India is reportedly working to collaborate with a powerful rebel group from Myanmar to obtain rare earth samples as it actively seeks alternative supplies of the magnets after China restricted exports.
An international news agency has quoted at least four officials familiar with the matter claiming India’s Ministry of Mines asked state-owned and private firms to explore collecting and transporting samples from mines in northeastern Myanmar that are currently under the control of the Kachin Independence Army (KIA).
The agency said state-owned miner, IREL, and private firm, Midwest Advanced Materials, which had received government funding last year for the commercial manufacturing of rare earth magnets, were among the sources involved in the discussions.
India is hoping that the samples from Myanmar that it brings to test in its domestic labs contain sufficient levels of heavy rare earths that can then be processed into magnets used in electric vehicles, wind turbines, electronics etc.
This is a rare divergence by India in its engagement with a non-state actor. The online meeting in July in which the Indian ministry made the request was attended by representatives from IREL, Midwest and one other company, said the news agency.
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The rebel group KIA is said to have started gathering samples for India’s analysis, the sources quoted an official of the armed group as saying. The rebels have also agreed to assess if bulk exports to India are possible, according to the KIA official, who said he was not allowed to speak publically on the matter.
While India too has rare earth sources, China has almost 90 per cent control over the technology that processes the minerals into magnets.
In April this year, Beijing restricted access to its exports of rare earths, putting in place specific certificates that countries were required to furnish in order to import the minerals. The Red Dragon has leveraged its rare earth sources in its trade war with the US as well.
On August 31, Prime Minister Narendra Modi said he had discussed rare earth mining during a meeting in China with Myanmar junta chief, Min Aung Hlaing, whose forces are battling the KIA. The PM did not elaborate further on this.
China liaises with KIA for rare earth supplies to Beijing, said Angshuman Choudhary, a Singapore-based independent analyst of India-Myanmar relations.
Meanwhile, a spokesperson for China’s Foreign Ministry told the news agency that while Beijing was not aware of India and KIA potentially working together, “all relevant parties in northern Myanmar appreciate and thank China for its constructive role in maintaining peace and stability in the region.”
The IREL, meanwhile, has sought partnerships with Japanese and Korean companies to begin commercial production of rare earth magnets in order to scale-up facilities to process rare earth elements.
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