Rare Earth In Myanmar: Economic Opportunity Or Environmental Costs? – Analysis

Naw Seng

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Myanmar’s rare earth mining industry sits at the intersection of short-term opportunity, environmental degradation, and geopolitical conflict, shaping the future of local communities and global rare earth supply chains.

Key takeawaysSome local communities stand to gain economically from rare earth mining, which generates jobs and raises wages for workers, who make roughly twice the national average. Risks associated with these opportunities include potential health risks from dangerous conditions at work, lack of regulatory oversight, and exploitation by foreign corporations. 

Local communities, the Myanmar military (SAC), and foreign companies, particularly from China, significantly impact the country’s rare earth mining sector. Increased conflict and instability could result from the struggle to control these valuable resources, especially between the military and the Kachin Independence Army (KIA).

Deforestation, destruction of soil, and water pollution are the major environmental problems brought on by rare earth mining’s uncontrolled nature. These effects put communities’ long-term health and nearby ecosystems at risk. Sustainable practices and efficient governance are essential to balance economic development and mitigate these issues.

1. Overview of Rare Earth Elements

The rare earth elements are divided into two groups, which are Light Rare Earth Elements (LREE-La, Ce, Pr, Nd, Sm) and Heavy Rare Earth Elements (HREE-Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu, Y). The 17 chemical elements known as rare earth elements (REEs) are essential for many high-tech devices, such as smartphones, electric cars (EVs), and renewable energy sources. Rare earth elements are necessary to produce many goods, especially in the energy and technology industries. As the world moves toward clean energy and cutting-edge technologies, the demand for rare earth elements (REEs) is predicted to circle, possibly increasing three to seven times by 2040. With more than 58% of the world’s supply, China controls most of the rare earth market, although Myanmar is making a growing contribution.