Holding Companies Accountable
In our recent interview with Global Witness CEO Mike Davis, he argues that the atrocities committed in the pursuit of rare earth metals in Kachin state must not go unchecked. The profits being made by these companies, in the billions of dollars, are fueling the violence of Tatmadaw soldiers as they attack democracy protesters with Russian-made bullets. It is our moral obligation to demand higher standards from these companies and exert influence on the global supply chain. Governments must take action by preventing the import of products containing these rare earth metals unless the suppliers can prove they did not come from the destructive mines in northern Myanmar. The targeted sanctions must also be expanded to hold accountable the warlords benefiting from the exploitation of this region. Read the following excerpt to learn more about Global Witness’ report, and listen to the full interview if you’d like to hear more.
“If enough money is in it, and they’re forced to do it, they find a way.”
Host: What would it take at this point to try and reverse these effects [of rare earth metal mining] and to clean up that area?
Mike Davis: It's very difficult to be specific about that because we don't have the data. But I think you just have to stop the industry in its current form entirely before looking at whether there would be any safe way to run it in a different form, which under current conditions seems pretty unlikely.
And we think there are some things which buyers and governments internationally need to be doing because this is an area of the world where it's very hard to directly influence conditions on the ground. But these two rare earth metals are feeding this escalating global demand, they go into supply chains for products which we use. And many of us because we want to see an energy transition, aspire to use more. And that gives us responsibility and also opportunities to exert some influence.
This really starts with governments. We believe that governments internationally should be preventing companies from importing products which contain these rare earths unless the suppliers can demonstrate that they have not come from mines in this area of northern Myanmar, which are causing these very grave environmental and human rights impacts.
We also think that governments internationally should be expanding the targeted sanctions regime, which is already being used to go after members of the Myanmar junta, to go after the main protagonists, and particularly this warlord [Zahkung Ting Ying] and his cronies in Kachin State who are benefiting from it.
And there's also a significant role for companies. They're fueling the demand. They're making a lot of money through these products. They need to get control of their supply chain through what's known as due diligence, which means thorough checks all the way through so that they know where the dysprosium and the terbium goes into the permanent magnets which goes into the electric vehicle they make. Whatever it is, they know where those things come from, and in what circumstances, and with what impact.
Now companies, typically when you start a debate around this, whether it's about blood diamonds, conflict, minerals, or timber, they would throw up their hands and say, ‘It is absolutely impossible. We can't do it’. But if enough money is in it, and they're forced to do it, they find a way.
That's the challenge we're confronting now. We can't rely on companies’ goodwill. It's not because any of them would wish these impacts on people in state, but their job is to generate profit for their shareholders. So we need regulation to compel them to take this impact seriously and address them through their purchasing practice. It's the only way.