Top story: Cassiterite, coltan exports increase by 2.9 percent

Despite the world economic recession leading to a slow down in production, there has not been any disinvestment and closing of companies in the country. Rwanda’s export revenue generated from cassiterite and coltan from January to March 2009 increased by 2.9 percent, according to official figures from the Ministry of Natural Resources. Total mineral exports between January and February this year had declined to $9.77 million (Rwf5.5 billion) from $15.98 million (Rwf9.1 billion) in the same stretch in 2008. This caused a subsequent revenue fall of 38.84 percent which came as a result of the low demand on the international market due to the global economic recession. However, the Ministry of Natural Resources said in its statistics that there is an improvement in export volumes for only cassiterite and coltan, which are Rwanda’s key minerals. About 1,238.4 tonnes of both minerals were exported in the first three months of 2009 compared to 1203.9 tonnes exported in the same period last year. In a break down, 971.6 tonnes of cassiterite were exported, whereas coltan exports amounted to 261.9 tonnes. “This is because the minerals are rare on the international market, especially cassiterite used in manufacturing of telecom tools and soldering,” Vincent Karega, State Minister of Natural Resources and Environment explained. However, the prices of the two minerals succumbed to the global economic meltdown with cassiterite recording only $6.2 (Rwf3,495) per Kg compared to $9.2 (Rwf5,186) per Kg last year. Cassiterite, a tin oxide mineral (SnO2) dominates Rwanda’s mineral revenues. As of October last year, the mineral fetched revenues to the tune of $37.6 million (Rwf20.5 billion). It is exploited in 26 of the 30 districts of Rwanda with 185 exploration permits already operational. Other minerals and precious stones such as tourmaline, sapphire, and corundum, including wolframite, also a key mineral, have registered sharp declines in volumes. Despite the world economic recession leading to a slow down in production, Karega said that there has not been any disinvestment and closing of companies in the country. “The persistence of the global financial crisis will definitely hurt earnings this year but it is a temporary situation...the future remains bright. We expect full recovery in 2010.” An estimated $60 million (Rwf33.8 billion) of export value from mineral is expected this year. This is shy of $40 million of the earlier projections of $100 million (Rwf56.4 billion). The drop in the minerals earnings is a blow to the mining sector whose contribution to Gross Domestic Product (GDP) is estimated at 10 percent. The sector is one of Rwanda’s key foreign exchange earners alongside tourism, coffee and tea. Ends