Rwanda

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The Republic of Rwanda, a landlocked country in the Great Rift Valley, where the African Great lakes region and East Africa converge. Located a few degrees south of the Equator, the country is bordered by Uganda, Tanzania, Burundi, and the Democratic Republic of the Congo. Despite the challenges brought about by the pandemic and the economy falling into recession, GDP growth in Rwanda is at 3.6%, in 2021. Mining and export of mineral resources in Rwanda in recent times have proven to have huge impact on the economy, in 2019 Gold was the top export earner for Rwanda, with an estimated traded value of $471 million. The government is working hard to formalize this sector to attract international mining investment, and increase domestic mineral processing. In 2017 The Rwanda Mining and Gas and Petroleum board were established to oversee government efforts in this sector. Rwanda is home to many mineral resources; gold, and Nickel. In addition to this, the country has other precious stones such as amphibolite, granites, quartzite, volcanic rocks, clay, sand, and other rare earth elements.

Quick Facts

Tin

Primary Mineral

114,000 MT

Estimated Reserves

Undisclosed

Tax Benefits

100 ASM

Active resource businesses

Mining in Rwanda started in the early 1930s, and since then, the mining sector has undergone comprehensive reforms and is now Rwanda’s second-largest export revenue earner. In 2020 the Mining and quarrying contributed 3% of total GDP, trading over $166 million with an export total of $83 million.

Rwanda’s mineral resources include Cassiterite, Coltan, Wolfram, Peat (used for electricity generation or processed as an alternative for firewood), Gold, and Nickel. In addition to this, the country has other precious stones such as Amphibolite, Granites, Quartzite, Volcanic Rocks, Clay, Sand, and Gravel.
Rwanda produces between 8,000 and 9,000 tons of mineral compounds every year, and the amount of money depends on the market pricing dynamics.

Gold mining and export have recently emerged to have significant potential. Rwanda is among the top producers of Tantalum, producing about 9% of the world’s Tantalum used in electronics manufacturing.
In 2019 Rwanda was ranked 3rd largest exporter of Tin Ores and that same year Tin Ore was the 5th most exported product in Rwanda amounting to about $72 million, the leading destinations of Tin Ores are Thailand, United Arab Emirates Singapore and Malaysia
Rwanda is now home to two refineries of Gold and Tin, both of which can process a capacity to refine 6 tons of Gold a month, or about 220 kilograms a day from within the country and the region. In 2019 Rwanda exported Gold worth $471 million to the United Arab Emirates, Turkey reported an import of $53 million of Gold from Rwanda in 2020
Rwanda has a mineral tagging and sealing scheme, internationally recognized as a member of the iTSCi program that ensures that the minerals’ origins can be traced to avoid conflict financing, human rights abuses, or other malpractices such as bribery in mineral supply chains.
Rwanda has implement Certified Trade Chain (CTC), which establishes and implements standards for artisanal and small-scale Mining and certifies that minerals produced by mining companies and cooperatives comply with the five basic principles: Traceability, Fair working conditions, Safety, and human rights, and Community Development.

Industrial activity in 2020 contributed 1.7 percentage points to GDP growth of 10%. The National Institute of Statistics of Rwanda reports that the industrial production index increased by 68% in 2021 compared to 28.1% in 2020. The Rwandan franc devalued 5.4% on a nominal basis compared to the US dollar in 2020. In 2019 it had a 4.9% depreciation.

Rwanda was one of the countries with the best results in financing the entire physical infrastructure (i.e., private and public financing). From 2014 to 2019, Rwanda’s cumulative total infrastructure commitment surpasses all peer countries, including countries with higher per capita income than Rwanda, except Zambia, which recorded 24% of its GDP.
The pandemic will continue to limit recovery. By 2023, GDP growth is expected to be lower than the pre-pandemic average because the uncertainty of the pandemic process limits investment, travel restrictions, and fear of travel limits tourism, and the weak labor market exerts pressure on private consumption

Mining and Quarry operations in Rwanda are regulated by Law Number 58/2018 of 13/08/2018 On Mining and Quarry Operations

General principles

The general principles relating to mining and quarry operations are as follows:

All rights of ownership and control of minerals or quarry products in, under or upon any land in Rwanda are vested in the State notwithstanding personal ownership of land and other properties thereof
Mineral exploration, exploitation, processing and trading are carried out by a person who has been granted a license in accordance with this Law
Quarry operations are conducted only by a person who has been granted a licence in accordance with this Law
The competent authority may designate certain quarries for the exclusive exploitation by the Government for the purposes of carrying out projects in the public interest
The holder of a licence issued under this Law, prior to the commencement of operations, submits to the competent authority an environmental and social impact assessment approved by the relevant public organ.

Article 9 of Law 58/2018 depicts the size of Mineral Licences in Rwanda. The Mineral licence area consists of one or more contiguous blocks, and each block is reported on independently in accordance with business plan. The maximum size for each block is as follows:

Four hundred hectares (400 ha) for an exploration licence
Fifty hectares (50 ha) for a small-scale mining licence
One hundred hectares (100 ha) for a medium-scale mining licence
Four hundred hectares (400 ha) for a large-scale mining licence.

