Rwanda has inked a new mineral exploration deal with global mining giants RIO Tinto Mining and Exploration (RTX) Ltd, after "tremendous potential” has been found in the country.

Since last year, after a partnership between RTX, the government of Rwanda, Kinunga Mining Ltd, a local company, and Aterian PLC, a British company that has been doing mineral exploration in Rwanda for the past four years, significant exploration procedures have been taking place in the country, specifically in search for Lithium.

ALSO READ: Five things you should know about Rwanda’s new mining law

Rio Tinto Group is a British-Australian multinational company that is the world's second largest metals and mining corporation, while Aterian PLC, which is listed on the London Stock Exchange is an exploration, trading, and development company with a diversified portfolio in Africa dealing in critical and strategic metals projects.

A recent cabinet meeting approved the new partnership between Rwanda and Rio Tinto, allowing exploration to continue for two more years.

Speaking to The New Times, Charles Bray, Executive Chairman of Aterian PLC, said the deal is a joint venture for exploration with RTX and the government of Rwanda, after tremendous mineral potential was found in the country.

"Following Aterian’s introduction of Rwanda’s mineral potential to RTX, the exploration team has determined that the country has tremendous mineral potential for Lithium. So in the end, RTX and the government decided to take two years to explore minerals,” he said.

He noted that Rwanda has long been ignored for its large scale mining resource potential as in the past the emphasis has been on the artisanal and small scale (ASM) mining production of Coltan and Cassiterite.

While such small scale mining was important, he said, it led to stakeholders neglecting other naturally occurring minerals.

"Rwanda has been blessed with an abundance of LCT (Li-Ce-Ta) pegmatites. Aterian theorised that the natural weathering (rain) has dissolved the Lithium in these pegmatites and led to it naturally leaching into the bedrock in the form of various Lithium minerals including spodumene, lepidolite, amblygonite,” he said.

ALSO READ: New law, sustainable development project ‘key to Rwanda’s mining progress’

"So considering the large number of pegamatites supporting ASM (Artisanal and Small-Scale Mining) of Coltan and Cassiterite which litter Rwanda, there is a tremendous amount of potential for large lithium discoveries,” he added.

The first agreement between Rio Tinto and Rwanda had allowed for the exploration and development of lithium and by-products, through a project that boasts 19 identified pegmatite zones for lithium, cesium, and tantalum on 2,750 hectares of land in Southern Province.

The agreement indicated that RIO has the option to invest $7.5 million in two stages to earn up to a 75 percent interest in the licence to explore minerals vital for a successful energy transition to renewable energy.

The new agreement is expected to expand the exploration to western parts of the country.

More about Lithium exploration

Rwanda's latest lithium exploration efforts under the first deal with Rio Tinto reached advanced stages this year, as Aterian PLC was preparing to commence core-drilling last month.

However, some delays were experienced for a short because the drill equipment took a bit longer than expected to arrive in the country.

ALSO READ: Rwanda gets equipment to support sustainable mining efforts

Core drilling is a crucial phase in mineral exploration. It involves the use of hollow cylindrical drills to extract samples from below the earth’s surface, which are then analysed to assess mineral presence, concentration, and distribution.

This is not the first time that lithium core-drilling is taking place in Rwanda, as Trinity Metals were the first to hit the milestone in 2023.

The drilling plan under the latest exploration involves boring to depths of approximately 3,000 to 5,000 metres in total, creating about ten drill holes.

Lithium is an important mineral today due to its application in energy storage and electronics. It is a key component of lithium-ion batteries which are used in gadgets including phones, computers, and so on.

Beyond consumer electronics, lithium's significance extends to renewable energy and electric vehicles (EVs). Lithium-ion batteries are vital for storing energy from renewable sources such as solar power.