Can new rare earth rules really rein in Chinese miners in Kachin State?

Mizzima

The expansion of rare earth mining across Kachin State has brought growing environmental damage, land disputes, labour rights violations and harm to local residents’ livelihoods.

The Kachin Independence Organization (KIO), an ethnic armed organization whose military wing is the Kachin Independence Army (KIA), has managed rare earth mining more systematically since late 2025. But gaps remain in enforcement, environmental protection, labour rights and revenue transparency, according to Kachin researcher Seng Li.

Mizzima spoke exclusively with Seng Li about rare earth mining governance in Kachin State, KIO’s regulations, local communities’ role in decision-making, revenue from the mining sector, and the risk that extraction could expand into Shan State and other regions.

Mizzima — You have said KIO’s rare earth mining regulations have gotten stricter since late 2025. What has actually changed on the ground?

Seng Li — There have been improvements, especially since the KIO issued its administrative regulations.

For example, drug use and gambling used to be widespread social problems around mining sites. Since KIO issued the regulations, its police and administrative bodies have enforced them more effectively, and the improvement is now clearly visible.

Tax collection linked to rare earth mining has also become more transparent than before.

KIO-KIA has also assigned immigration oversight in these areas, and now manages the entry and exit of foreigners, including Chinese nationals, more effectively than before.

Mizzima — Why have you focused your research on land and environmental issues?

Seng Li — Kachin State is extremely rich in natural resources. But when resources are extracted without proper management, a great many people in Kachin State suffer the resulting environmental damage.

I myself am from Hpakant, a jade-mining region. Growing up, I witnessed the environmental damage caused by resource extraction and its impact on families’ lives. I also personally saw friends of mine lose their lives to drug use. That’s why I later prioritized land and environmental damage issues among the many problems facing Kachin State.

Mizzima — You said that even though regulations now exist, implementation remains weak. Why do you think that is?

Seng Li — The fact that regulations have been established at all can be considered progress.

I conducted a study on rare earth mining management in 2024. At that time, the governance system lacked transparency, showed excessive favouritism toward mining operators, and disregarded local communities. There were also many land disputes and losses.

But by 2025, this management system had become more organized and structured. That’s an improvement.

At the same time, some parts still aren’t being fully implemented. One reason may simply be that only about a year has passed since the regulations began.

Another factor is that KIO is also fighting battles on the front lines. Insufficient staffing and technical gaps needed to properly regulate mining are also limiting factors.

Mizzima — Are there cases of mining companies violating the regulations, or being penalized for it?

Seng Li — As far as we’ve been able to monitor, companies have generally complied well with the rules on taxes and mining-site applications.

But on the ground, we’re still seeing labour rights violations and breaches of environmental protection standards.

Looking at KIO’s response, there are still shortfalls in fully protecting workers and effectively enforcing environmental measures.

For example, a dispute broke out between operators over a mining plot in Chipwe. Regulations require that applications for rare earth mining plots include an endorsement from the local village administration committee.

When the dispute arose, KIO went back and reviewed the village committee’s position and how the operator had proceeded since first filing the application.

That can be described as progress in enforcement.

Mizzima — Regulations require mining operators to post a deposit of 500,000 yuan (approximately $74,000). Have there been cases where this deposit was seized for violating the rules?

Seng Li — I don’t yet have access to detailed information to study that closely. So how that’s being managed is something we still need to look into further.

So far, I haven’t heard of any case where the deposit was seized.

But under the mining management regulations, operators are required to post a 500,000-yuan (approximately $74,000) deposit. The rules state that if operators fail to meet their obligation to rehabilitate the site after mining, the KIO is to seize that deposit.

Mizzima — Is it known how the KIO manages the tax revenue it collects from rare earth mining, and where that money is spent?

Seng Li — We don’t know the details.

Looking at the mining regulations, we know that the KIO’s economic department manages mining permits and its tax department collects taxes in an organized way.

But there’s no public disclosure of what proportion of that revenue is spent on infrastructure, public health services, its armed forces, or other sectors. That makes it difficult for us to obtain that information as well.

Mizzima — When new mining permits are granted, do local residents have a role in the decision-making process?

Seng Li — Looking at the entire application process, the KIO’s central economic department is the body that grants final approval.

Under the regulations, three categories of operators can apply: first, foreign companies recognized by the KIO; second, local business owners; and third, local residents themselves, who can also apply for mining permits.

Applications must include an Environmental Impact Assessment (EIA) as well as the consent and endorsement of the local village administration committee.

But the final decision on whether to grant approval rests with the KIO’s central economic department.

Mizzima — India also appears to be showing more interest in Kachin State’s rare earth sector than before. What activity are you actually seeing on the ground?

Seng Li — I’ve seen more instances of the Indian side reaching out to Kachin civil society organizations.

But since authority over rare earth mining rests with the KIO, any cooperation or discussions between KIO and the Indian government are beyond our reach to observe. So that’s something I can’t speak to.

But my understanding is that India has increased its dialogue and research engagement with Kachin civil society organizations (CSOs).

Mizzima — If rare earth mining expands from Kachin State into Shan State and other regions, could the problems seen in Kachin happen there too?

Seng Li — The main problems we’re seeing in rare earth mining areas are damage to livelihoods, landslides, health problems and other social issues.

As for whether these same problems, already occurring in Kachin State, could happen in other regions too — I believe they will keep happening without proper, systematic advance planning.