Administration Warns of Forced Labor Risk in Myanmar
The Biden administration recommends that metal importers avoid sourcing from or brokering through Myanmar-military owned or affiliated companies, "even if their supply chains appear to be completely outside" the country, so that their sourcing doesn't violate sanctions.
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In an updated business advisory, the administration discussed problems in gold mining and rare earths extraction, saying that in Myanmar, the in-situ leaching extraction method degrades the environment, and is associated with labor rights abuses. "Businesses and individuals who trade in rare earths extracted from [Myanmar] may face reputational risks from association with these harmful activities," the advisory said.
"Businesses and individuals procuring rare earth elements and products made from rare earth elements from supply chains in the [Myanmar] region, including recycled and refined products, are encouraged to conduct enhanced due diligence and to contract with reputable third parties to reduce the risks that the rare earths (potentially marketed as being of [China]-origin) originated in [Myanmar]. Businesses should not rely on unsupported assurances, but rather should request documentation of products’ origin."