The government through the Rwanda Mines, Gas, and Petroleum Board (RMB) says it has embarked on reviewing and imposing improved export procedures to streamline the beryllium business on the local market.
The development comes after the mining board suspended the beryllium exportation business on Thursday, August 8, a decision that the latter attributed to rising cases of illegal mining and associated with unrest and conflicts of beryllium in the country.
Speaking to The New Times in an exclusive interview, John Kanyangira, Mining Traceability Division Manager at RMB, explained that the demand for beryllium is on the rise triggering illegal activities among mineral exporters.
Beryllium is a strong, light metal used in aerospace and defense, electronics, and nuclear industries. Like Lithium, it is also associated with 3Ts and is mainly found in tailings, especially in pegmatite.
ALSO READ: 2023 recap: A look at Rwanda's mineral returns
According to Kanyangira, export earnings from Beryllium have been increasing since 2021 as the global demand for Beryllium increases.
According to data from the mining board, Rwanda earned over Rwf5.6 billion in the first half of 2024, surpassing the value acquired in the whole year of 2023. The main markets, RMB said, are China and UAE.
"Based on various inspections conducted, it was observed that most of the Beryllium exported is hand-picked from the old tailings scattered in mines or abandoned mines and from streams nearby the mines, which causes illegal mining in different parts of the country,” Kanyangire said.
He added; "Mineral exporters source Beryllium from different localities which include mining companies and outsourcing.
However, given the quantities exported vis avis the nine mining companies that are authorized to extract and sell Beryllium, it seems that the mineral traders still get supply from unknown sources.”
Scams in licenses
According to the mining board, beryllium is associated with 3Ts and most of the companies have not added Beryllium on their licenses, even when they still supply to the traders without authorization.
Equally alarming is the fact that mineral exporters get beryllium from illegally extracted areas.
"Just recently there were some 200 people caught in the act of illegally mining beryllium, and the majority were sent by investors whose licenses were not permitted to export the mineral metal.”
What are the official prices?
As it stands, RMB maintained that a ton of beryllium oxide with a grade of (8-12) percent ranges between $1,000 and $3000 on the local market.
However, on the global market, the average price of a metric ton of beryllium alloys is $831,600 due to its rarity. This is equivalent to approximately $6,172 per kilogram.
Beryllium is used as a complement to other metals, and its demand on the global market is growing, making it a "strategic” mineral like lithium and other minerals.
"Given the fact that demand for beryllium is growing, RMB should emphasize exploration in the long run and inventory of active sites in different parts of the country in the short term,” reads part of RMB’s statement shared with The New Times.
Reacting to the large-scale use of the mineral, Kanyangira pointed out that beryllium provides several benefits such as hardness, high melting point, heat control system, and high thermal conductivity.
It is also increasingly being used in various sectors like medicine, telecommunications, industries, energy, and electricity.
"However, the depletion of raw materials from which it is extracted is a major restraint in the growth of its market share. This means that the demand for Beryllium is likely to continue growing.”
It is estimated that the market value of beryllium will reach a value of $218.23 billion in 2031, growing with a compound annual growth rate of 4.6 percent during the forecast period of 2022 to 2031.
The context
The North American region has contributed to about more than 90 percent of the total revenue generated in 2022 owing to the increasing investment by various sectors such as defense, industries, and consumer electronics.
The US region is also anticipated to drive market share due to the rising demand for this element in the defense sector of this region.
The Asia Pacific beryllium market is also expected to garner significant revenue during the forecast period because of the increasing use of consumer electronics in this region.
Rwanda’s mineral exports rose to over $1.1 billion in 2023, up from $772 million in 2022, a 43 percent growth.
The growth, according to the mining board, is largely attributed to increased value addition, continued professionalization, greater investment in mechanization, and the strategic implementation of sustainable and responsible mining practices.
However, it's not all rosy for the sector whose growth is still hindered by illegal mining activities, particularly landowners who allow persons without licenses to carry out mining activities on their land.