EXCLUSIVE INTERVIEW: Trend and Implications of unregulated mining in Myanmar and latest MoUs on critical minerals between the U.S. and Asean countries

Following the current transboundary toxic contamination and pollution of heavy metals and other hazardous chemicals in the Mekong and its tributaries in the North as a result of unregulated mining upstream in Myanmar, as well as the latest cooperation through the MoUs on critical minerals between the U.S. and Asean countries, Bangkok Tribune talks to the two experts from the U.S.-based security research Stimson Center about the trend and the implications to the people and environment here as they have been conducting new research on the issue and recently visited some communities in the North to observe and assess the situation: Director of Southeast Asia Program, and Energy, Water, and Sustainability Program, Brian Eyler, and his Research Analyst, Regan Kwan

Q: Considering the trend of RE mining operations that have shifted from town to town after the degradation of the mines in Kachin State, as recently reported, do you think the mines that are operating in the Wa and Shan States, including those popping up in the Kok River Basin, as you have discovered, would follow the same pattern? And do you think they are also being driven by the same motivations of ethnic armed groups and China?

Mr. Eyler: Without effective diplomacy between Thailand, Myanmar, China, and ethnic armed groups, I am quite certain the proliferation of rare earth mining seen in Kachin State will happen in Wa and NDAA-controlled territory. The global demand for rare earths is extremely high, and the ethnic armed groups need income to keep their operations going and to govern their territory. I’m not even sure a peace deal for Myanmar would stop the proliferation of mining. 

Mr. Kwan: Using satellite imagery, we confirmed some of the earliest mines in Shan State go back as far as 2015. While a few appear to still be operational, many have been abandoned. However, starting in 2022, we see a drastic uptick in the number of new rare earth mines appearing in Shan State, and that has yet to stop. There are no indications that these mines will be operated differently from those in Kachin State. If nothing is done or changed, we can anticipate seeing more abandoned mines in the Mekong Basin. 

Q: How do you see or project the trend in the Kok and other Mekong tributaries? Similarly destructive, or not? Why or why not?

Mr. Eyler: The Kok Basin is actually the least exploited of the major tributaries of the Mekong and the Irrawaddy, with only two rare earth mines causing the entire river downstream to become unusable. So, the level of damage and contamination on other tributaries of the Mekong in Myanmar and Laos, where rare earth mining is happening, is possibly much higher than what the Kok is experiencing. This is why it’s important to act now and stop unregulated mining in Myanmar and Laos before millions of people’s livelihoods become much worse. 

Mr. Kwan: The trends may differ within the Mekong region. The appearance of mines in Laos since 2022 is concerning as it further extends where these mines could potentially impact the ecosystem and livelihoods. However, earlier this year, Laos announced a temporary suspension of the issuance of new mining licenses while it reviewed regulations and processes to improve oversight, prevent illegal activities, and protect its natural resources better. This is an opportunity for Laos to show it can manage mines within its borders that take into consideration environmental and ecological concerns.

I cannot say the same for the tributaries in Myanmar. The ongoing conflict and the increasing demand for rare earth elements make it difficult for any government, aside from possibly China, to engage with the ethnic armed groups whose territories these mines are currently located in.

Q: How do you see the role of China in those mining operations? What role or actions should China take to make the operations more responsible?

Mr. Eyler: We think all 566 rare earth mines in Myanmar and Laos are, or were, operated by Chinese mining entities, and most of them are operating in an unregulated manner. Beijing has denied involvement in the unregulated mining activities, but the methods used to mine rare earths in Myanmar and Laos are the same used in China previously, before China cracked down on rare earth mining inside its borders. People who have been to the mines all say the mines are owned and operated by Chinese entities. 

Mr. Kwan: “Responsible” is an important concept in this entire issue. China is the main, most likely only, buyer of the rare earth elements being mined in the region. As more stories and reports of harmful impacts continue to come out, especially over time, China needs to recognise it should be more responsible in where it sources its rare earth elements and how it’s done. This can include developing traceability mechanisms, along with wastewater management and mine reclamation requirements, that hold miners accountable for how they operate.

 Q: How do you see the role of China in helping to solve the impacts downstream?

Mr. Kwan: Although China claims it has no influence over mines in Myanmar, it is the sole buyer of the rare earth elements. China, through its state-owned enterprises, could play a bigger role by demanding more responsible and transparent mining operations from its suppliers in Myanmar. 

The domestic mining industry in China used to be as environmentally damaging and dangerous to nearby communities as what we think is happening now in Myanmar. Through crackdowns on illegal mines, passage of stricter environmental regulations, and industry consolidation, China was able to lessen the impacts of these domestic mines, but that took over a decade to do. 

China has the experts who best understand the health and environmental impacts of these mines; they could do more by opening up dialogues between Chinese and Southeast Asian experts and researchers and sharing best practices.

Q: What do you think about the role or actions of the Thai government?

Mr. Eyler: Affected people in Tha Ton, Chiang Mai, and Chiang Rai provinces still haven’t received relief from the Thai government. There are villages that will run out of drinking water in the coming dry season because they typically source their drinking water from the Kok River. 

