India is working to obtain rare-earth samples from Myanmar with the assistance of a powerful rebel group, according to four people familiar with the matter, as it seeks alternative supplies of a strategic resource tightly controlled by China.
India’s Ministry of Mines asked state-owned and private firms to explore collecting and transporting samples from mines in northeastern Myanmar that are under the control of the Kachin Independence Army, three of the people said.
State-owned miner IREL and private firm Midwest Advanced Materials – which received government funding last year for the commercial manufacturing of rare-earth magnets – were among those involved in the discussions, the sources said.
New Delhi hopes to test the samples in domestic labs to ensure they contain sufficient levels of heavy rare earths that can be processed into magnets used in electronic vehicles and other advanced equipment, according to the people.
The ministry made the request – signalling a rare instance of Delhi engaging with a non-state actor – at an online meeting in July, according to two of the people. The meeting was attended by representatives from IREL, Midwest and at least one other company, one of the sources said.
The KIA has started gathering samples for India’s analysis, said the fourth person, who is an official with the armed group. The rebels have also agreed to assess if bulk exports to India are possible, according to the KIA official, who like the other sources spoke on condition of anonymity to discuss sensitive matters.
Details of India’s engagement with the KIA are reported by Reuters for the first time.
India’s foreign and mining ministries did not respond to Reuters’ questions. IREL and Midwest also did not return requests for comment.
A spokesperson for the KIA did not respond to calls and messages.
The Chipwe-Pangwa mining belt in Myanmar’s Kachin state, bordering China, contains the main deposits of heavy rare earths in the war-torn Southeast Asian country.
CHINESE CONTROL
Although rare earths are relatively abundant, China has near-absolute control over the technology that processes the minerals into magnets.
Beijing has sharply restricted exports of processed rare earths to major economies like India this year as it seeks to shore up geopolitical leverage amid its trade war with the United States.
Delhi has made moves to shore up supplies. Indian Prime Minister Narendra Modi said on Aug. 31 that he had discussed rare-earth mining during a meeting in China with Myanmar junta chief Min Aung Hlaing, whose forces are battling the KIA. He did not elaborate.
No deal was publicly announced and the junta did not return a request for comment.
India is also seeking to address its lack of industrial-scale facilities to process rare-earth elements to high purity levels. IREL has sought partnerships with Japanese and Korean companies to begin commercial production of rare-earth magnets, Reuters reported last month.
