China-Backed Militia Secures Rare Earth Mines in Myanmar to Tighten Mineral Grip

The Voice News: A Chinese-backed militia is now guarding newly discovered rare earth mines in Myanmar’s Shan state, marking China’s latest move to secure critical minerals amid ongoing trade tensions with the U.S., sources tell Reuters.The United Wa State Army (UWSA), Myanmar’s most powerful ethnic armed group with close ties to Beijing, is protecting the sites, where mining is being carried out by Chinese-speaking operators. These mines, located near the Thai border, are emerging as vital replacements for supply disrupted in Kachin state—another rare earth hub recently overtaken by anti-junta forces.China, which dominates global rare earth processing, is heavily dependent on Myanmar for raw materials like dysprosium and terbium, essential for producing magnets used in electric vehicles, wind turbines, and military technologies. Nearly half of China’s rare earth imports came from Myanmar in early 2025.Satellite imagery reviewed by Reuters reveals rapid development of rare earth leaching pools across Shan state. By February 2025, two major sites were operational. According to minerals analyst David Merriman, the erosion patterns and infrastructure indicate ongoing production. Shan Human Rights Foundation also confirmed the activity in a May report.Chinese companies are reportedly running the mines at significantly lower costs than in other countries—up to seven times cheaper—due to Myanmar’s lax environmental and regulatory oversight. Offices at the sites reportedly feature Chinese signage, and materials are being transported toward the Chinese border, residents said.The UWSA, with an estimated 30,000–35,000 fighters armed largely with Chinese weapons, is enforcing strict control in the area. Locals require UWSA-issued IDs to access the region, according to eyewitnesses.Analysts say this move gives Beijing a strategic edge in the global rare earth market. With Kachin operations disrupted and global demand soaring, China’s investment in Shan state strengthens its position as Washington and allies seek to reduce dependency on Chinese-controlled minerals.”This is about maintaining dominance over a critical resource,” said Neha Mukherjee of Benchmark Mineral Intelligence. “China sees these rare earths not just as commodities, but as geopolitical tools.”