The Thai government simply hasn’t provided adequate information to affected people about the levels of exposure and contamination in the Kok and Sai-Ruak River system. People do not know what is safe to eat or drink. It’s a desperate situation ready for the Thai government to do more. 

Mr. Kwan: I think it’s concerning that the Thai government signed an agreement to expand its role in the critical minerals supply chain when some of its own citizens are facing what they would describe as an existential crisis. What kind of message does that send to the people in Chiang Rai and Chiang Mai provinces?

Q: What role or actions can regional orgs like the MRC take to help address or resolve the issue? Other regional frameworks like MLC? Would it work? Asean?

Mr. Eyler: The scale of the problem is huge and not limited to the impacts in Chiang Mai and Chiang Rai. There are hundreds of unregulated rare earth mines in Myanmar, where very little, if anything, is being done to mitigate the effects that polluted rivers are bringing to people there. While the MRC has no purview over Myanmar, the Lao PDR is a member of the 1995 Mekong Agreement, which sadly discusses little about mining impacts.

The MRC should set up a transboundary monitoring system for rare earth toxins on the mainstream and tributaries of the Mekong. I believe the MRC has a mandate to let the public know how safe or unsafe the rivers of the Mekong are for various uses. 

Q: How do you see or project the success of the countries or regional bodies in addressing the impacts downstream at present?

Mr. Eyler: Currently, very little has been done. The MRC is pledging more action. But importantly, the governments of the Mekong at the national and subnational level should be acting without hesitation to address this issue, which could literally kill tens of thousands of people if not more and ruin local economies and ecosystems.

Q: Considering the latest MoU concerning the cooperation between the U.S. and Thailand in diversifying the global supply chains of the critical minerals and rare earths, what strategy is the U.S taking in signing this MoU?

Mr. Kwan: Big picture, the U.S. aims to untether its critical minerals supply chain from China. The Thai MoU was preceded by an earlier agreement between the U.S. and Australia, signed during the ASEAN Summit alongside agreements with Malaysia and Cambodia, and shortly followed by Japan. As the U.S. begins to invest more into supply chain diversification, domestically and internationally, it will continue to look for partners that have the potential to mine and/or refine critical minerals.

Presently, Thailand’s rare earth industry is based solely on a refining facility in Nakhon Ratchasima, but its minerals are imported from China, and there is very little indication that Thailand has substantial reserves within its borders. In this case, the U.S. may see Thailand as a regional hub through its refining capabilities and the domestic manufacturing sector that requires critical minerals.

Mr. Eyler: I think the U.S. strategy is still coming together. But it’s incumbent on the U.S. or other challengers to China’s approach to show how their mining practices will be more responsible and more transparent. Otherwise, this new action by the U.S. could be equally, if not more, devastating than what China is doing. 

Q: How do you think this will affect the issue in the area at the moment, either on the supply side, the demand side, as well as the impacts downstream?

Mr. Kwan: I don’t think there will be much immediate effect on the supply or demand side. Building up the industry in the region beyond current mining in Myanmar, Laos, Malaysia, and, someday, Vietnam will take years. On the other hand, I think the American and broader Western attention to the region may also bring the ongoing concerns in Myanmar and northern Thailand to a wider audience.

As consumers, we should understand where the components that make up everyday electronics, like smartphones, EVs, and televisions, come from and what their impacts are.

Q: How will this affect the geopolitics between the U.S and China here, and what role or action should the U.S take to limit the tensions from arising here as a result?

Mr. Kwan: Taking into context the one-year suspension of China’s export control on rare earths, the agreement with Thailand, along with Australia, Malaysia, Cambodia, and Japan, seems to amount to very little. China remains by far the dominant producer with the largest reserves of rare earth. It will take years, if not decades, for the U.S. to be able to diversify its supply chains to the extent it can decouple from China, and China knows this.

To limit tensions, the U.S. could engage with its new agreement partners on looking for alternative methods to attaining rare earths, including e-waste recycling and recovery, and emerging, less harmful forms of mining like bioleaching. Sharing different options and methods provides governments and businesses with the opportunity to produce rare earths more responsibly amid growing global demands.

Q: How should we best address the current problems downstream? Where to start?

Mr. Eyler: Thailand needs to start with finding a way to stop the unregulated mining in Myanmar and prevent these operations from growing. The future of Chiang Rai province is at stake, and some are calling it a national security concern.

I do not think the discussed plans to build dams across the Kok River will do much good at all and will take too long to make any difference. Eventually, the soil and sediment in the Kok River will need to be remediated and restored to their healthy nature. That effort will likely cost hundreds of millions of dollars, if not more. 

Also read: SPECIAL REPORT SERIES: The Poisoned Rivers: From gold to rare earth, unregulated mining in Myanmar poisons the Mekong and its tributaries in Northern Thailand/ PHOTO ESSAY: Living in Fear/ Concerns grow over MoU on cooperation in “critical minerals” supply chains between Thailand and the U.S.