New deal to boost mining production

Six private mining companies have been urged to increase the national mining production capacity by 20 per cent and to protect the environment. The companies won between eight and 15 years Gatumba Mining Concession. They include KNM Combines, Geosami, Crystal Mining and Trading, Ruli Mining and Trade, Nsyabire and SEAVMC. While announcing the contracts in Kigali, last week, the Minister of State in charge of Mining, Evode Imena, said the six have potential to do modern extraction and are committed to improve the livelihood of the residents around the mining areas. Minister of State in charge of Mining, Evode Imena briefs the six private mining companies prior to signing of the contracts. “These six small-scale companies will invest Rwf6.5 billion in the next five years to extract 3,300 tonnes of mixed tantalum, tin and tungsten ores from 10 blocks of the former Gatumba Mining Concession, most of which is located in Ngororero District with a small part in Muhanga District,” he said. The entire concession, which covers 22,000 hectares of land, according to Imena, has been divided into smaller blocks to ease operations because of the concession’s large size. The entire concession was under the management of the South African company, Gatumba Mining Concession Ltd, from 2007 until early this year. While the contracted six companies will extract from only 100,000 hectares, Imena said the ministry is still searching for large scale companies to take over the remaining concessions. “As of 2014, we have extracted 9,000 tonnes of minerals countrywide per year. These six companies will at least contribute 500 tonnes per year, reflecting about 20 per cent of the current. By the time we get other investors for the remaining nine blocks, the production will increase by 30 per cent,” the minister said. Speaking to journalists after the signing of contracts, Imena said the six will be contributing about $45 million every year to national mineral revenues which stood at $216 million last year, adding that the government targets annual mineral production worth $400 million by 2017. Minister Imena explains to the press the importance of signing contracts with the mining companies. (Photos by Doreen Umutesi) “They have committed Rwf440 million to corporate social responsibility actions in the next five years but by next month, they will have injected Rwf41 million into One-Cow-Per-Poor-Family scheme (Girinka) for the socio-economic development of the communities surrounding mines,” he said. Speaking on behalf of the investors, Celestin Havugimana, the managing director of Geosami Ltd, said they would use modern means to increase mining production, avoid accidents which have been claiming the lives of miners but asked for government’s collaboration. “We know these mining concessions have been in use but not professionally operated. We have effective mining skills and modern ways of extraction which will perfect these contracts. The rampant mines accidents are due to poor extraction which will never come on our professional extraction,” he said. editorial@newtimes.co.rw

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New deal to boost mining production