Fuelling the Future, Poisoning the Present: Myanmar’s Rare Earth Boom

Global Witness reports a surge in unregulated heavy rare earth element (HREE) mining in Myanmar's Kachin State, driven by demand from China for the global green energy transition. The report details severe environmental degradation, including acid-contaminated waterways and soil infertility, alongside critical health issues for workers and social instability in local communities. It highlights that HREE exports to China rose from 19,500 tonnes in 2021 to 41,700 tonnes in 2023, fueling conflict by providing revenue to both the military-aligned militias and the Kachin Independence Organization (KIO). The document further traces these minerals through Chinese refineries and magnet manufacturers to major global brands like Tesla and Volkswagen, noting a lack of transparency and effective ESG oversight in the supply chain.

• Myanmar has become a critical source of heavy rare earth elements (HREE) for the global green energy transition, with exports to China increasing significantly from 19,500 tonnes in 2021 to 41,700 tonnes in 2023. This volume is more than double China's own domestic HREE production quota for the same period.
• Mining operations in Kachin State use an 'in-situ leaching' method involving toxic chemicals like ammonium sulfate and oxalic acid, which have caused severe environmental damage. Water samples from Special Region-1 show high levels of acidity and arsenic, leading to the death of livestock and the destruction of farmland and fisheries.
• The HREE trade, valued at $1.4 billion in 2023, funds armed conflict in Myanmar. Mining is controlled by both military-allied militias in Special Region-1 and the Kachin Independence Organization (KIO) in areas like Momauk Township, both of whom view the minerals as a vital revenue stream despite claims of regulation.
• HREEs from Myanmar are processed in Chinese refineries and used by magnet manufacturers such as JL Mag and ZH Mag, who supply global companies including Tesla, Volkswagen, Siemens Gamesa, and Goldwind. While some companies claim to use recycled materials, experts suggest these are often industrial scraps rather than end-of-life products, failing to reduce reliance on Myanmar's unregulated mines.
• Mining has triggered severe social crises in Kachin State, including increased drug use, violence, and the exploitation of young women for sexual services for high-earning Chinese workers. Additionally, workers suffer from chronic coughing, numbness, skin diseases, and kidney problems due to chemical exposure.

APA

Global Witness (n.d.). Fuelling the Future, Poisoning the Present: Myanmar’s Rare Earth Boom. https://globalwitness.org/my/campaigns/transition-minerals/fuelling-the-future-poisoning-the-present-myanmars-rare-earth-boom-my/

Chicago

Global Witness. Fuelling the Future, Poisoning the Present: Myanmar’s Rare Earth Boom. n.d. https://globalwitness.org/my/campaigns/transition-minerals/fuelling-the-future-poisoning-the-present-myanmars-rare-earth-boom-my/.

Wikipedia

{{cite report |author=Global Witness |title=Fuelling the Future, Poisoning the Present: Myanmar’s Rare Earth Boom |url=https://globalwitness.org/my/campaigns/transition-minerals/fuelling-the-future-poisoning-the-present-myanmars-rare-earth-boom-my/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalwitnessndfuelling, author = {{Global Witness}}, title = {{Fuelling the Future, Poisoning the Present: Myanmar’s Rare Earth Boom}}, institution = {Global Witness}, url = {https://globalwitness.org/my/campaigns/transition-minerals/fuelling-the-future-poisoning-the-present-myanmars-rare-earth-boom-my/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }