Myanmar rebels disrupt China rare earth trade, sparking regional scramble

Myanmar rebels disrupt China rare earth trade, sparking regional scramble
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A view shows a rare earth mine in Kachin state, Myanmar, on December 21, 2020. (Global Witness Handout via REUTERS)
Myanmar rebels disrupt China rare earth trade, sparking regional scramble
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Updated 28 March 2025
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Myanmar rebels disrupt China rare earth trade, sparking regional scramble

Myanmar rebels disrupt China rare earth trade, sparking regional scramble
  • Ethnic army controls area accounting for nearly half of global heavy rare earths production
  • Rebels seek leverage against Beijing, which invested heavily in rare earths and supports Myanmar’s junta

BANGKOK: When armed rebels seized northern Myanmar’s rare-earths mining belt in October, they dealt a blow to the country’s embattled military junta — and wrested control of a key global resource.
By capturing sites that produce roughly half of the world’s heavy rare earths, the Kachin Independence Army (KIA) rebels have been able to throttle the supply of minerals used in wind turbines and electric vehicles, sending prices of one key element skyward.
The KIA is seeking leverage against neighboring China, which supports the junta and has invested heavily in rare earths mining in Myanmar’s Kachin state, according to two people familiar with the matter.
Chinese imports of rare earth oxides and compounds from Myanmar dropped to 311 metric tons in February, down 89 percent compared to the year-ago period, according to Chinese customs data that hasn’t been previously reported. Most of the fall came after October.
Reuters spoke to nine people with knowledge of Myanmar’s rare earths industry and its four-year civil war about turmoil in the mining belt.
One of them described the move by the KIA, which is part of a patchwork of armed groups fighting military rule, as an attempt to drive a wedge between the junta and China.
“They want to use rare earth reserves as a leverage in their negotiation with China,” said Dan Seng Lawn, executive director of the non-profit Kachinland Research Center, which studies Kachin socio-political issues.




Laborers work on a rare earth mine in Kachin state, Myanmar, on February 20, 2021. (Global Witness Handout via REUTERS)

