Seven mining companies have seen their licences revoked by Rwanda Mining, Petroleum and Gas Board (RMB) over "serious deficiencies," including failure to meet environmental and labour standards.
The RMB has the powers to, among other things, carry out inspections where operations related to minerals, quarries, oil and gas resources are conducted to ensure compliance with the licensees' obligations.
The revocations announced on January 3, followed "repeated failures to remedy serious deficiencies highlighted in official cancellation warnings issued earlier," the RMB said in a statement. As noted, the mining companies, most of them with concessions in Western Province, "breached safety, environmental, and labour standards, and have not met their investment commitments."
Companies were warned
Although the revocations may lead to job losses, according to Andre Mutsindashyaka, the Secretary General of Rwanda Extractive Workers Union (REWU), the RMB made "the right decision."
"For us, revocation of mining licences is the right decision because these companies often put the lives of mine workers at risk," Mutsindashyaka told The New Times.
"The good thing is that these companies had been warned. Of course, that [revocation of licences] will affect employment, but employment that puts workers' lives at risk has no utility."
One of the affected companies, Ngali Mining, lost a licence in Ngororero District; DEMIKARU lost two licences in Rubavu and Rutsiro Districts; ETS MUNSAD Minerals lost one licence in Ngororero District; while FX TUGIRANUBUMWE lost one concession in Kamonyi District.
There is also Ngororero Mining Company (NMC), which lost two licences in Ngororero (Nyamisa and Nyabisindu); Ets R.M. & Sons which lost two concessions in Bugesera District; and Union Stone, which lost its licence in Rwankuba, in Gatsibo District.
"These companies have breached safety, environmental, and labour standards, and have not met their investment commitments," the statement reads in part.
The RMB said the mining license cancellations are part of the government's efforts to implement measures that support and professionalize mining operations. Except for Ngali Mining, which extracted amethyst, all the other companies dealt in tin (cassiterite), tungsten (wolframite), and tantalum (coltan), which are collectively referred to as 3Ts.
In November 2023, the RMB cancelled 13 licences of 10 mining companies due to "serious and persistent shortcomings" related to safety, environmental and labour standards as well as investment commitments. Several other companies with serious deficiencies were given cancellation warning notices.
"Through collaboration with other Government institutions, RMB will continue to ensure the security and proper decommissioning of abandoned concessions while preparing for responsible new investments," the statement said.
The regulator encouraged all licence holders to continuously enhance their operations and maintain the highest standards.
"This is essential for ensuring that mining remains an enabler of our country's sustainable development," it said.
In April 2023, a report by RMB indicated that accidents killed at least 429 people while 272 were injured in a period of five years. The report on the status of illegal mining and accidents showed that 337 mine accidents were recorded from July 2018 to 2022. A study by REWU, in October 2023, found that most mining companies in Rwanda had a level of compliance with labour standards that is less than 50 per cent.
Noticeable progress
Mutsindashyaka said that as a result of continued advocacy and government enforcement of labour and safety standards, the mining sector is becoming more professional and safer.
"The number of accidents in mines has decreased over the years, thanks to different measures put in place," he said. "In terms of labour compliance, there has been noticeable progress over the past five years, from 30 per cent to 49 per cent."
Mutsindashyaka said the number of workers with contracts in the mining sector increased from 21 per cent in 2021 to 34 per cent in 2023.
Ange Nadine Ashimwe, a mining engineer at New Bugarama Mining, as well acknowledged that the local mining sector has witnessed significant improvements in terms of growth and professionalism.
She too noted that RMB conducted inspections before coming up with the decision to revoke the mining licences.
Exploration a real challenge
"This decision reminds those that are still operating to adhere to the standards," said Ashimwe who also noted that some of the standards required by the regulator are hard to achieve as the Rwandan mining sector is not fully advanced.
"Our mining sector is largely artisanal and the situation on the ground is the most challenging. One may think that we can easily attain the standards of advanced mining industries," she said.
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She suggested that the RMB should consider "the reality on the ground" as it enforces regulations, by doing more in mineral exploration, which is currently done by the companies.
"We have asked them [RMB] to estimate mineral reserves before issuing licences. Most of the time, investment is spent on exploration, which can take up to four years before you reach a productive zone. Imagine digging for four years before you make any returns; and one metre can cost about Rwf800,000. That's a real challenge.
"Sometimes, they give you a licence for a certain mineral and you fail to get what you expected. Exploration studies are very expensive. RMB should conduct exploration studies first and issue mining licences knowing what companies should expect," she said.
The mining sector is one of Rwanda's main export revenue earners.
In the first nine months of 2023, mineral exports raked in more than $851 million (over $1.6 billion) up from $584 million over the same period in 2022. In 2022, Rwanda recorded total mineral export earnings of over $772 million, an increase from $516 million in 2021.
In 2024, the government targets $1,5 billion in annual mineral export revenue, as it seeks to attract investments in the mining sector by positioning the country as a regional hub for mineral processing and trading.
