The Ministry of Mines requested that state-owned and private companies investigate the possibility of gathering and delivering samples from Kachin Independence Army-controlled mines in northeastern Myanmar.
As it looks for other sources of a strategically important material that China controls closely, India is attempting to get rare-earth samples from Myanmar with the help of a strong rebel group, four individuals familiar with the situation said.
India Eyes Myanmar Minerals
The Ministry of Mines requested that state-owned and private companies investigate the possibility of gathering and delivering samples from Kachin Independence Army-controlled mines in northeastern Myanmar, according to three of the persons.
According to the sources, those participating in the talks included the state-owned miner IREL and the private company Midwest Advanced Materials, which was awarded government financing last year for the commercial production of rare-earth magnets.
India Tests Rare Earths
According to the sources, New Delhi wants to examine the samples in domestic laboratories to make sure they contain enough heavy rare earth elements to be converted into magnets for use in electronic cars and other cutting-edge machinery.
According to two of the persons, the ministry made the request at an online meeting in July, marking an unusual occasion in which Delhi interacts with a non-state player. According to one of the sources, officials from IREL, Midwest, and at least one other firm attended the conference.
The fourth individual, a representative of the armed organization, said that the KIA had begun collecting samples for examination in India. According to the KIA officer, who, like the other sources, spoke on condition of anonymity to discuss sensitive subjects, the rebels have also agreed to determine if mass shipments to India are feasible.
For the first time, Reuters reports on India’s involvement with the KIA.
In response to queries from Reuters, India’s mining and foreign ministries did not comment. Midwest and IREL did not respond to demands for comment either.
There was no response to calls or texts from a KIA spokeswoman.
Chinese Management
China has almost complete control over the technology that turns rare earth materials into magnets, despite the fact that rare earths are relatively common.
In an effort to strengthen its geopolitical clout in the midst of its trade conflict with the United States, Beijing has severely curtailed its shipments of processed rare earths to large nations such as India this year.
Delhi has taken action to support its supply chain. On August 31, Indian Prime Minister Narendra Modi claimed to have met with Min Aung Hlaing, the leader of the Myanmar junta, whose troops are fighting the KIA, in China and to have discussed rare-earth mining. He did not go into detail.
India Expands Rare-Earth Capabilities
There was no public announcement of the arrangement, and the junta did not respond to a request for comment.
India is also working to overcome its deficiency of large-scale facilities for the high-purity processing of rare-earth elements. According to a Reuters story last month, IREL has looked to collaborate with Korean and Japanese businesses in order to start producing rare-earth magnets for sale.
An Indian official aware with discussions in Delhi told Reuters that India’s interest in vital minerals was not a secret when asked about the country’s involvement with the KIA. Without specifically mentioning contacts with the rebel group, the official said, “We naturally welcome commercial collaboration on a business-to-business basis for procuring rare earth materials from accessible sources internationally.”
Geopolitics Drives Rare-Earths
As Reuters previously reported, in December, IREL sent a team to Kachin state to examine resources. According to the news agency, the administration of U.S. President Donald Trump has also received suggestions for using Myanmar’s rare earth resources, including one that would include collaboration with India.
Angshuman Choudhury, an independent observer of India-Myanmar relations based in Singapore, said that China maintains a link with the KIA, which also provides Beijing with heavy rare earths.
“Why should India be left behind if China is working with the KIA to have access to rare earths?” he said. “That competitiveness shapes this outreach as well.”
Beijing was unaware of the KIA’s possible collaboration with India, according to a Chinese Foreign Ministry spokesperson who responded to Reuters’ inquiries, but “all relevant parties in northern Myanmar appreciate and thank China for its constructive role in maintaining peace and stability in the region.”
PERMANENT DEAL?
Since its founding in 1961 to protect the autonomy of Myanmar’s Kachin minority, the KIA has grown to rank among the nation’s most powerful military organizations.
The KIA became a stronghold of the opposition to the China-backed junta in 2021, after a countrywide rebellion in which the military overthrew an elected civilian administration in Myanmar.
It captured last year the Chipwe-Pangwa mining area in Kachin state, which generates the majority of the world’s supply of heavy rare earths like terbium and dysprosium, from troops associated with the junta.
China still receives the minerals from the KIA, but their relationship has soured because of the KIA’s continuous conflict with junta forces over the strategically important town of Bhamo.
Beijing has put pressure on the KIA to yield because it views the junta as a guarantee of stability in its region. In response, the militia is intensifying its interactions with India, a neighbor.
Challenges in Rare-Earth Supply
According to two persons, officials in Delhi are interested in a long-term agreement with the KIA to establish a rare earth supply channel, but they are worried about the logistical difficulties of transporting significant amounts of the material across isolated and undeveloped mountainous areas.
A road network carries minerals to neighboring China.
According to three persons with knowledge of the situation, IREL is participating in some of those negotiations but prefers a private business to handle the trip.
According to Belgium-based rare-earths specialist Nabeel Mancheri, the parties would have difficulties processing the minerals without Chinese help, even if the KIA and India could come to an agreement on transferring rare earths to India.
Theoretically, he said, “India might separate and produce valuable items if they acquire these resources.” “But scaling this up to create considerable quantities to cater to worldwide markets will take time.”