Three of the people also detailed previously unreported interest in the sector by India, China’s regional rival, which they said in late 2024 sent officials from a state-owned rare earths mining and refining firm to Kachin.
The KIA is one of the largest and oldest ethnic militias in Myanmar. It fights for the autonomy of the Kachin minority, a mostly Christian group who have long held grievances against the Bamar Buddhist majority.
The group has imposed a hefty tax on the mostly Chinese-operated rare-earth miners working around Panwa and Chipwe towns in Kachin, according Dan Seng Lawn, whose institute is based in the state, and a Chinese mining analyst. China has been one of the staunchest international backers of Myanmar’s military since it deposed a civilian-led government in 2021 and ignited a bloody civil war. Beijing continues to see the junta as a guarantor of stability along its frontier, though the military has been ejected from most of the borderlands since a major rebel offensive in 2023.
A spokesperson for China’s Foreign Ministry said the department was not aware of the specifics of the situation in the mining belt but it continues to “actively promote peace talks and provide all possible support and assistance for the peace process in northern Myanmar.”
India’s external affairs ministry, the KIA and a junta spokesperson did not return requests for comment. Bawn Myang Co. Ltd, which the US government previously identified as an operator of mines in the area, couldn’t be reached.
PRICE SPIKE
Chinese spot prices of terbium oxide <SMM-REO-TXO>, whose supply is concentrated in Kachin, jumped 21.9 percent to 6,550 yuan per kg between late September and March 24, data from Shanghai Metals Market show. Prices of dysprosium oxide <SMM-REO-DXO>, which is also largely mined in Kachin but was in lower demand over the last six months, eased 3.2 percent to 1,665 yuan per kg during the same period. Most rare earths from Kachin are processed in China, so a protracted stalemate would have global implications.
“A prolonged shutdown would likely lead to higher, potentially more volatile rare earth prices in China, and a reshaping of market dynamics in the near term,” research firm Adamas Intelligence said in a February note.
EXPORT PLUNGE
Chinese miners started building up major operations in Kachin in the 2010s, after Beijing tightened regulations on domestic mines.
Kachin’s often unregulated mines steadily expanded after the 2021 coup with the tacit approval of the junta, according to the U.K-.based Global Witness non-profit.
But the growth came at a heavy cost, ravaging the environment and leaving Kachin’s hills pock-marked with leeching pools, according to witness accounts and satellite imagery. Since the KIA’s takeover, a 20 percent tax imposed by the rebels has made it effectively impossible for local operators to run profitable mines.
The KIA wants China to stop pushing it to set down arms against the junta and to recognize the rebels’ de facto control of the border, said Dan Seng Lawn, adding that the parties had met at least twice in recent months.
The KIA has full control of the border in areas where it operates and anti-junta groups rule most of the rest of Myanmar’s frontier with China. Beijing appeared reluctant to accept the KIA’s demands, though it risked its monopoly on Myanmar’s rare earth reserves if it doesn’t position itself pragmatically, Dan Seng Lawn said.
Reopening the minerals sector would be a major financial lifeline to the rebels: Myanmar’s heavy rare earths trade stood at around $1.4 billion in 2023, according to Global Witness. The KIA has told miners in Kachin it will now allow shipments of existing rare earth inventories to China, Reuters reported Thursday.
But to resume operations at full capacity, the KIA needs an agreement with China, home to thousands of workers with the know-how, said Singapore-based rare-earths expert Thomas Kruemmer.
“Without them, this won’t work, full stop,” he said.
India alternative?
Amid the ongoing tussle, India has attempted to deepen its influence in Kachin, with which it also shares a border, according to Dan Seng Lawn and two people familiar with Indian official thinking.
India’s state-run mining and refining firm IREL in December sent a team to Kachin to study resources there, according to one of the Indian sources, who spoke on condition of anonymity due to the sensitivity of the matter.
Indian authorities have reservations about operating in an area with armed non-state actors, but the Kachin desire to diversify away from China and New Delhi’s need for resources have pushed the two parties to talk, the Indian source said.
IREL did not return requests for comment.
An Indian delegation that included IREL also held an online meeting with the Kachins in December to discuss their interest in reopening the rare-earths sector, said Dan Seng Lawn, who attended the discussion.
They were willing to pay higher prices than China, he said.
Any India deal faces multiple obstacles, said Kruemmer and Dan Seng Lawn.
There is only skeletal infrastructure along the mountainous and sparsely populated Kachin-India frontier, making it challenging for commodities to be moved from Myanmar to the neighboring northeastern states of India. Those states are also far removed from India’s manufacturing belts in the south and west.
India also doesn’t have the ability to commercially process the heavy rare earths and transform them into magnets used by industry, according to Kruemmer and the Indian source. Some 90 percent of the world’s rare earths magnets are produced in China, which has brought the sector under tighter state control, followed by Japan.
Nevertheless, if Beijing does not recognize the “changing power dynamics,” Dan Seng Lawn said, the KIA “will have to open alternative options.”


US Treasury secretary says trade war with China is not ‘sustainable’

US Treasury secretary says trade war with China is not ‘sustainable’
Updated 49 min 12 sec ago
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US Treasury secretary says trade war with China is not ‘sustainable’

US Treasury secretary says trade war with China is not ‘sustainable’
  • Bessent also cautioned that talks between the United States and China had yet to formally start
  • “I do say China is going to be a slog in terms of the negotiations,” Bessent said

WASHINGTON: US Treasury Secretary Scott Bessent said in a Tuesday speech that the ongoing tariffs showdown against China is unsustainable and expects a “de-escalation” in the trade war between the world’s two largest economies.
But in a private speech in Washington for JPMorgan Chase, Bessent also cautioned that talks between the United States and China had yet to formally start. Trump placed import taxes of 145 percent on China, which has countered with 125 percent tariffs on US goods. Trump has placed tariffs on several dozen countries, causing the stock market to stumble and interest rates to increase on US debt as investors worry about slower economic growth and higher inflationary pressures.
Details of the speech were confirmed by two people familiar with the remarks who insisted on anonymity to discuss them.
“I do say China is going to be a slog in terms of the negotiations,” Bessent said according to a transcript obtained by The Associated Press. “Neither side thinks the status quo is sustainable.”
The S&P 500 stock index rose after Bloomberg News initially reported Bessent’s remarks.
The Trump administration has met for talks with counterparts from Japan, India, South Korea, the European Union, Canada and Mexico, among other nations. But Trump has shown no public indications that he plans to pullback his baseline 10 percent tariff, even as he has insisted he’s looking for other nations to cut their own import taxes and remove any non-tariff barriers that the administration says have hindered exports from the US
White House press secretary Karoline Leavitt told reporters Tuesday that Trump told her “we’re doing very well” regarding a “potential trade deal with China.”
China on Monday warned other countries against making trade deals with the United States that could negatively impact China.
“China firmly opposes any party reaching a deal at the expense of China’s interests,” China’s Commerce Ministry said in a statement.
Leavitt said the Trump administration has received 18 proposals from other countries for trade deals with the US, adding that “everyone involved wants to see a trade deal happen.”
The uncertainty over tariffs in the financial markets has also been amplified by Trump calling on the Federal Reserve to cut its benchmark interest rate, with the president saying he could fire Fed Chair Jerome Powell if he wanted to do so.
Leavitt said Trump believes the Fed has by holding rates steady as it awaits the impacts of tariffs “in the name of politics, rather in the name of what’s right for the American economy.”


