Mining industry to create 50,000 jobs

Regulators in the mining sector and private investors are discussing projects they can develop to reduce poverty.In a meeting that attracted over 50 participants in Kigali, this week, it was agreed that job creation in the mining sector was an important aspect that mining companies should focus on.“Our vision is to create three modern and large scale industrial mines and over 100 well managed small and medium mines which are able to create 50,000 jobs by 2020,” Michael Biryabarema, the Director General of the Geology and Mines Department (GMD) in the Ministry of Natural Resources said.“Although Rwanda’s mining sector is not the leading export earner in the region, we want to make the sector the leader in service provision by creating contractual jobs that are well paying. To achieve that, we target to device means of attracting investments worth $500 million by 2020”.Biryabarema further urged mining companies to substitute basic imports such as construction equipment for their factories in order to contribute towards reducing the country’s imports by at least $10 million by 2020.“For example, there is a granite cutting and polishing plant that opened early this year that produces granite tiles using local resources. Instead of importing construction materials, we can contribute to the country’s development by learning from them and looking for local sources for major construction materials that we need,” he said.Mineral exports fetched over $150 million last year, a performance that was mainly aided by good prices on the international market. The mining fraternity plans to increase earnings from mineral exports at least $240 million by 2020.The urge for more investors drove GMD to team up with experts to explore 21 areas that have mineral potential in order to diversify the country’s mineral exports; currently, they have managed to produce detailed studies of four new areas.Leonidas Simpenzwe, the senior geologist at Rutongo Mines Ltd, said although the mining sector largely depends on fluctuating international prices for a “bad” or “good” year, miners should be encouraged to upgrade and add value to their concessions.“We have to ensure that while we are striving for maximum productivity and profitability, we do not undermine factors like environment protection and social responsibilities to the communities in which we operate,” Simpenzwe said.The mining sector was privatized six years ago and as of now has over 130 private mining companies and 400 mines in Rwanda, most of which are artisan, and according to GMD, plans are underway to upgrade them.The country is in the process of preparing its second Economic Development and Poverty Reduction Strategy (EDPRS 2) to guide medium-term development aspirations between 2013/14 to 2017/18.EDPRS2 will reflect priorities for public spending and develop projects that particularly address economic growth, poverty reduction and good governance.

National

Mining industry to create 50,000 jobs