What new US-Rwanda tin export deal means for economy

Rwandan mining company Trinity Metals is in the process of establishing a new supply chain of tin from Rwanda to the United States. The development follows a letter of intent signed between Trinity Metals and Nathan Trotter, the largest manufacturer of tin and tin alloys in North America, at the US Department of State, on Tuesday, May 14. According to the US Department’s Bureau of Energy Resources, the deal is part of broader efforts to onshore critical minerals, enhance national security, and promote economic growth in the United States. ALSO READ: Inside Rwanda’s Tungsten mine which is the leading producer in Africa Trinity Metals runs three companies that are involved in mining and exploration of tin, tungsten and tantalum in Rwanda. In an interview with The New Times, Peter Geleta, CEO of Trinity Metals Group, emphasised the strategic value of entering the US market. Pointing out that the US is the world’s largest economy, he noted that there is a massive incentive for Trinity Metals and Rwanda in the US market as the country seeks to secure a stable and consistent supply of critical minerals needed to boost their manufacturing industries. “The letter of intent Trinity has signed with Nathan Trotter to supply tin from our mines in Rwanda is an important step towards strengthening relationships with the US and securing a stable demand for our minerals. This is also a testament of the US government’s confidence in Trinity Metal’s responsible mining agenda,” he said. He added that the size of the US economy and its growth trajectory will mean that there will always be a strong demand for critical minerals from the US. With this, he said that Rwanda is ideally placed to provide minerals to the US for many years to come. Over the past three years Trinity Metals has invested over $35 million in its Rutongo, Musha and Nyakabingo Mines more than tripling its production volumes. Nyakabingo Mine is now Africa’s largest Tungsten producer and the fourth largest in the world. “With the US now seeing the potential in the region, this will no doubt raise international investment interest and we are confident that new investment in the Rwandan mining industry is imminent,” he said. In June 2024, Trinity secured a $US3.85 million Technical Assistance Grant from the US. International Development Finance Corporation (DFC) making it the first operating mine in Africa to receive such technical assistance from the DFC. Trinity currently exports its tin concentrate from its Musha and Rutongo Mines to Thaisarco Smelter in Thailand and its Tungsten concentrate is exported to Wolfram Bergbau & Hütten AG (WBH) in Austria. Economists weigh in Commenting on the possible tin export deal, Straton Habyarimana, an economist, told The New Times that the US is a big market which Rwanda and Africa can take advantage of amidst the trade war with China. “For example, in 2023, the US imported $276 billion of minerals, mostly from China. With the trade war going on, the US wants to diversify its sources of minerals. A good opportunity for Rwanda and Africa to tap into that huge market,” he noted. Jean Marie Vianney Samarwa, a lecturer of economics at Institut Catholique de Kabgayi, said the new market for minerals from Rwanda will attract new income, growing the country's GDP, increasing job opportunities. “This will also improve practices and experience of the mining sector. Companies extracting mines improve mining techniques with gaining more money. When the mineral extraction sector is more developed, this attracts many other investors and again new markets, increasing activities in the mining sector,” he said.

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What new US-Rwanda tin export deal means for economy