Rwanda’s Mining Story: Another glimmer of hope in the socioeconomic transformation of Rwanda

Too long greeted with scepticism, Rwanda’s mineral industry is perceived by the international community to be based on illegal imports from the D.R. Congo and seen without considerable profits by locals due to lack of information. As the Rwandan Mining Sector’s strategic advisors and in order to know more about the true face of the industry, the OTF Group approached the Rwandan State Minister in Charge of Mines and Environment in the Ministry of Natural Resources, Hon. Vincent Karega. The below article highlights his insights from meeting OTF Group’s Senior Research Analyst, Mbaga Nzabakurana. Rwanda like the Democratic Republic of Congo, Burundi, Uganda and Tanzania sits astride the Albertine Rift, known to be one of Africa’s most important sites for the conservation of biodiversity and but also for its significant mineral deposits. Indeed, Rwanda has being exporting tin ores since 1930, through Belgians settlers who started mining activities in Bugarama, Rutongo, Nyakabingo (Northern Province), Rutsiro, Sebeya, Giciye, Kabaya, Bisesero (Western Province), Gatumba, Mushubi (Southern Province), Rwinkwavu, Mirenge, Nemba, Musha, Ntunga, Bugarura, Bibare, Kuruti and Gahengeri (Eastern Province). In most cases, all these tin ores also contained both Colombo-Tantalite (commonly known as “Coltan”) and Wolfram, since these three precious metals are often exploited together as they are commonly found in the same geological deposits/rocks. On the other hand and for many generations, traditional exploitation of gold has been undertaken in Nyungwe Forest (Southern Province) and Miyove (Northern Province). Numerous other mineral deposits have been identified by successive geological studies during and after colonial times for example by: H. Meyer in 1919, F. Delhaye and A. Salee in 1928, and many other geologists all of whom discovered a variety of mineral riches under Rwandan soil. Despite this long exploitation history, the Rwandan mining sector’s potential has been neglected and untapped for many reasons. Firstly, the transfer of mines ownership from colonial private companies to government control was not all that smooth. Secondly, the government body coordinating mining activities formerly known as SOMIRWA (Société des Mines du Rwanda) failed in its mandate of developing a prosperous sector. In 1985, the bankruptcy and dissolution of SOMIRWA left the whole mining sector on its own confronting a host of strategic problems. At this time resuming the mining activities was substantially challenging and most mines fell into the hands of traditional miners without capacities to boost the sector. The good news today is that the privatization reforms started by the Government of Rwanda since 1995 have yielded encouraging levels of investments in both exploitation and in preliminary value addition taking place today. More mining sites are emerging and modern equipments are being bought in to replace some of the very rudimentary tools for production. All these efforts are encouraged and supported by the Government policies and related institutions. Besides the traditional Coltan, Wolfram, Tin and Gold, there are many other areas of potential especially in quarry products (construction materials) such as granite, sand and limestone providing opportunities including tiles manufacturing, glassware and cement. Geological anomalies highlighting gold, nickel, platinum, sapphire and cobalt are also attracting explorers. Local Small and Medium Enterprises are exploiting the lion’s share of mining sites with 153 sites out of the 185 currently operational in the country. The current growth of the sector is being aided by a mix of predictable policies for business and a good business environment, coupled with security and political stability, together with ongoing developments in infrastructure. However, bottlenecks to note are: the temporary collapse in demand and hence prices on the international market, the reduced access to financial liquidity by mineral traders, Rwanda’s low skills base in geology and the seriously tarnished image of Rwanda’s mining activities perceived as an illicit trade route that fuels tensions and conflicts in Eastern Congo. While it is true is that fighting factions in DRC have access to mining sites, most of them are very hostile to Rwanda, like FDLR, MAI-MAI, PARECO, etc; Rwanda has never been and will never be their preferred business route, especially because they also constitute a threat to both Rwandans and Kinyarwanda-speaking Congolese in both North and South Kivu. It is true that some Congolese miners chose Rwanda as their business markets; however, those are small traditional miners who are unable to add value to their minerals to meet the basic exports standards such as at least 65% mineral concentration and proper packaging. These small-scale miners are attracted by the processing capacities of Rwandan mining industrialists, the competitive Rwandan Financial institutions and the very low banking costs. Still, the imported quantities from DR Congo are very marginal due to infrastructural (transport) problems and red tape on exports at DR Congo’s customs posts. The rebels and influential business people choose to charter Cargo flights to their final destinations markets using the airports of Goma and Kindu for heavy ores such as cassiterite, wolfram and coltan and small jets from various airstrips for gem stones and gold. In order to clear those doubts, Rwanda is now fully engaged and committed to certify its mining operations with the support of the German Federal Institute for Sciences, who are also trying to help Congo in developing similar certification. This will assist regional traders in dealing only with well-certified minerals with clear and identified origins. The Government of Rwanda is seriously committed to this process as well as to legal regional and international trade. The theory and rumours about Rwanda not having minerals and exploiting Congo minerals is hence baseless and not scientific – renowned geologists and museums such as the “Turveren” in Belgium can challenge this wrong assumption. Unfortunately, this has influenced even people supposed to be knowledgeable from highly regarded circles in this world. The challenges for us are not to find mineral deposits in Rwanda, but the right skills, the capital and technology to fully exploit the potential. The recent joint military success story between the Congolese and Rwandan armies (respectively FARDC and RDF) and the revival of bilateral cooperation will definitely help to clear the air on the unfounded allegations and streamline formal trade links where needed. It is certain that real and intensive mining activities will continue to take place in Rwanda and contribute substantially to its economic transformation. Those still with doubts can freely visit different mines in Rwanda; they would hence realize that the Rwandan Mining Sector not only exists, but has much higher potential for growth. Ends