Revenue from Rwanda’s mining industry to drop by 35 percent

• Tin bringing in more revenues amongst all minerals Targets from the country’s mining industry are expected to drop by either 35 percent or 40 percent due to the global financial crisis, the Minister of state in charge of environment and mining, Vincent Karega told Business Times yesterday. According Karega, government was targeting Rwf59.6 billion but because of the economic crisis that started affected the industry late last year, they are expecting a drop in revenues.According to the Global Witness report released in March, the Mining sector has been growing steadily since 2005 to date and the value of minerals exports have increased from Rwf21.6 billion ($38 million) in 2005 to Rwf73.9 billion ($130 million) in 2008. This is revealed in. However, the Minister said that they had a target of Rwf59.9 billion and they would have realised the target if it wasn’t the financial problems. About Rwf53.5 billion was fetched from the industry in 2008. “The continuing rise in production has been attributed to the influx of foreign investments from 2006 which allowed the privatizations of 20 concessions previously managed by REDEMI, Rwanda’s only state owned mining company,” the document said. According to a document there are now seven foreign companies mining, Cassiterite, Coltan and Wolframite on ex-REDEMI concessions.“About 36 private mineral firms are op erational in Rwanda, most of which are involved in trading rather than mineral extraction,” the document states.The Minister also said that Tin is the mineral that brings in more revenues that any other mineral in the country. In addition to fostering the growth of its own mineral production, Rwanda has the potential to develop mineral-processing facilities, which could be beneficial for neighbouring countries such as the Democratic Republic of Congo (DRC). The government is planning to improve the energy supply and encourage further foreign investment. Artisanal and small-scale mining accounted for over half Rwanda’s domestic mineral production in 2008, artisanal mining cooperatives sell their goods to larger mining companies or traders based in the Kigali. Karega also said that artisans contribute a lot on the amount of money that is generated each year although he added that it is complementary were big companies buy and feel the gap. Ends

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Revenue from Rwanda’s mining industry to drop by 35 percent