China has dominated the global rare earth supply chain and is now using Myanmar, a nation plagued by political instability, violence and corruption, to obtain more of these resources. Its practices are known to cause harm to locals and the environment in the process. Due to the widespread proliferation of these materials to be used in emerging technologies across the globe, Beijing also implicated the international community in its exploitation of Myanmar’s rare earth reserves.
Global Witness, an organization that works to spotlight the links between natural resource extraction and human rights abuses, highlighted the detrimental effects of this trade with China on Myanmar’s populace and ecosystem. The group revealed that this harmful practice, driven by Beijing’s need for rare earths, exacerbated many of Myanmar’s existing issues.
“It’s a really extreme example of where there is widespread destruction for these specific elements,” Ben Ayre, head of data investigations at Global Witness, said. “It takes place in the context of a really volatile region, one where there is active conflict, and the funds that are going into it are not insignificant.”
Rare earth elements are critical for the production of various advanced technologies. China processes nearly 90% of the world’s rare earths, a sector that has become highly lucrative, making them billions of dollars over the course of recent years. Historically, China met this demand through domestic mining, producing almost two-thirds of the global supply. However, the country increasingly turned to Myanmar’s extensive rare earth supply to extract these resources, which has now surpassed China’s own production.
“We’re talking in the region of 90% of all processing is happening in China, China resourcing the vast majority of its mineral supply from from Myanmar, mining operations have expanded by more than 40% across the region,” Ayre said. “The reports that we have from community members of damage to skin and to internal organs are consistent with findings, scientific studies into the effect of these chemicals on people. Governments should adopt the necessary legislation in order to ensure the human rights and the environment are protected from from this mining practice.”
The growing reliance on Myanmar’s resources transformed a national issue into a global one. Products worldwide, from smartphones to electric vehicles, depend on rare earths sourced from Myanmar. Global Witness urged companies that utilize these materials to investigate their supply chains rigorously. The organization called on these companies to ensure responsible extraction methods and to reconsider their current sourcing if they cannot confirm ethical practices.
“The burden of proof is really on any manufacturer that’s producing those products to demonstrate that they are not implicated in that supply chain,” Ayre said. “Those companies that are sourcing these elements, do the necessary due diligence in order to ensure that they know the origins of the materials that they’re putting in their products.”