Ukraine ready for direct talks with Russia only after ceasefire: Zelensky

Ukraine ready for direct talks with Russia only after ceasefire: Zelensky
Updated 22 April 2025
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Ukraine ready for direct talks with Russia only after ceasefire: Zelensky

Ukraine ready for direct talks with Russia only after ceasefire: Zelensky
  • “After the ceasefire, we are ready to sit down in any format,” Zelensky told journalists
  • Kyiv and its allies dismissed the truce as a public relations exercise from Putin

KYIV: Ukraine will only hold direct talks with Russia once a ceasefire is in place, its President Volodymyr Zelensky said Tuesday, as his US counterpart Donald Trump pushed for a speedy deal to end the three-year Ukraine conflict.
“After the ceasefire, we are ready to sit down in any format,” Zelensky told journalists at a briefing a day before key talks in London on a potential Ukraine settlement.
Trump, who promised on the campaign trail to strike a deal between Moscow and Kyiv in 24 hours, has failed since his return to office three months ago to wrangle concessions from Russian President Vladimir Putin to halt his troops’ offensive in Ukraine.
Trump said over the weekend that he hoped a peace deal could be struck “this week” despite no signs the two sides were anywhere close to agreeing even a ceasefire, let alone a wider long-term settlement.
Kremlin spokesman Dmitry Peskov warned Tuesday against rushing into a speedy ceasefire, telling a state TV reporter that the issue was too “complex” for a quick fix.
“It is not worth setting any rigid time frames and trying to get a settlement, a viable settlement, in a short time frame,” he said.
Kremlin aide Yuri Ushakov meanwhile told state media that US presidential envoy Steve Witkoff was expected this week in Moscow, his fourth visit to Russia since Trump took office.
Moscow’s forces occupy around a fifth of Ukrainian territory and tens of thousands of people have been killed since the war started in February 2022.
After rejecting a US-Ukrainian offer for a full and unconditional ceasefire last month, Putin announced a surprise Easter truce over the weekend.
Fighting dipped during the 30-hour period but Russia launched fresh attacks on residential areas on Monday and Tuesday, Ukrainian officials said.
Kyiv and its allies dismissed the truce as a public relations exercise from Putin.
“The Easter truce that he announced somewhat unexpectedly was a marketing operation, a charm operation aimed at preventing President Trump from becoming impatient and angry,” French Foreign Minister Jean-Noel Barrot told FranceInfo radio.
Ukraine’s allies will meet in London on Wednesday, a senior Kyiv official told AFP.
They are expected to discuss the contours of a possible deal they could all get behind.
US Secretary of State Marco Rubio will not attend the London talks due to scheduling issues, a State Department spokeswoman said, adding that US envoy for Ukraine Keith Kellogg would take part.
European leaders are scrambling to work out how to support Ukraine should Trump pull Washington’s vital military and financial backing.
Zelensky said his team’s “first priority” at the London talks would be “an unconditional ceasefire.”
He proposed to Russia on Sunday a halt of missile and drones strikes against civilian facilities for at least 30 days.
While saying he would “analyze” the idea, Putin threw doubt on it 24 hours later by accusing Kyiv of using civilian facilities for military purposes.
He held open the prospect of bilateral talks on the topic, though the Kremlin said there were no fixed plans to engage with Kyiv.
“There are no concrete plans (to talk), there is readiness from Putin to discuss this question,” Peskov said Tuesday.
“If we are talking about civilian infrastructure, then we need to understand, when is it civilian infrastructure and when is it a military target,” he added.
Russia hit a residential area in the eastern Ukrainian city of Myrnograd with drones Tuesday, killing three people and wounding two, local authorities said.
One person was reported dead and 23 wounded after two guided aerial bombs pounded the southern city of Zaporizhzhia, the region’s governor said.
Photos from Ukraine’s emergency services showed the outer walls of an apartment block blown open and a bloodied man tended to by medics on a stretcher, with bandages around his head and arms.
“One guided aerial bomb hit an infrastructure facility, another one hit a densely populated neighborhood, a residential building directly,” Zaporizhzhia Governor Ivan Fedorov said on Telegram.
Russian strikes wounded another six in the southern city of Kherson and seven in Kharkiv in the northeast, officials said.
The Russian army meanwhile claimed to have captured a village in the eastern Donetsk region, where its troops are advancing.
Russia has pressed on with a grinding advance in recent months in southern and eastern Ukraine and recaptured much of Russia’s Kursk region, parts of which Kyiv seized last year and was hoping to use as a bargaining chip.
There were no ongoing discussions on any new US aid packages with the Trump administration, Zelensky said.
In Paris last week, Rubio presented Washington’s plan for ending the conflict, though both he and Trump warned that Washington’s patience was wearing thin and could lead it to withdraw.
Many in Ukraine fear any US-brokered settlement would benefit Russia.


