Could lithium be Rwanda’s next big deal?

You probably own remote car locks, a watch, camera, laser pointer, MP3 players, hearing aids, calculators or encountered thermometers, battery backup systems in computers, remote control toys. These devices are powered by lithium batteries whose primary raw material is lithium metal. But beyond that, bleaching and sanitation products, agrochemicals, aluminium alloys, cement and concrete additives, dyes and pigments, as well as pharmaceuticals, all use lithium as a raw material. However, a few countries currently produce that kind of metal, and among the dominant countries, Africa barely appears on the list of the dominant players of lithium products. In a move aimed at branding Rwanda as a destination for investment in mining, Government is appealing to investors to invest their financial resources in exploration and processing of lithium, a rare metal. Francis Gatare, the Chief Executive Officer of the Rwanda Mines, Petroleum and Gas Board (RMB), told a group of business leaders on Monday that Rwanda was investor-ready for precious metals like lithium. “Early stage exploration cycles have shown us that there is lithium mineralization in the country with good potential for significant discoveries,” he told participants while making a case for Rwanda’s mining sector. He particularly indicated that exploration studies have indicated areas like Rwamagana, Nyanza, and Muhanga, among others, to have the potential for lithium metals. According to Roskill Information Services, a global consulting firm, in 2016, the global markets for lithium products were estimated to be batteries (43 per cent), ceramics and glass (28 per cent), lubricating greases (7 per cent), polymer production (5 per cent), continuous casting mould flux powders (4 per cent), air treatment (3 per cent), and 10 per cent for other uses. Other uses may have included agrochemicals, aluminium alloys, cement and concrete additives, dyes and pigments, industrial bleaching and sanitation products, organic synthesis, pharmaceuticals, pool chemicals, and welding. “We live in a world where rare metals are strategically in high demand globally,” said Ray Power, chief executive officer at Metalysis. About 85 per cent of the world’s lithium-ion battery cell production capacity was in Asia owing to longstanding public and private investments in lithium-ion battery technology by consumer electronics companies and governments. Australia, Brazil, China, Portugal, and Zimbabwe were the leading producers of lithium minerals. Rwanda seeks to be on the global map. Alain Joseph Ntenge, a senior geologist at RMB, told The New Times that there was a big potential for lithium extraction and processing in Rwanda. “Exploration work has identified a number of areas where lithium is highly concentrated. Gatumba (in Ngororero) is one of the top places where there are high concentrations of lithium metals,” he said. Kabacuzi in Muhanga, Karongi, Nyanza, Rulindo and Rwamagana, are other places that have lithium deposits. Shane Ryan, the head of technical services at Piran Resources Rwanda, a mineral processing company, revealed that they plan to kick off deep exploration of lithium beginning next year. “We expect to see a realization of lithium by early next year with large scale mining by mid-2020 as we source funding which is a continuous battle,” he noted. Rwanda is also looking for more investors in exploration activities, a field that is hardly been funded by traditional financiers and is currently less attractive to equity investors. Gatare told business leaders meeting in Kigali for a regional mining forum that Rwanda has “competitive legal and regulatory framework, proven world-class resources in tantalum and untapped resources in gold space.” editor@newtimesrwanda.com

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Could lithium be Rwanda’s next big deal?