While China dominates global permanent magnet production, 60% of key HREEs like Dysprosium and Terbium now originate from Myanmar’s mines in Kachin State, surpassing China’s own output. Following Myanmar’s 2021 coup, mining control shifted from military-aligned militias to the Kachin Independence Organization/Army (KIO/A), embedding mineral extraction within their broader nation-building strategy.

A new study by the Shanan Foundation explores KIO/A governance over rare earth mining, noting its dual role as a revenue generator and source of conflict. While some locals benefit from mining-related jobs, others protest environmental degradation, social disruption, and opaque decision-making, exposing contradictions in KIO/A’s governance. The report situates these dynamics in broader debates on non-state governance and raises critical policy questions for international accountability mechanisms like EITI in conflict settings. It provides valuable insights into resource extraction, environmental justice, and governance in Myanmar, particularly under de facto authorities. The study also underscores the need for greater transparency and community participation in resource governance amidst rising global dependence on these critical minerals.