Firms strike gold in the Western, Northern regions

Gold prospecting in the mineral-rich Western and Northern provinces have produced positive results, with the companies involved either having completed or are about to complete the first phase of exploration before they seek permits to begin actual mining.

Monday, February 27, 2012
Miners inside a tunnel. With the discovery of gold deposits, mining is set to become a money maker for the economy. The New Times / File.

Gold prospecting in the mineral-rich Western and Northern provinces have produced positive results, with the companies involved either having completed or are about to complete the first phase of exploration before they seek permits to begin actual mining. Although the quality and quantity of the gold quantity deposits are yet to be fully explored, early reports indicate that the Western Province is rich in the mineral, which has attracted several foreign companies.Three foreign companies and some local investors have completed surface exploration, including detailed mapping, intensive trenching and sampling to define their drilling targets.These include Kivu Gold, licensed by Government to operate in Karongi, Rutsiro and Ngororero districts in the Western Province; Transafrika in Rusizi and Rulindo districts; and Rogi Mining, operating in Nyamasheke, Gicumbi and Ngoma districts."We have been exploring for seven years now, but our first stage of drilling began last year, from January to July; we drilled 2,300 metres and look forward to continue drilling approximately another 5,000 metres in search for gold,” Oleg Moiseev, the Managing Director of Rogi Mining told The New Times in an exclusive interview."The data we have collected so far indicates that there are gold deposits in Miyove and some other places that we have explored, although we are not yet certain of the quantities,” he said.The company has so far invested more than $4.5 million and targets to invest another $1 million, this year, on research and exploration in the hope of spotting better drill veins.A local company, General Mining Company, said that it had completed a two-year exploration in Rwashanyi, Bushekeri and Nyamasheke, and according to its proprietor and general director, Jean Ntabana, "enough gold exists for proper mining to begin."We were awarded an exploration certificate in those areas and after two years, we discovered that there were enough gold deposits. We are now in the process of applying for a mining permit as well as acquiring machinery to begin mining,” said Ntabana. In Rwanda, the company holds two permits and covers four areas totaling 114 500ha that are being explored. The other company, Transafrika, says that exploration methodology yielded tangible results as well.However, the Department of Geology and Mines at the Ministry of Natural Resources is still putting other minerals ahead of the gold prospect."Gold is for the future and not now; we have a lot of cassiterite, coltan and wolframite and we are still concentrating on these because they bring in tangible revenues,” said Francis Kayumba, the Director of Regulations and Inspection in the department. The total value of mineral exports, last year, was $158.8 million making it the country’s second foreign exchange earner after tourism."Before we concentrate on gold, it is best that we realize the full potential of the minerals that are in abundance to ensure that more revenues come in to develop the country.”The Director of Research at the Geology and Mines Department, Hildebrand Kanzira, said that there are potentially 10 gold rich sites in Rwanda, which, when tapped, will significantly push the mining sector forward."The reports we received from the mining companies in their exploratory phases have good news, but before we give out licenses for mining, we must verify all the reports and ensure that the procedures abide by the law,” Kanzira said.Currently, no company has a license to mine gold in the country. However, artisanal miners and residents of Karongi and Gicumbi districts reportedly turn up with ounces of the precious metal once in a while.Cassetirite remains Rwanda’s number one mineral export, with 6.9 million tonnes exported in 2011, fetching US$96.8 million.