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Sources say that the Myanmar rebel group permits export of rare earth inventories from China

Sources say that the Myanmar rebel group permits export of rare earth inventories from China

Two sources and an official statement have confirmed that a rebel group in Myanmar, which controls one of the largest rare earth zones on earth, has informed its miners it will permit shipments of rare earth to China starting Thursday.

The Kachin Independence Army (KIA), which controls the town of Panwa, and Chipwe in Kachin State is the main mining company in Myanmar.

Chinese customs data show that since the group's takeover, China has seen a sharp decline in its imports of rare-earth oxides and compounds, which have driven up prices.

In a letter sent to the miners of the region, KIA said that it would allow rare earths stockpiles to be exportable from Thursday. The tax will be 35,000 yuan per ton ($4,800).

Sources who are familiar with the situation said that the statement was sent Wednesday. The sources requested anonymity because they were not authorized to speak to media.

The KIA didn't respond to a comment request.

China is the largest importer and consumer of rare earth compounds and ores in the world. It uses them to manufacture refined rare earth and magnetic products, industries that it dominates.

Prices of terbium dioxide As imports from Myanmar dried out, the price of, which is mainly sourced in Kachin, increased by 21.9%, to 6,550 Yuan per kilogram, between late September and 24 March.

Prices have dropped 1% in the last week due to increased supply from Myanmar. $1 = 7.6631 Chinese Yuan Renminbi (Reporting and editing by Tony Munroe, Clarence Fernandez and Amy Lv in Beijing)

(source: Reuters)