"Myanma-san Rare Earths Should Be Designated as 'Conflict Region' Minerals"

[Asia Economy Reporter Yujin Cho] There have been calls to designate rare earth elements from Myanmar as 'conflict minerals' and regulate them. This measure aims to prevent funds from flowing to the Myanmar military regime that seized power through a coup.

The UK-based anti-corruption NGO Global Witness stated on the 10th (local time), "The mining and sale of medium rare earth elements from Myanmar benefit the Myanmar military, which is responsible for widespread human rights abuses," adding, "Medium rare earth elements mined under armed conflict and sold by armed groups in Myanmar should be treated entirely as conflict minerals."

To use minerals designated as conflict minerals, companies must report to regulatory authorities. The United States and the European Union (EU) have implemented conflict mineral restrictions requiring companies using gold, tungsten, tantalum, and tin produced in the Democratic Republic of Congo, controlled by warlords during the civil war, to report to regulators.

Yadana Maung, spokesperson for the Myanmar-based human rights organization Justice for Myanmar, also stated, "Urgent measures must be taken to ensure that electric vehicle manufacturers do not use any rare earth elements mined in Myanmar."

Rare earth elements are strategic mineral resources essential for electronics and military weapons, and their demand has recently increased as they are used as key materials in electric vehicle motors. Currently, China is the largest producer of rare earth elements, but dependence on imports of Myanmar-sourced rare earth ore is also significant.

In particular, Myanmar Now, a local Myanmar media outlet, reported that about half of the medium rare earth elements China supplies to the international market are mined in Myanmar's Kachin State. The Kachin State area is controlled by the Kachin Border Guard Force (BGF) under the Myanmar military.

Myanmar Now inquired with six major global automakers about whether they use Myanmar-sourced rare earth elements. Among them, Tesla, BMW, Volkswagen, and Volvo responded that they are inspecting the origin of raw materials and require their suppliers to pledge compliance with human rights and environmental standards. The media reported that Renault and Stellantis did not respond.

However, the media explained that none of these companies mentioned whether they are examining if dysprosium produced in Myanmar is being supplied or how widely parts containing this element are used.