David Kezio-Musoke
27 May 2008
Kigali — Rwanda's mining industry, rarely talked about, has emerged as a top contender for the country's foreign exchange earners beating forecasts for last year among the traditional exports.
The industry accounted for some $60m in 2007 leading the traditional export earners. The newly established Rwanda Geological Authority (RGA) estimates that mining in Rwanda could earn revenue worth $108m by 2011 from mineral exports.
Also in line was the emergence of tourism that for the first time came ahead of coffee and tea in export earnings.
According to ORTPN - the tourism agency of Rwanda - tourism attracted earned $42.3 in 2007 while coffee and tea reaped $35.6m and $31.5m respectively.
The development underscores the increasing added value that new areas for economic exploitation could boost economic growth in the country recovering from the scars of civil war and ravage.
The National Bank of Rwanda says mining put an unbelievable $49m in Rwanda's national coffers between January and September 2007 with the most lucrative mineral being Cassiterite.
Before the war and the subsequent genocide in 1994 Rwanda produced three per cent of the world's Cassiterite. Cassiterite is a tin ore, a very important ingredient of electronics' components.
The mineral is also found in Walikale, in DRC's Northern Kivu Province, a part that borders Rwanda in the east. Rutongo Mine in Ruhengeri, Rwanda's Northern Province used to produce one per cent of the world's Cassiterite until the beginning of World War II.
Between 2001 and 2004 there was a sharp rise in the demand of the mineral. This is mainly because of the telecom and computer electronics boom that pushed up demand and market price.
This year the price of Cassiterite on the London Metal Exchange hit $19,000 per tonne up from $5,000 per tonne in 2003. This has encouraged the country to explore her potential to supply the world market with Microsoft, Hitachi and Samsung being the some of the biggest consumers.
"The truth is that, demand has increased worldwide forcing a hike in the price tags and therefore bringing in more hard currency to the Rwandan coffers," Dr Michael Biryabarema, the director general of RGA said.
Other potentially profitable minerals include Wolframite, Columbite-tentalite, Amblygonite and Tantalite (Colttan).
Gold has also been explored in some parts of the country. Some semi-precious stones including tourmaline, topaz, corundum, chiastolite, amethyst, opal and agate have been discovered.
The growing Asian market which includes buyers from red hot China, South Korea, Malaysia, Indonesia, India and Japan are other markets that Rwanda hopes to clinch.
The drive for profiteering has attracted several foreign mining firms including two large American companies that are interested in gold-mining licenses.
Other registered firms include Wolfram Bergbau, Metal Processing Association (MPA), Natural Resources Development Rwanda Ltd, Bay View Group, Sinotrade, Pyramid International, Rwanda Metals, Rwanda Allied Partners and Africa Tangsten.
In the 1980s and 1990s, mineral exports dropped when the major mining company collapsed but news of improving international market prices could offer new hope for Rwanda's economy.
In 2006, about $55m worth of mining projects were approved by RIEPA.
Dr. Biryabarema said there are 22 existing government concession agreements so far signed with serious investors adding that minerals have been contributing between 30 - 40 per cent of Gross Domestic Product.
The government though is yet to harmonise its mining laws and are currently in parliament pending approval. The industry according to RGA, directly employs some 25, 000 people.
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