United Nations Interregional Crime and Justice Research Institute: Trends, Challenges, and Solutions in Critical Mineral-Related Crimes in Southeast Asia

List of Key Chapter Titles

1. Disclaimer and Acknowledgments
2. Foreword
3. Executive Summary
4. Introduction (Objectives and Scope, Definition of Illegal Mining and Related Crimes, Report Structure, Methodology)
5. Background (Global and Southeast Asian Critical Mineral Mining, Strategic Role, Regional Distribution, Policies and Export Bans)
6. Criminal Risks in Southeast Asia's Mining Sector (Insufficient Research, Geopolitical Complexity, Major Criminal Methods and Supply Chain Vulnerabilities)
7. Barriers and Solutions (Overall Barriers, Key Drivers, Solutions)
8. Conclusion and Future Directions
9. Appendix A: Key Priority Needs Identified at the Regional Expert-Level Workshop in December 2024
10. Appendix B: References

Document Introduction

This report, published by the United Nations Interregional Crime and Justice Research Institute (UNICRI), aims to systematically examine the severe criminal threats facing related supply chains in Southeast Asia against the backdrop of surging demand for critical minerals driven by the global energy transition and digitalization processes. The report focuses on minerals crucial for energy and digital technologies, such as nickel, rare earth elements, tin, and cobalt. It reveals how criminal activities like illegal extraction, smuggling, corruption, and environmental degradation undermine the long-term benefits of resource management in the region, posing serious challenges to governance, security, and sustainable development.

The report first outlines the global demand landscape for critical minerals and Southeast Asia's strategic position. Southeast Asia holds approximately 22% of global nickel reserves and significant rare earth and tin resources, with Indonesia, the Philippines, Myanmar, and others being major producers. However, to seize economic opportunities, countries have introduced industrial strategies and export bans. While intended to enhance control over the value chain, these measures have inadvertently created new spaces for crime. The report provides a detailed analysis of the unique characteristics of the region's mineral crime ecosystem: criminal activities are often concealed behind large-scale, ostensibly legal operations rather than entirely illegal artisanal mining; supply chains are complex and transnational; and geopolitical diversity (e.g., numerous islands, weak border controls, territorial disputes) presents significant difficulties for regulation and law enforcement. Concurrently, there is a widespread lack of research and law enforcement capacity on this issue, creating a notable knowledge and action gap.

By integrating expert interviews, case studies, and findings from a regional workshop (held in Cambodia in December 2024), the report delves into three core barriers hindering effective action. First is the widespread lack of traceability mechanisms, making it difficult to distinguish between legal and illegal mineral products and facilitating the "batch mixing" used to launder illegal minerals. Second is the inadequacy of law enforcement and legislative frameworks, with many countries lacking specialized environmental crime enforcement units and having outdated laws where penalties are severely mismatched with criminal proceeds. Third are the three major crime drivers: corruption, political instability, and insufficient protection of the rights of local and indigenous communities. The report vividly illustrates how these drivers intertwine in practice through specific cases, such as tin and nickel corruption cases in Indonesia, illegal rare earth and tin mining in Myanmar's Kachin and Wa states due to political turmoil, illegal rare earth mining in Malaysia, and nickel mining projects in the Philippines involving community rights violations.

To address these challenges, the report proposes a comprehensive solution framework emphasizing the synergy of technical, legal, and social measures. Technically, it advocates for establishing "source-forward" traceability systems using emerging technologies like blockchain applications, satellite imagery, and geochemical fingerprinting. Legally and operationally, it recommends updating legislation, increasing penalties, establishing specialized enforcement units, strengthening regional and international cooperation, and specifically focusing on integrating corruption combat and crime convergence (e.g., the link between environmental and financial crimes) into law enforcement priorities. On the social front, it emphasizes empowering local and indigenous communities to become the first line of defense against illegal mining by providing economic alternatives, strengthening land tenure security, improving Free, Prior, and Informed Consent (FPIC) procedures, and enhancing community monitoring capabilities.

This report is based on thorough desk research, 13 stakeholder interviews including with law enforcement agencies, civil society, research institutions, and international organizations, and validation from a regional expert-level workshop bringing together 30 representatives from 11 countries. It is not only an assessment of the current situation but also a roadmap for action for policymakers, law enforcement agencies, researchers, and industry leaders, aiming to guide Southeast Asian nations in developing the economic potential of critical minerals while building a more resilient, transparent, and sustainable governance system.