Rwanda’s mining industry generated $93 million (Rwf52.3 billion) last year according to information from the country's Ministry of Natural Resources. The figure was 15 percent more than government projections of $81million and represents an increase of 31 percent from the $71 million (Rwf40 billion) earned in 2007 Only tourism with $214 million revenues generated more income last year.
Vincent Karega, State Minister of Environment and Mining, said the steady growth of the sector's earnings is due to the liberalisation of the economy by government.
He added, “In Vision 2020, government also identified mining as a priority sector that can diversify the country’s exports.”
It is upon this background that government is injecting Rwf12.5 billion into the sector for 2008-2010, in order to strengthen its regulation, avail new data to interested investors, support value addition to metallic ores and quarries, and into the sector consolidation and sensitisation programme.
Mr Karega also attributed the growth of revenues to the institution of clear government policy and a new law that protects investors in the sector allowing long-term leasing.
Rwanda mineral earnings are derived mostly from cassiterite, coltan, wolfram, and gold. The $71million earned by these key minerals in 2007 represented 40 percent of the total national exports revenues while contributing about 10 percent of the Gross Domestic Product (GDP).
Without providing statistics, Mr Karega disclosed that Cassiterite, a tin oxide mineral (SnO2) still dominated the industry with higher revenues than Rwanda’s other key and highly-valued minerals such as Wolfram (FeMnWO3), Coltan and Gold (Au).
Cassiterite is the main ore of tin used to produce tin cans for food containers, solder and polishing compounds.
As of October, 2008, the mineral fetched revenues of US$37.6 million (Rwf20.5 billion) from 3.7 million kgs extracted. It also represented a 45.9 percent of the total revenue of $81.9 million (Rwf44.7bn).
It is believed that most areas of the country have the mineral in abundance as proven by its discovery way back during the colonial period. It is exploited in 26 of the 30 districts of Rwanda with 185 exploration permits already operational.
The mineral sector is largely dominated by foreign companies such as Gatumba Mining Concession of South Africa, TransAfrika and Bay View from US, and Rwanda Minerals Mining from Germany.
Because of the industry’s steady and dynamic growth, the government is still trying to attract more investors to exploit other untapped minerals.
Some of these include tourmaline, sapphire, topaz, corundum, amethyst, opal, agate and flint. Players in the sector also say the real boom is yet to come due to the country’s untapped potential.
Source: The New Times, Kigali
No comments:
Post a Comment