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Resource curse, great power politics and the dark side of technological progress can all be observed in one place called Burma.
Resource curse, great power politics and the dark side of technological progress can all be observed in one place called Burma.
- Resource curse :
An established term widely understood by the academic community of political economy that resources rich countries were inflicted by the extraction of those resources when political and institutional frameworks are not strong guarded.
An established term widely understood by the academic community of political economy that resources rich countries were inflicted by the extraction of those resources when political and institutional frameworks are not strong guarded.
- Great power politics:
The rivalry between superpowers to compete for resources creates a political dynamic of supply chain
The rivalry between superpowers to compete for resources creates a political dynamic of supply chain
- technological elements:
Nation states and organizations hunger for technological elements have a dark side of labor and environment safety.
Nation states and organizations hunger for technological elements have a dark side of labor and environment safety.
Rare Earth Elements that people of Kawthoolei needs to know
Rare Earth Elements that people of Kawthoolei needs to know
Published in June 2023
By Saw Lahkbaw
This World: Sawlah Photography
The strange combination of geopolitics and the high demand of rare earth in the modern economy push a fragmented country into the victim of a global supply chain. Lawless extraction of rare earth minerals in the Kachin Land that has brought environmental damages is the epitomized textbook example of resource curse – being rich in natural resources is a curse to the country if that country lacks regulatory foundation to extract those resources.
After 2021 February military coup in Naypyidaw (Myanmar), extraction businesses were rushed in for rare earth minerals in the Kachin Land.
China has long dominated the world's supply of heavy rare earths, minerals needed to build electric vehicles and wind turbines. Demand for these products is skyrocketing as we rush to meet climate goals, but there is a problem at the root of the supply chain.
The processes used to extract heavy rare earths are highly polluting, ravaging landscapes and poisoning waterways. As concerns over the environmental toll of extraction have grown in China over the past decade, more and more domestic mines have been shut down. Yet global demand is growing rapidly, and China remains the world's largest processor. [globalwitness.org]
Let's have a look at how that seemingly benign global supply change of modern economy pushes the Kachin Land into an environmental hazard.
Let's have a look at how that seemingly benign global supply change of modern economy pushes the Kachin Land into an environmental hazard.
Let's start with facts about rare earth elements.
Let's start with facts about rare earth elements.
Rare Earth Elements (REE) are 17 chemical elements, 15 of them are found in Lanthanides Series in Period Table but rarely talked about.
Rare Earth isn't rare, really.
Rare Earth isn't rare, really.
Rare Earth Elements (REE) are relatively abundant in Earth's crust, but they are not concentrated enough to be economically viable for extraction except in a few countries.
Rare Earth Elements (REE) are relatively abundant in Earth's crust, but they are not concentrated enough to be economically viable for extraction except in a few countries.
Why is rare earth vitamin of modern economy?
Why is rare earth vitamin of modern economy?
REEs are used in a variety of industrial applications, including electronics, clean energy, aerospace, automotive and defence. Manufacturing permanent magnets is the single largest and most important end use for REEs, accounting for 43% of demand in 2021. [natural-resources.canada.ca]
The Japanese call them “the seeds of technology.” The US Department of Energy calls them “technology metals.” [nationalpress.org]
Where are Rare Earth Elements used?
Where are Rare Earth Elements used?
REE are used in virtually every modern devices, machineries and optical devices. the above chart show that 62% is used as catalyst and 13% as metallurgy. With the rise of electric vehicles and the global trend to make vehicles environmental friendly, this technology minerals becomes the high global demand.
While China signal to cut export of rare earth mineral in 2019, the then U.S. President realized that it didn’t have leverage to intensify trade war. China produces and processes virtually all of rare earth elements, even U.S. has one mine, the ores were shipped to China for processing. China has strategically built up rare earth production for three decades. All expertise from productions, processing to supply chain, China has attracted business to invest in at all levels.
In 1987, then-Chinese President Deng Xiaoping famously said, “The Middle East has oil. China has rare earths.” [nationaldefensemagazine.org]
China once has proud of its resources but because of high environmental hazards from rare earth extraction, China has tightened regulations on its extraction and has closed many small-scale productions. [e360.yale.edu]
The United States is dependent on China for a range of vital materials used in everything from livestock to fighter jets, yet it hasn’t made plans in case Beijing decides to cut off those supplies. [nationalpress.org]
Who are the leading producers.
Who are the leading producers.
In 2018, the US Geological Survey designated these minerals critical to the economy and national defence.[BBC.com]
In 2019 China seriously considered to cut export of rare earth minerals in response to the U.S. President's fiery rhetoric on trade war with China [BBC.com]. But China did not actually press that trade-war button except an exchange of rhetoric and a break on full-fledge trade war cutting each other essential elements of national economy and security.
Now the U.S., Japan, EU and Australia are ramping up their production as a matter of national security.
In 2010, China reduced its rare earth export quotas by 40 percent which increased global REE prices more than sixfold within a single year.
In 2010, China reduced its rare earth export quotas by 40 percent which increased global REE prices more than sixfold within a single year.
Unregulated and illegal extraction of natural resources is common in Myanmar due to its chronic political instability. With the country experiencing the world’s longest ongoing civil war along with a recent coup, Myanmar has been an ideal site for environmental exploitation by Chinese authorities and businesses for rare earths and various other industries including jade, hydropower, timber, and wildlife trade.
Unregulated and illegal extraction of natural resources is common in Myanmar due to its chronic political instability. With the country experiencing the world’s longest ongoing civil war along with a recent coup, Myanmar has been an ideal site for environmental exploitation by Chinese authorities and businesses for rare earths and various other industries including jade, hydropower, timber, and wildlife trade.
[Source : kontinentalist.com]
Source: [globalwitness.org Myanmar Poisoned-Mountains]
In March 2022, Global Witness commissioned the remote sensing company Planet to fly a satellite over the region of northern Myanmar, the Kachin Land.
In March 2022, Global Witness commissioned the remote sensing company Planet to fly a satellite over the region of northern Myanmar, the Kachin Land.
They found over 2700 mining collection pools at almost 300 separate locations.
They found over 2700 mining collection pools at almost 300 separate locations.
Source: [globalwitness.org Myanmar Poisoned-Mountains]
There is a name for what Myanmar has become: A “sacrifice zone,” or a place that destroys itself for the good of the world.
There is a name for what Myanmar has become: A “sacrifice zone,” or a place that destroys itself for the good of the world.
The sacrifice is visible from the air, in toxic turquoise pools that dot the landscape covered by mountain jungles just a few years ago.
The sacrifice is visible from the air, in toxic turquoise pools that dot the landscape covered by mountain jungles just a few years ago.
[Source: APnews.com]
The Chinese government introduced its first industrial standards for air and water pollution in the rare earth industry in 2011, while launching crackdowns on illegal mining and selling throughout 2010.
That was about the same time that illegal rare earth mining started to take off in Myanmar, where weak environmental regulations provided a safe haven for illegal miners. Between 2016 and 2019, Myanmar’s rare earth production increased by 88 times compared with the 2011-2015 period.
It’s also about the same time that global demand for rare earth elements increased as a result of the growing consumption of high-tech devices.
[Source: Earth Journalism]
Now the so-what with Kawthoolei.
Now the so-what with Kawthoolei.
If any nation does not prepare against prevailing external forces, any resource-rich land could turn into an environmental, social, political, and economical curse.
If any nation does not prepare against prevailing external forces, any resource-rich land could turn into an environmental, social, political, and economical curse.
This article is compiled by Saw Lahkbaw.
Other than references, views in this article are those of the author.
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