Seven mining companies lose concessions over ‘serious’ failures
Wednesday, January 03, 2024
Miners on duty at a mining site in Rurindo District. RMB has revoked licences of seven mining companies over “serious deficiencies,” including failure to meet environmental and labour standards. CRAISH BAHIZI

Rwanda Mining, Petroleum and Gas Board (RMB) has revoked licences of seven mining companies over "serious deficiencies,” including failure to meet environmental and labour standards.

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The revocations announced on January 3, followed "repeated failures to remedy serious deficiencies highlighted in official cancellation warnings issued earlier,” the RMB said in a statement seen by The New Times, indicating that the decision took immediate effect.

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Breached safety, environmental, labour standards

The companies, most of them with concessions in Western Province, "breached safety, environmental, and labour standards, and have not met their investment commitments.”

One of the companies, Ngali Mining, lost a licence in Ngororero District; DEMIKARU lost two licences in Rubavu and Rutsiro Districts; ETS MUNSAD Minerals lost one licence in Ngororero District; while FX TUGIRANUBUMWE lost one concession in Kamonyi District.

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There is also Ngororero Mining Company (NMC), which lost two licences in Ngororero (Nyamisa and Nyabisindu); Ets R.M. & Sons which lost two concessions in Bugesera District; and Union Stone, which lost its licence in Rwankuba, in Gatsibo District.

"These companies have breached safety, environmental, and labour standards, and have not met their investment commitments,” the statement reads in part.

The RMB said the mining license cancellations are part of the government's efforts to implement measures that support and professionalize mining operations.

Except for Ngali Mining, which extracted amethyst, all the other companies dealt in tin (cassiterite), tungsten (wolframite), and tantalum (coltan), which are collectively referred to as 3Ts.

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In November 2023, the RMB cancelled 13 licences of 10 mining companies due to "serious and persistent shortcomings” related to safety, environmental and labour standards as well as investment commitments.

Several other companies with serious deficiencies were given cancellation warning notices.

"Through collaboration with other Government institutions, RMB will continue to ensure the security and proper decommissioning of abandoned concessions while preparing for responsible new investments,” the statement said.

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The regulator encouraged all licence holders to continuously enhance their operations and maintain the highest standards.

"This is essential for ensuring that mining remains an enabler of our country's sustainable development,” it said.

The mining sector is one of Rwanda’s main export revenue earners. In the first nine months of 2023, mineral exports raked in more than $851 million (over $1.6 billion) up from $584 million over the same period in 2022.

In 2022, Rwanda recorded total mineral export earnings of over $772 million, an increase from $516 million in 2021.

In 2024, the government targets $1,5 billion in annual mineral export revenue, as it seeks to attract investments in the mining sector by positioning the country as a regional hub for mineral processing and trading.