The union representing mine and quarry workers has backed a proposed insurance scheme that would compensate miners for income lost when heavy rains force mining operations to stop. The Rwanda Extractive Industry Workers Union (REWU) says the proposed climate insurance could provide a financial safety net for workers who depend on daily earnings and often lose income whenever mining sites are closed because of dangerous weather conditions. Rwanda is exploring a parametric insurance scheme designed to provide timely financial support when excessive rainfall disrupts mining operations and workers’ incomes. According to the Ministry of Finance and Economic Planning (MINECOFIN), Rwanda’s mining sector employs about 92,000 people, many of them casual or daily-paid workers who earn only when they work. ALSO READ: New insurance scheme could save mine workers income in rainy seasons Heavy rainfall, flooding and unstable ground can make mining sites unsafe, forcing operations to halt and leaving workers without income. André Mutsindashyaka, Secretary General of REWU, said the proposed scheme could operate as a form of job-loss or unemployment benefit for miners affected by weather-related work stoppages. “When there is heavy rain, mine workers do not work. They are paid only when they have worked,” Mutsindashyaka said. He said compensating workers during such interruptions could also reduce pressure on them to continue working in unsafe conditions simply because they need an income. The Rwanda Mines, Petroleum and Gas Board (RMB) has warned mining operators to take precautions during periods of heavy rainfall because of increased risks of flooding, mine collapses, erosion and unstable ground. How the insurance would work Unlike conventional insurance, parametric insurance pays automatically once a predetermined weather threshold is reached, instead of requiring individual workers to file claims and prove their losses. Under the proposed model, a payout could be triggered when excessive rainfall is recorded over several consecutive days at or near mining sites. Rainfall data from Meteo Rwanda would be cross-checked with satellite records to determine whether the agreed threshold had been reached. ALSO READ: Mining sector records over 90,000 jobs Every enrolled worker at an affected mining site will then receive a fixed payment, tentatively estimated at between Rwf15,000 and Rwf25,000 for each qualifying event. Payments will be made through mobile money, bank or SACCO accounts, ideally within two weeks of the weather event. Premiums could be shared among workers, mining companies or cooperatives and the Government. MINECOFIN would lead policy development, RMB would support implementation, while the National Bank of Rwanda would provide regulatory guidance. Initial coverage could focus on the March-to-May rainy season before later being extended to the September-to-December season. Mutsindashyaka said the Government could subsidise the scheme, drawing lessons from crop and livestock insurance programmes. “The Government can inject subsidies, like it did for crop and livestock insurance schemes,” he said. He said mining companies, workers and development partners could also contribute to the insurance fund. ALSO READ: Probe names major hazards affecting miners’ safety, health Income losses affecting worker retention Mutsindashyaka said insurance against rain-related income losses could also help reduce high worker turnover in the mining sector. “Mine workers change every day due to poor wages or not being paid at all,” he said. He said stakeholders were still discussing how much a worker should receive when unable to work because of heavy rains. “But it could be the same amount as they are paid per day during normal days,” he said. Mine workers are paid depending on the value of minerals extracted and the nature of their work, with daily earnings ranging from Rwf3,000 to Rwf15,000, according to Mutsindashyaka. “The average income per month is Rwf60,000,” he added. For workers relying on daily earnings, several days without work can significantly affect household income. Aline Uwimana, a mine worker in Gatsibo District, said prolonged rainfall can leave families struggling to meet basic needs. “In April we spent a whole week without working. I have three children, of whom two are studying. I need to satisfy their basic needs as a family,” she said. “Such loss of income affects our livelihoods and some quit the job to look for other jobs. Job-loss insurance is needed.” Mining association welcomes proposal Deus Kayitakirwa, Chief Executive Officer of the Rwanda Mining Association, said the insurance proposal was timely. “Any scheme looking at mine workers’ welfare, development and safety is welcomed,” he said. ALSO READ: Govt publishes list of top 10 ready-to-mine blocks “Extreme rainfall causes flooding and mine accidents. That is why mine workers do not work during heavy rains and are therefore not paid by employers. Protecting them against income loss was needed.” Kayitakirwa said the contribution shares for mining companies, workers and the Government were still under consideration. He said a study on the proposed insurance model had been conducted in four companies across four districts, which could potentially serve as pilot locations. “We will work with Meteo Rwanda to assess heavy rainfall,” he said. Kayitakirwa said contributions from miners would have to remain affordable given the relatively low incomes of many workers. “MINECOFIN can also contribute. BNR is a regulator. We can also engage sponsors to beef up funding for the scheme,” he said. “Miners’ contributions should be affordable because they are small informal workers. Funding is needed because when workers do not work during heavy rain, mining companies lose too.” He said the Rwanda Mining Association would participate in discussions to determine premium contributions and compensation levels. Safety during heavy rains The proposed insurance comes as mining authorities continue to warn operators about the dangers associated with heavy rainfall. RMB has instructed mining operators to close and clearly mark dangerous areas, inspect locations where erosion or runoff could enter underground workings, and identify areas where cracks, unstable ground or geological weaknesses could cause collapses. Mutsindashyaka said protecting workers against income losses could reinforce such safety measures by reducing the financial incentive to continue working during dangerous weather. He also said the broader discussion about miners’ welfare should eventually address minimum earnings for workers. “Most miners are paid based on their output. Previously, if workers failed to find minerals during extraction, they received no pay. They were essentially over-exploited,” he said. He suggested workers could receive a minimum daily income even when extraction does not produce minerals. For now, however, the proposed insurance remains under discussion, with stakeholders yet to agree on premium contributions, compensation levels and the final structure of the scheme.
