Almonty Industries Inc., a US firm, and the government of Rwanda have formed a strategic tungsten partnership that will advance the country’s mineral value chain, processing capabilities, and sustainable mining development, the Rwanda Mines, Petroleum and Gas Board (RMB) announced on Monday. ALSO READ: Inside Rwanda’s Tungsten mine which is the leading producer in Africa Almonty is a supplier of conflict-free tungsten, a strategic metal critical for defence and advanced technology sectors. Under the partnership, the government of Rwanda is set to receive a 25 percent equity interest in Almonty Rwanda, a joint venture that will combine the near-term collection and export of ore, pre-concentrate and panning tailings from the country's existing small-scale license holders with mobile processing and new exploration. Rwanda’s 25 percent interest in the platform is in exchange for its contribution of the Shyorongi tungsten exploration concession and a mineral processing license. Almonty will hold the remaining 75 percent. ALSO READ: In a first, Rwandan mining company supplies tungsten to US “The agreement also provides for Almonty Rwanda, with the assistance of the government of Rwanda, to acquire ore, pre-concentrate and panning tailings from Rwandan mining license holders, including small-scale license holders, for sale or upgrading. Almonty Rwanda intends to export that material until a collection and processing plant is built in Rwanda,” reads a statement from RMB. “This gives the partnership access to material from Rwanda's existing production base in the near term, rather than depending solely on future exploration at Shyorongi,” it goes on. Rwanda is the only African country among the world's ten largest tungsten producers. ALSO READ: Trinity Metals plans $100m investment in Rwanda mineral operations The joint venture agreement, according to RMB’s statement, is contemplated as the first stage towards a more comprehensive investment and development framework with the government of Rwanda, covering future investment and the construction of a collection and processing plant. “Where required, lower-grade material collected may be shipped to the company's existing processing facilities for upgrading. This is the element of the partnership expected to generate material first, ahead of the mobile processing unit and exploration at Shyorongi,” the statement reads. Separately, Rwanda will use reasonable endeavours to facilitate introductions to mine operators, landowners and mining license holders so that Almonty Rwanda can negotiate tailings arrangements, obtain access for the mobile unit and acquire material. Speaking about the partnership, Lewis Black, Chairman, President and Chief Executive Officer of Almonty, said the most immediate opportunity is the material that is already being produced. “Rwanda's small-scale license holders are producing ore, pre-concentrate and panning tailings today, and this agreement allows us to collect, upgrade and export that material while we build out the collection and processing plant,” he noted. Alice Uwase, CEO of RMB, said the investment will help transform the country’s mining sector by introducing world-class processing infrastructure, international standards for environmental and social governance, and a comprehensive training program to develop Rwandan talent. “The partnership advances our vision of building a modern, sustainable mining industry that creates lasting value for the people of Rwanda,” she noted.
