Rwanda to Invest $2.37 Billion to Boost Mining Sector

The Rwanda Mines, Petroleum and Gas Board (RMB) has embarked on a three-year research initiative to assess the estimated mineral deposits across the country, including gold.

With a budget of $2.37 billion allocated for this project, RMB aims to generate valuable data that can serve as a resource for investors seeking loans from financial institutions.

This comprehensive research, initiated in the current fiscal year starting in July 2023, intends to de-risk the mining sector by providing investors with crucial data.

The Chief Executive Office (CEO) of RMB, Yamina Karitanyi, revealed plans for a three-year research initiative. She said the research aims to estimate mineral deposits, including gold, across the country.

While investors with mining concessions will still conduct detailed feasibility studies, the government’s research intends to facilitate the use of data for these studies.

“What the government decided is de-risking the sector, by taking the responsibility to carry out in-depth research which can make an investor utilise the data the government has obtained and then use it for feasibility study which can make a bank accept to grant them a significant loan,” Karitanyi said.

The research initiative is designed to gather nationwide data, offering insights into the contents of mining licenses granted to companies.

The data would empower effective negotiations with investors, addressing aspects such as investment amounts, expected yields, and long-term planning.

RMB’s research is seen as a strategic move to enable investors to secure financing for modernizing operations and achieving better yields, particularly in comparison to the current dominance of artisanal practices.

The ongoing research in the first fiscal year (2023/2024) focuses on determining the amount of lithium and gold available in the country.

Rwanda’s Chief Financial Officer of RMB, Innocent Safari, outlined the challenges Rwandans face in conducting research to determine the quantity and value of minerals in their mines, approved by qualified experts and recognized by banks.

The government’s intervention in conducting studies aims to determine inferred mineral resources, estimating quantities, grades, and qualities of minerals with a limited level of confidence.

Rwanda’s mining sector export revenues hit a record $851.6 million between January and September 2023, a 45.6 percent increase compared to the same period in 2022.

RMB aims to attain $1.5 billion in mineral exports in 2024 by attracting investments, fostering sustainable growth, and enhancing the overall competitiveness of Rwanda’s mining industry.

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Collins Ogutu

Nairobi based Digital Journalist, Corporate Communication Expert and Digital Marketer with a wealth of experience in multimedia. Accredited member of the Media Council of Kenya.

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