reported rapid expansion of mining in regions like Pang War, in Kachin State, the extraction of these rare earth elements could pose significant environmental challenges.

This report will address the potential consequences of what rare earth mining operations can often lead to, such as:

Deforestation: This is where large areas of vegetation are cleared to make way for mining activities, which leads to habitat loss as well as a decline in biodiversity.
Soil degradation: The excavation process in mining disrupts soil structures, and this can result in severe erosion and reduced agricultural productivity.
Water pollution: mining activities can contaminate local water sources with toxic chemicals, affecting ecosystems and sanitary health

Since the coup in 2021, monitoring activities in conflict zones like Pang War has presented significant challenges due to restricted access and ongoing violence. However, OSINT techniques and satellite imagery have served as essential tools for overcoming some of these obstacles. Therefore, even though rare earth mining can be seen as essential for modern industries and technology advancements, this report highlights how the expansion of this type of mining has reportedly brought on numerous environmental and social challenges.

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