The Shan Human Rights Foundation (SHRF) reported on 28 October that rare earth and gold mining operations have rapidly expanded along the Nam Kok River in the Mong Yun area, south of Mong Hsat Township in eastern Shan State.

The projects are being operated by the China Investment Mining Company, which is backed by the Chinese government.

According to SHRF, inside sources confirmed that the rare earth mines along the Nam Kok River and the main gold mining site are under the control of the China Investment Mining Company, which also runs similar extraction projects in northern Laos.

The company is 90 percent owned by Shanghai Chijin Xiawu Metal Resources Co., Ltd., a joint venture formed in September 2022 between the state-backed Xiamen Tungsten Corporation (XTC) and China’s largest private gold producer, Chifeng Gold. The venture was established to expand rare earth mining in Laos. XTC is one of China’s leading rare earth companies, according to SHRF.

The frights group stated that the Mong Yun area, located in eastern Mong Hsat Township, is jointly controlled by the United Wa State Army (UWSA) and the Myanmar junta, meaning mining operations there require approval from both authorities.

Satellite images taken on 14 October show major changes in the area, including widespread deforestation of upstream hillsides near the gold mining zone about 30 kilometres from the Thai border. The images also reveal rapid expansion of roads and mining sites.

SHRF noted new development on both sides of the Nam Kok River, where operators are using the environmentally harmful “in-situ leaching” technique, which involves injecting large quantities of chemicals into the hillsides to extract rare earth minerals.

“The expansion of these three mining sites, despite the existing severe pollution of the Nam Kok River, is deeply concerning as it affects communities on both sides of the border,” SHRF said in its statement.

“This affects more than one million people in Thailand living along the Kok River in Chiang Mai and Chiang Rai provinces. The Nam Kok River is a tributary of the Mekong River, putting tens of millions of people along the Mekong at risk,” it added.

Thai authorities have been conducting water tests along the Kok River every two weeks since April, with results showing arsenic and lead levels exceeding safety standards.