Optimism for mining sector as global wolfram price shoots up

Global market reports last week indicated a sharp rise in the price of tungsten, one of Rwanda’s main mineral exports, a development that bodes well for the sector. The chairperson of the Rwanda Mining Association, Jean Malik Kalima, said the development is a good sign considering the big investments stakeholders have sunk in the sector. “This reported rise is a welcome development. It is a good sign. It encourages miners who have been, for the past two years, let down by the low prices. Foreign investors will also again pick interest as they had turned their backs on us,” Kalima said. Rwanda’s other principle mineral exports are tin and coltan. Tungsten, also known as wolfram, is a hard, rare metal used in many different ways because it is very strong and durable. According to reports, the unit for tungsten is metric tonne units (MTUs) and the price earlier last week shot up to $310-345, a significant increase from below $200 just a few months ago. The price of cobalt and tungsten has skyrocketed in recent months because of concerns that the supply of the vital metals may not be able to keep pace with demand. While cobalt is used in batteries for electric cars, laptops and cell phones, tungsten goes into drills, military projectiles, golf clubs and automotive machinery, among others. Kalima said some of the foreign investors who had developed cold feet are now showing signs of returning. He is also happy since banks which were also guarded, as far as giving loans to the mining sector is concerned, can now have reason to support investors in the sector. Kalima said: “For the last two and a half years, things have not been well. There was a fall in prices to as low as 45 per cent and it was very difficult for tungsten, and other minerals, to get market.” This time last year, it was reported that each of Rwanda’s principle minerals lost value on the international market with the value of tin depreciating by 23 per cent, coltan by 41 per cent and wolfram by 46 per cent. According to the Rwanda Development Board, mining in Rwanda presents unexploited opportunities in ores, processing and diversification. The country’s main mineral exports are ores processed to extract tin, tantalum and tungsten and few gold and gemstones. Mining is the second largest export earner for the economy. In 2014, the sector generated about $210.6 million of foreign exchange. RDB seeks to see an increase of the mining sector’s contribution to GDP from 1.2 per cent to 5.27 per cent, 600,000 jobs in the sector, and mineral export earnings to increase to $400 million by next year. editorial@newtimes.co.rw

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Optimism for mining sector as global wolfram price shoots up