Aterian Plc, a UK-based mining company has signed a joint venture agreement with Rio Tinto Mining and Exploration Ltd and Kinunga Mining Ltd to explore Lithium in Rwanda.
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The agreement, signed on August 1, allows for the exploration and development of lithium and by-products at the HCK Joint Venture project licensed in Rwanda. The Project has 19 identified pegmatite zones for lithium, cesium, and tantalum over its 2,750 hectares in Southern Province.
Atterian plc, which is listed on the London Stock Exchange listed is an exploration, trading, and development company with a diversified portfolio in Africa dealing in critical and strategic metals projects.
The agreement indicates that RIO has the option to invest $7.5 million in two stages to earn up to a 75 percent interest in the license to explore minerals vital for a successful energy transition to renewable energy.
The increasing popularity of smart energy, which requires a greater reliance on electric batteries for which lithium is a crucial raw material, has made lithium increasingly competitive in the international mineral market.
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Dubbed "white gold" for electric vehicles (EVs), lithium plays a critical role in the cathodes of all types of lithium-ion batteries that power EVs, although it is also used in the batteries of laptops and cell phones, as well as in the glass and ceramics industry.
In 2018, the Rwandan government called on investors to invest in exploration and processing of lithium in a bid to brand the country as a destination for mining investment.
Charles Bray, Chairman of Aterian, said the project offers the prospective scale necessary to attract such a major partner as Rio Tinto.
"I would like to thank Rio Tinto for their time working with us to enable this investment in the significant lithium potential in Rwanda. I am also grateful for the support from our partner, HCK Mining Company Limited, and for the continued partnership with the Rwanda Mines, Petroleum and Gas Board who have been crucial to completing the transaction.”
He added: "We believe this investment highlights the opportunity and transformational potential of the Rwanda mining sector.”
Yamina Karitanyi, CEO of Rwanda Mining, Petroleum, Gas Board welcomed the development saying that the joint venture is important as it is focusing investment towards key stages of exploration and backbone of a thriving mining sector.
"We encourage additional similar projects in order to significantly contribute to the critical minerals value chain.”
Lithium is a key commodity for global electrification ambitions, as it is the central chemical element of dominant battery chemistries. Benchmark Minerals Intelligence forecasts that in 2023 lithium demand will reach 900,000 tonnes, a jump of 27 percent year-over-year and further forecast to reach 1.5 million tonnes in 2026.
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In the second quarter of 2023, Rwanda's mineral exports brought in over $362 million (nearly Rwf 426 billion) revenue from a total volume of mineral exports reaching 6,638,538 kilograms.
This is a 46.4 percent increase in mineral export revenue and a substantial 12 percent rise in volumes.