Article 10 – Applying for a Mineral Title:

An application for a mineral licence is addressed to the competent authority. Modalities and requirements for a mineral licence application are determined by regulations issued by the competent authority.

However, under Article 11, one can also obtain a mining licence through open tender where the relevant authority might call for tender to carry out exploration or exploitation of Minerals in potential mining areas.

Article 14 – Duration of Mineral Licences:

An Exploration Licence is valid for an initial period not exceeding four (4) years and under Article 15 may be renewed once for a period not exceeding four (4) years
A mining licence is valid for an initial period not exceeding fifteen (15) years and under Article 15 may be renewed more than once when considered necessary but each time not more than fifteen (15) years.

There is a minerals tax (Royalty) which is fixed as follows:

4% of the norm value for base metals and other mineral substances of that kind

6% of the norm value for precious metals of gold category and other precious metals of that kind;

6% of the gross value for precious metals of diamond category and other precious stones of that kind

Four key institutions comprise the framework for Mining in Rwanda:

MINISTRY OF NATURAL RESOURCES (MINIRENA): MINIRENA is a multisector ministry responsible for the five sectors of Lands, Mines and Geology, Water, Forestry, and the Environment. MINIRENA is responsible for the development of policies, laws, and regulation as well as coordination and supervision of all the activities in each of the five sectors. This includes Mining and quarrying as well as follow-up and evaluation.

RWANDA MINES, PETROLEUM, GAS, BOARD (RMPGB) – FORMERLY THE RWANDA NATURAL RESOURCES AUTHORITY (RNRA): In March 2017, RNRA dissolved and split into three bodies: the Rwanda Mines, Petroleum, and Gas Board (RMPGB), Rwanda Lands Authority, and the Rwanda Water and Forest Authority. The RMPGB is headed by a CEO and holds the mandate to improve mining operations and implementation of the national mining policies and strategies. It should be noted that at the time of the assessment, RNRA was the authority that led the management and promotion of natural resources composed of mines and geology, land, water, and forests. It was entrusted with supervising, monitoring, and ensuring the implementation of issues relating to the protection and promotion of natural resources in programs and all activities of all national institutions. The new RMPGB is comprised of five units: the Geological Survey, RMPGH Business Support Services; the Mining Cadaster and Licenses; Legal; and Mine Inspection.

RWANDA DEVELOPMENT BOARD (RDB): The Rwanda Development Board (RDB) was created by Organic Law N° 53/2008 of 02/09/2008. Its mission is the improvement of the economic well-being of all Rwandans by providing a “one-stop shop” to fast-track development, support sustainable economic growth, and create prosperity for all. The Mining Sector Strategy was developed by the Ministry of Natural Resources, in collaboration with the department responsible for Mining. There is also a department within RDB that is in charge of reviewing and approving EIAs, which includes REMA staff positioned within RDB.

RWANDA ENVIRONMENT MANAGEMENT AUTHORITY (REMA): The Rwanda Environment Management Authority (REMA) was established to act as the implementation institution for environmental policies and laws. REMA is additionally tasked with:

Coordinating various environmental protection activities undertaken by environmental promotion agencies.
Promoting the integration of environmental issues in development policies, projects, plans, and programs.
Coordinating the implementation of government policies and decisions taken by the Board of Directors.
Ensuring the integration of environmental issues in national planning among relevant departments within the government.
Advising the government on issues, legislation, and law relating to environmental management or implementation of regional or international conventions, treaties, and international agreements relevant to the environment.
To make proposals to the government in the field of environmental policies and strategies.

Mineral License

The key requirements for a mining right are as follows:

The economic value of the mineral resources in the mining area.
A mine design and mine development programme.
A mineral processing plan.
A social and environment management plan prepared after the approval of an environmental and social impact assessment.
An infrastructure development plan.
A health and safety plan for employees.
An employment, skills and technology transfer plan.
A compensation and resettlement plan.

The fees and charges to obtain a mining right are as follows:

FRW 4.5 million for a large-scale mining licence;
FRW 2.7 million for a medium-scale mining licence; and
FRW 1.8 million for a small-scale mining licence.

A mining license is valid for an initial period of up to 15 years, renewable more than once but each time for a period of up to 15 years.

Exploration License

An application for an exploration licence must be submitted to the CEO of the RMB in the prescribed form, together with the following documents:

A business registration certificate.
A geological and geophysical analysis.
A geochemical or mineral resource analysis.
A programme of exploration operations and associated costs.
A tax clearance certificate issued by the Rwanda Revenue Authority
Proof of the applicant’s financial capacity issued by a financial institution or audited financial statements for at least the last two years.
Proof of the applicant’s technical capacity, including its proficiency and the CVs of key personnel
An employment and skills transfer plan
Maps in the prescribed format.

The applicant will be notified of the decision within 90 days of submission of a complete file.

The fees and charges for obtaining an exploration license are FRW 900,000

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