Rwanda’s mining sector has been registering progress in areas including output and regulation, a move that is beneficial for both the country and its people through socio-economic development, according to investors in the industry. Janvier Ndabananiye, Director of New Bugarama Mining Company (NBM), told The New Times that the firm was established in 2009, and initially produced three tonnes of tungsten ore (also called wolfram) per month. By 2010, monthly production increased to six tonnes. The company is dedicated to the extraction of tungsten (also called wolfram) ore in Kagogo Sector of Burera District. “Currently, due to the introduction of skilled labour (mining engineers and geologists) and mechanised equipment, our average monthly production stands at 15 tonnes,” Ndabananiye said. On how its mineral production grew over years, he said, “Key factors for the growth include the utilisation of modern equipment, employment of skilled mining engineers and geologists, and ensuring security within the company’s work environment,” citing modern equipment for transporting and processing mineralised sands. On employment, he said, in 2009, the company started with 76 permanent workers, and increased the number to 248 in 2024. Besides this, NBM employs 400 miners under direct supervision of subcontractors and 181 casual workers, he added. Significant industry growth in various aspects According to Ndabananiye, Rwanda’s mining sector has seen progress over years. “I have over 20 years of experience in Rwanda’s mining sector and have witnessed substantial growth within the industry. In previous years, the sector faced significant challenges related to high rates of accidents, fatalities, and severe injurie,” he saids. “However, following the Rwandan government’s efforts to ensure safe, regulated mineral exploitation and the establishment of mining and geology programmes at the University of Rwanda (UR) and Rwanda Polytechnic (RP), we have seen marked improvements. Accidents have declined, and production has increased, as many mines now use 3D modeling technology to optimise mineral extraction methods effectively,” he observed. Thomas Hubakimana, Managing Director of Big Mining Company located in Ruhango District, told The New Times that the firm got a mining exploration licence in 2015, and a mining licence in 2020, adding that it started with 20 employees in 2015 and gradually increased to 460 employees currently. Employment, he said, focuses on people living around the mining site, adding that the company also got committed to paying community-based health insurance (Mutuelles de Santé) to between 400 and 500 individuals, among other initiatives in line with contributing to the development of communities. The firm pays pension contributions for its employees to the Rwanda Social Security Board (RSSB) for them to get retirement benefits when they will no longer be working, he indicated. At the start, Hubakimana said the monthly mineral output of this firm engaged in cassiterite and coltan business, was between 200 and 300 kilogrammes, but it is between three and five tonnes currently, implying that its production registered a more than ten-fold increase. When he started joining the mining business in 2000, operations were artisanal, but later, were gradually professionalised with the required tools, a move facilitated by the government’s tax waiver on equipment. “We have not yet reached the level at which we want to be, but progress was achieved,” he said, citing improvement in mining regulation, and technology adoption thanks to enablers including electricity availability at mining sites. Also, he said, mine workers wear protective gear including helmets for their safety, which was not the case in the past. Enabling factors for investors in Rwanda’s mining sector Among the enabling factors, Ndabananiye cited favourable regulatory environment, indicating that Rwanda has implemented mining policies and regulations designed to streamline processes and ensure transparency in mining sector. Regarding geological potential, he said that Rwanda possesses valuable mineral resources, including tin, tantalum, tungsten, and gold, adding that the government supports geological mapping to help investors identify viable opportunities. On political stability and security, he said that Rwanda’s reputation for political stability and safety significantly reduces the risks associated with mining investment, making it one of the most secure environments in the region for long-term investment. He also talked about the growing processing capacity of minerals, indicating that Rwanda is enhancing its mineral processing facilities, with plans to establish new processing plants and smelting facilities. “This allows for value addition domestically, improving profitability for investors by enabling the export of processed minerals rather than raw materials,” he said. For Hubakimana, the availability of schools that teach mining-related courses in the country for the modernisation of the sector with skilled workforce is an important factor, given that mining courses were previously sourced outside the country. Rwanda’s mining sector development efforts including, ensuring skilled workforce, are getting support from the ongoing Sustainable Development of the Mining Sector in Rwanda project. The goals of the project are strengthening the country’s mining sector, improving entrepreneurship and business environment, increasing investment in the mining industry, and supporting Rwanda’s socio-economic development through strategic partnerships. Co-funded by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ), the project is implemented by GIZ in partnership with Rwanda Mines, Petroleum and Gas Board (RMB) and the Kigali Integrated Polytechnic Centre’s Rutongo Mining School. New mining law to give impetus to the sector growth Hubakimana said that the law of June 26, 2024 governing mining and quarrying provides for penalties against a person who carries out mining activities or trades minerals without a licence, and the owner of land where mining activities are done illegally. With such provisions, he said, the law helps to deter people from carrying out such acts. Overall, he said, “The law implies tackling potential mineral fraud, and ensuring that people’s mining operations comply with the legislation, combating environmental degradation, and tax evasion,” pointing out that illegal mining was largely to blame for environmental degradation due to lack of rehabilitation of affected areas after mineral extraction. Ndabananiye said the changes in the new law addresses key areas of concern, pointing out that it strengthens provisions for long-term mining by increasing penalties for illegal mining and unauthorised mineral trading. “This change is expected to improve operations by deterring and reducing the theft and reducing mining-related accidents,” he observed. For instance, he said, while under the 2018 law, a person convicted of illegal mining faced a fine between Rwf1 million and Rwf5 million, or imprisonment for less than two months but not more than six months, the 2024 law provides that a person convicted of illegal mining activity is liable to a fine of Rwf25 million to Rwf50 million or imprisonment of two to five years. Additionally, Ndabananiye said, the law promotes mining and quarrying practices that respect community well-being and environmental standards. It also emphasises gender equality, encouraging inclusive practices within the industry. According to data from Rwanda Mines, Petroleum and Gas Board (RMB), Rwanda’s mineral export revenue rose to more than $1.1 billion (approx. Rwf1.4 trillion) in 2023, up from $772 million recorded in 2022, representing an increase of 43 per cent, while the target is to generate $1.5 billion by the end of 2024. Under Rwanda's five-year National Strategy for Transformation (NST2), mining revenues are anticipated to rise from $1.1 billion to $2.17 billion (including non-traditional minerals) by 2029.
