Trump administration in talks over intervention in Myanmar’s rare minerals

International Desk

The Trump administration has recently considered a series of proposals that could radically change long-standing US policy, with the main goal of diverting the flow of Myanmar’s vast reserves of rare earth minerals to the United States instead of China, according to Reuters reports from Washington and Bangkok.

Four reliable sources said no decision has been made and there are logistical hurdles to implementing the initiative. But if the proposals move forward, Washington may have to reach an agreement with the Kachin Independence Army (KIA), which controls the mineral-rich northern region of the country.

One of these proposals is to build an understanding with the Kachin rebels through a peace agreement with the Myanmar junta government. Another proposal advocates for the United States to establish direct relations with the Kachin forces, bypassing the junta. The United States has avoided direct talks with the military junta since the 2021 overthrow of the democratic government.

These initiatives were presented to the US administration by a US business lobbyist, a former adviser to Aung San Suu Kyi, and some close contacts with the Kachin forces. The discussions have not been made public until now.

Rare earth minerals are 17 metals that are essential for advanced technology, especially in the construction of fighter jets and weapons. The United States produces a small amount of these minerals and imports most of them, with China processing 90% of them.

This has become a strategically important issue for the Trump administration, especially as the United States seeks alternative sources to reduce China’s influence and secure supplies of this mineral.

Last week, the Trump administration lifted sanctions on several junta associates, but US officials said this did not signal a major change in US policy toward Myanmar.

Adam Castillo, a former AmCham official and head of a Myanmar-based security agency, said he has urged the administration to engage the United States in resource extraction through a bilateral agreement with the Kachin Independence Army, which would also include a role for Quad countries (India, Japan, Australia).

He also said that the Kachin forces want to get out of the Chinese-occupied market and are interested in working with the United States.

Experts, on the other hand, say the reality of transporting minerals from the remote areas of Kachin State to India is extremely difficult. Swedish author Bertil Lintner called it “absolute madness” and said, “If they want to transport minerals from the mountainous areas bordering China to India, there is only one route – which could easily fall under Chinese control.”

Myanmar’s military government, however, has shown interest in restoring ties with the United States. When Trump recently threatened to impose a 40% tariff on Myanmar’s exports, junta leader Min Aung Hlaing wrote a letter praising Trump’s “strong leadership” and requesting a tariff reduction and lifting of sanctions. He even said he would send a negotiating team to Washington.

There was no official comment from the White House, but a senior administration official told Reuters that the discussion was “out of respect for the American business community and to support President Trump’s efforts to reduce the trade deficit.”

Analysts believe that it is still uncertain whether the United States will be directly involved in the crisis in Myanmar. However, if the US’s attempt to exert influence over the mineral resources of the Kachin region is implemented, it would be a major step that could change the geopolitical landscape in Southeast Asia.