FACTBOX-Major militant attacks in Indian-controlled Kashmir

FACTBOX-Major militant attacks in Indian-controlled Kashmir
Updated 22 April 2025
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FACTBOX-Major militant attacks in Indian-controlled Kashmir

FACTBOX-Major militant attacks in Indian-controlled Kashmir
  • At least 20 people feared dead after suspected militants opened fire on them in Indian controlled Kashmir
  • India and Pakistan, who administer parts of Kashmir but claim it in entirety, have fought two wars over Kashmir 

NEW DELHI, April 22 : At least 20 people were feared dead after suspected militants opened fire on them in India’s Himalayan territory of Jammu and Kashmir on Tuesday, with officials saying it was one of the deadliest such attacks in recent times.

Here is a look at major attacks over the years in India’s only Muslim-majority region, where militants have fought security forces for decades.

NOVEMBER 2024

At least 11 people were injured when militants threw a grenade at security personnel in a crowded flea market in the main city of Srinagar.

OCTOBER 2024

Six migrant workers and a doctor were shot dead by militants who opened fire near a tunnel construction site. The Resistance Front (TRF) claimed responsibility.

JUNE 2024

At least nine people died and 33 were injured when a bus carrying Hindu pilgrims plunged into a deep gorge after a suspected militant attack.

MAY 2024

Suspected militants opened fire on a tourist couple from the northwestern city of Jaipur, injuring them both.

FEBRUARY 2019

At least 44 security personnel were killed after a suicide bomber rammed a car into a bus carrying Indian paramilitary police in Kashmir. The militant group Jaish-e-Mohammed (JeM) claimed responsibility.

JULY 2017

At least seven Hindu pilgrims, on their way back from the revered Amarnath shrine deep in the Himalayas, died when their bus got caught in crossfire after two militant attacks on police in the area.

SEPTEMBER 2016

At least 17 soldiers were killed as separatists armed with AK-47 assault rifles and grenades stormed an army base in Uri near the disputed border with Pakistan.


Pentagon says leak probe may lead to US prosecutions

Pentagon says leak probe may lead to US prosecutions
Updated 22 April 2025
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Pentagon says leak probe may lead to US prosecutions

Pentagon says leak probe may lead to US prosecutions
  • Hegseth left open the possibility that individuals could be exonerated
  • “We said enough is enough. We’re going to launch a leak investigation,” he said

