The Kachin Independence Organization (KIO) said it has reached agreements with Chinese mining companies to explore ways to minimize environmental damage from rare-earth mining in Chipwi and Pang War towns under its control.
Chipwi and Pang War towns, part of Chipwi Township in Kachin State, are known for large-scale rare-earth mineral production.
“We have negotiated and reached agreements with companies to reduce harm to the ecosystem by ending reckless practices that caused environmental damage in the past. We have also committed to improving mining methods to better protect forests, rivers, and aquatic life, including the use of more advanced technologies. In addition, we have agreed to restore and rehabilitate areas that have already been mined to minimize environmental impact as much as possible,” said Colonel Naw Bu, spokesperson for the KIO.
Pang War and Chipwi were previously controlled by the junta-aligned Kachin Border Guard Force (BGF) and militia groups. In 2024, the Kachin Independence Army (KIA), the armed wing of the KIO, took over the areas and negotiated with existing Chinese mining companies to resume rare-earth mineral extraction. Nearly a year has now passed since REM mining operations resumed in the two towns under KIO rule.
Chinese mining companies that previously operated under junta-aligned groups have agreed to continue their activities under KIO governance while complying with regulations and guidelines set by the KIA, Colonel Naw Bu said.
Despite the change in authority controlling the region, miners at the sites said that there has been no significant change in the methods used for rare-earth mining. However, they added that KIO field inspection teams have started visiting the mines to monitor environmental conditions.
“Not long ago, a KIA captain came here and told us not to dig the mountains until they disappear and not to cut down forests until they’re bare. Sometimes, the KIA inspection teams don’t even enter the mining sites, and there are still cases where Chinese companies clear entire forests. But the KIO government has made it clear that this is not allowed. Back when the militias were in control, inspection teams never came at all. Now, KIA teams visit about once every month or two,” said a miner from Pang War who requested anonymity.
Some miners noted that the only difference compared to before is that Chinese companies now carefully package their waste, but there have been no other significant changes in procedures.
Colonel Naw Bu said that under KIO rule, the expansion of new mining sites and the entry of new companies in these two towns is not yet allowed. But sources on the ground reported that existing mining companies are continuing to clear new mountains and forests and expand into new mining sites.
Earlier this month, a Chinese government delegation visited Pang War Town. Colonel Naw Bu said the officials came to inspect the operations of Chinese companies and their employees, dismissing any possibility that discussions with the KIO about rare-earths had taken place.
In Chipwi and Pang War, the KIO government is not only regulating rare-earth mining but, he claimed, is also implementing policies to support education, healthcare, and infrastructure development for the benefit of local communities.
Chipwi and Pang War were captured by the KIA and allied resistance groups in late 2024, putting all rare-earth mining sites under KIO control. All rare-earth minerals mined in these two towns were exported to China.
After the junta staged the coup, between 2021 and 2024, during the period when junta-aligned militias controlled Chipwi and Pang War, rare-earth exports from Kachin State to China reached record highs.
When the KIO took control of both towns in 2025, Chinese mining companies began new rare-earth operations in areas of eastern Shan State controlled by the United Wa State Army (UWSA).
