Pajau Media
3rd March, 2025
Local sources indicate that rare earth minerals extracted from the Kachin Independence Army (KIA/KIO) government-controlled regions of Pangwa and Phare are being illicitly transported to China through the Kanpaik Ti Road, utilizing a clandestine route leading to Gu Yong, China.
The rare earth minerals presently in production are being conveyed from this side of the Kanpaik Ti, a bypass road designated as No. 6, which connects to the Chinese city of Gu Yong. According to a resident of Pangwa, all trucks departing at this time are utilizing that route.
Due to the prohibition of official border crossings by both governments, smugglers are transporting goods via an illicit route from Gu Yong City, China, specifically through the unauthorized pathway of Kanpaik Ti No. 6.
Numerous existing rare earth mining operations have been compelled to cease their activities. Should they choose to recommence mining, they will be obligated to remit taxes to the KIO/KIA government. Local residents have indicated that measures will be implemented if these operations persist without fulfilling their tax obligations.
Certain rare earth mining locations have been obstructed due to the KIO government's insistence on tax payments.
“They have already remitted the tax to U Zahkung Ting Ying. They have stated that they will no longer pay taxes to the KIO government, resulting in a prohibition on rare earth mining activities. Those who have fulfilled their tax obligations are resuming their business operations,” the local resident further noted.
Local residents have indicated that, due to the requirement for rare earth mineral industries to obtain approval from both the KIA and the Chinese governments for the transportation of goods at the Pangwa Gate, it is plausible that those who evade tax may be utilizing illicit routes for their shipments.
Some rare earth mining locations in the Pangwa, Chang Ying Hku, and Phare regions are under the ownership of Chinese entrepreneurs. These individuals have already received payments to U Zahkung Ting Ying, which precludes any further payments to the KIO/KIA.
Some entrepreneurs who incurred extra tax liabilities are reportedly restarting their operations.
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