WASHINGTON: US Defense Secretary Pete Hegseth warned on Tuesday of possible prosecutions of former senior advisers who were fired during a probe into leaks of Pentagon information to the media, saying evidence would be handed over to the Department of Justice once the investigation is completed.
Dan Caldwell, who was one of Hegseth’s top advisers, and two other senior officials were fired on Friday after being escorted out of the Pentagon. But they have denied any wrongdoing and said they have been told nothing about any alleged crimes.
Hegseth, who has come under fire for using unclassified messaging system Signal to discuss plans to attack Yemen’s Houthi group, left open the possibility that individuals could be exonerated during the investigation but played down those chances.
“If those people are exonerated, fantastic. We don’t think — based on what we understand — that it’s going to be a good day for a number of those individuals because of what was found in the investigation,” Hegseth told Fox News.
Hegseth said there had been a number of leaks that triggered the investigation, including about military options to ensure US access to the Panama Canal and Elon Musk’s visit to the Pentagon.
“We said enough is enough. We’re going to launch a leak investigation,” Hegseth said.
“We took it seriously. It led to some unfortunate places, people I have known for quite some time. But it’s not my job to protect them. It’s my job to protect national security.”
He said evidence would eventually be handed over to the Department of Justice.
“When that evidence is gathered sufficiently — and this has all happened very quickly — it will be handed over to the DOJ and those people will be prosecuted if necessary,” Hegseth said.
Caldwell had played a critical role as an adviser to Hegseth and his importance was underscored in a leaked text chain on Signal disclosed by The Atlantic last month.
In it, Hegseth named Caldwell as the best staff point of contact for the National Security Council as it prepared for the launch of strikes against the Houthis in Yemen.
On Sunday, news emerged of a second Signal chat, a disclosure that Hegseth and other officials have blamed on former Pentagon employees.
Despite growing calls from Democrats for Hegseth to resign, President Donald Trump has stood firmly by his defense secretary.
John Ullyot, who was ousted from his job as a Pentagon spokesperson after two months, said on Sunday that Hegseth’s Defense Department was in “total chaos.”
“The dysfunction is now a major distraction for the president — who deserves better from his senior leadership,” Ullyot wrote in an opinion piece in Politico.
Asked about Ullyot’s remarks, Hegseth said: “He’s misrepresented a lot of things in the press. It’s unfortunate.”


Ghana in fresh drive to woo back Sahel states to West African bloc

Ghana in fresh drive to woo back Sahel states to West African bloc
Updated 22 April 2025
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Ghana in fresh drive to woo back Sahel states to West African bloc

Ghana in fresh drive to woo back Sahel states to West African bloc
  • John Mahama: ‘The recent decision by Mali, Burkina Faso and Niger to withdraw from ECOWAS is a regrettable development’
  • Burkina Faso, Mali and Niger are led by juntas that seized power in coups between 2020 and 2023

ACCRA: Ghana’s new leader said Tuesday he initiated a fresh bid to woo back Mali, Burkina Faso and Niger to the west African bloc ECOWAS after the junta-led countries quit earlier this year.
President John Mahama said his government had appointed a special envoy to “initiate high-level conversations” with the three countries after their withdrawal from the political and economic group.
“The recent decision by Mali, Burkina Faso and Niger to withdraw from ECOWAS is a regrettable development,” said Mahama at the launch of the bloc’s 50th anniversary celebrations in Accra, Ghana’s capital.
“We must respond not with isolation or recrimination, but with understanding, dialogue and a willingness to listen and to engage,” he said.
Before him, Senegalese President Bassirou Diomaye Faye had initiated similar efforts but said earlier this month he had “done everything possible” to bring the three countries back into the bloc, to no avail.
ECOWAS earlier said it had extended invitations to the junta leaders to attend the event at Accra’s International Conference Center.
Officials acknowledged the presence of representatives of the three countries at the event, but did not specify who they were, with the junta leaders apparently having declined to attend.
Mahama, who took office in January, said he has “prioritized diplomatic re-engagement with our Sahelian neighbors.”
Burkina Faso, Mali and Niger are led by juntas that seized power in coups between 2020 and 2023 and have since turned away from former colonial power France and moved closer to Russia.
They lie in the region known as the Sahel, which stretches between the dry Sahara desert in the north and the more humid savannas to the south.
They quit ECOWAS at the beginning of the year, accusing the regional bloc of being subservient to France.
They have joined together in a bloc called the Alliance of Sahel States (AES), which was originally set up as a defense pact in 2023 but now seeks closer integration.
Each has been wracked by attacks by extremists allied with either Al-Qaeda or Daesh for a decade — violence that governments have not been able to eradicate despite previous help from French forces.
Together the three countries sprawl over an area of some 2.8 million square kilometers (1.1 million square miles) — roughly four times the size of France — in Africa’s northwest.