Myanmar's critical minerals link civil war to global supply chains: Crisis Group

Myanmar's jade, tin, gold and heavy rare earth resources have become entangled in the country's civil war and the global economy, with control over them providing revenue and leverage to the military and armed groups, according to a new report by the International Crisis Group.

The report, published on 10 September, stated that the minerals are used in industries ranging from electronics and artificial intelligence to clean energy, defence and luxury goods.

Myanmar's conflicts are primarily political struggles over power, autonomy and identity rather than fights over natural resources. However, control of valuable mineral deposits has become an important source of revenue, leverage and strategic influence for both the military and its opponents, the report said.

International demand for the minerals also helps sustain local war economies, while decisions by armed groups in Myanmar's border areas can affect global commodity markets, it added.

Tin supply affected by Man Maw mine

A tin mine in northeastern Myanmar demonstrates how developments in a conflict area can affect global supplies.

The Man Maw mine, located in an enclave near the Chinese border controlled by the United Wa State Army (UWSA), was responsible for most of Myanmar's tin production at its peak. During those years, Myanmar supplied more than 90% of China's tin ore imports, making it an important source for global solder, electronics, and semiconductor supply chains.

Wa authorities announced a suspension of mining at Man Maw in April 2023, and production largely stopped in August that year. Global tin prices subsequently rose by more than 10%, while smelters warned of tighter supplies, according to the report.

Tin prices reached a record above $53,000 a tonne in January 2026 as demand increased with the growth of AI data centres. Tin, in the form of solder, is used in servers and data-centre infrastructure.

Mining at Man Maw has since resumed, but production remains below previous levels. China's tin ore imports from Myanmar increased in late 2025, and by June 2026 Myanmar had again become China's largest single supplier, accounting for 37% of its imports.

The report also stated that the 2023 suspension was officially justified as a resource audit, but interviews by Crisis Group suggested internal political disputes within the UWSA over leadership and revenue sharing also contributed to the prolonged halt.

Gold mining expands amid conflict

Gold has long been a source of income for Myanmar's government and non-state armed groups. Since the 2021 coup, worsening conflict, economic problems and rising global gold prices have contributed to increased mining in parts of central and northern Myanmar, according to the report.

Official figures put Myanmar's gold production at about 500kg, while informal production is estimated to be at least 10 times higher, giving the industry a value of close to $1 billion a year.

Gold mining also provides employment for hundreds of thousands of people. But dredging operations have led to protests by communities concerned about their livelihoods, while mining has damaged farmland and polluted waterways.

Resistance groups in the area say taxing gold extraction is one of the few ways they can obtain money for weapons and ammunition.

The report also said local regime officials have benefited by collecting bribes and informal taxes from miners in exchange for allowing their operations to continue.

Local media reported dozens of military strikes on gold-mining sites across at least eight townships over the nine months before the report was published.

Jade remains a major source of revenue

Hpakant in northern Myanmar's Kachin State is the source of much of the world's finest jade, including imperial jade. Stones worth billions of dollars move from the area towards China each year, the report stated.

The jade trade has benefited mining firms, traders and investors as well as armed actors that control extraction sites, roads and border crossings.

Fighting around Hpakant intensified after the Kachin Independence Organisation (KIO) launched a major offensive in March 2024 and captured large stretches of the Chinese border, including trade gates and rare earth mining sites.

The KIO and allied forces subsequently fought to expand control over areas linked to the jade economy, while the military counterattacked to regain roads, towns and mining areas.

Mining has continued despite the fighting. Crisis Group's analysis of satellite imagery found signs of continued extraction, including reworked pits and spoil areas, denser haul roads, new settlement clusters and fresh tailings dams.

Control over mining areas is financially important. The report said the armed group controlling an area can receive as much as one-third of mining profits as a "landowner's share".

Some profits go towards the KIO's war effort, while in military-controlled areas they typically go to local commanders, with a share passed on to senior officers.

Rare earths connect Myanmar to global industries

Myanmar has become one of the world's important sources of heavy rare earth elements, particularly dysprosium and terbium. These minerals are used in high-performance magnets for electric vehicles, wind turbines and advanced weapons systems.

By 2021, Myanmar had become China's largest source of heavy rare earth feedstock, with exports increasing from about $1.5 million in 2014 to around $780 million in 2021, according to the report.

The report said mining shifted into Myanmar after China tightened environmental controls on heavy rare earth extraction. The mining areas in Myanmar had few environmental safeguards.

After the 2021 coup, control of the deposits shifted as the conflict expanded. In late 2024, the KIO overran the main mining belt and assumed de facto control, with revenue subsequently flowing to the group rather than Naypyitaw and its proxies.

China temporarily closed its border to rare earth imports and mining-related materials after the KIO took control, but later allowed reduced flows and fully reopened the trade by late October 2025.

The report said China's dependence on these supplies gives the KIO some leverage, while also making the group vulnerable to pressure from Beijing if rare earth exports are disrupted.

The mining has also caused environmental damage. Pollution from leaching operations has affected tributaries feeding into the Mekong River system, raising concerns in Thailand and other downstream areas.

Thai authorities have recorded persistent arsenic contamination in rivers flowing from Myanmar, while regional monitoring has detected pollutants crossing into Thailand and Laos, according to the report.

Mineral demand and Myanmar's war economy

The report said the extraction of critical minerals in Myanmar's conflict areas has connected the country's civil war to international supply chains.

It said demand for these resources comes from industries including clean energy, advanced technology and defence, while the revenue generated by mining can benefit armed groups and military authorities controlling extraction areas.

The report also warned that the same supply chains supporting the clean-energy transition are increasingly relevant to defence industries. Heavy rare earths are needed for advanced weapons systems, and demand is expected to increase as Western governments seek to rebuild stocks of missiles, interceptors and other weapons systems used in recent conflicts.

Myanmar's critical mineral resources therefore have implications beyond the country's borders, while their extraction continues to affect communities and the environment in areas where armed groups and the military compete for control.