Business

Rwanda Turns To Minerals To Boost Revenues

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about it http://ddc.com.sa/components/com_k2/views/itemlist/view.json.php geneva; font-size: small;”>Announcing the continent’s economic outlook recently in South Africa, clinic Mthuli Ncube, sildenafil a chief economist for the African Development Bank (AfDB), said regional integration, in terms of infrastructure investment and maximizing revenue from mineral resources, was the best way for Africa’s economies to improve growth.

Uganda has since responded by handing down a concession to Tibet-Hima Industry Company Limited to manage former copper giant, Kilembe mines after 30 years in Limbo.

In a bid to boost its mineral production, the Government of Rwanda has signed a $22m Vast Mining Concession License with Pella Rwanda Resources Ltd to undertake mining operations in Rwamagana District.

The signing ceremony was held in Kigali on Thursday.

Rwandan officials said the parent company, Pella Resources Limited, is an African focused natural resource and energy group having its headquarters in the United Kingdom and a strong track record in exploration and mine development across eighteen countries in Africa.

Mr. Adonis Pouroulis, one of Pella Rwanda Resources Ltd’ s shareholders, has worked in the natural resources sector for over 18 years and his expertise lies in the discovery, exploration and development of mineral resources.

With an estimated project value of USD 22 million for a period of five years, Pella Rwanda Resources Ltd will carry out mining operations to extract mainly Cassiterite (Tin) and possibly Tantalite and Tungsten at Musha and Ntunga concessions located in the Eastern Province.

By the fifth year of the license, the company committed to increase its minimum production levels from 50 tonnes to 120 tonnes per month of refined minerals and social programmes meant to build the capacity of young Rwandans in the mining industry by sponsoring them for formal trainings and education in different fields of the mining sector.

The overall objective of the mining license is to document the main roles and responsibilities of both the investor and the Government of Rwanda with respect to the mining operations and to grant permission to the investor to be able to operate in Rwanda.

The Minister of State in charge of mining in the Ministry of Natural Resources, Evode Imena said that the government is committed to supporting investments in the mining sector targeting to increase the sector’s production.

“As Rwanda is committed to triple the mineral sector production by 2017, having such an important company investing in the exploration, exploitation and processing of minerals, we believe we are on the right track toward achieving our objectives,” she observed.

Speaking at the signing of the mining license, the Rwanda Development Board’s acting Chief Executive Officer, Ms. Clare Akamanzi, maintained that “Rwanda has various types of mineral deposits in which we look forward to working with our partners like Pella Rwanda Resources Ltd to develop and enable more investments, as well as explore additional opportunities not yet discovered”.

A few months ago, Prime Minister Pierre Habumuremyi told Parliament that the exploration activities on mines in Rwanda started in 1909, but it was not until 1930 that mining activities were launched with 21 concessions across the country.

Currently, there are 547 mines in Rwanda.

In 2012, mining accounted for 28 percent of Rwanda’s exports, second only to tourism. Tea accounted for 14 percent while coffee accounted for 12.6 percent of all exports.

The Prime Minister said that the government was committed to supporting and investing in the mining sector, with the hope that annual production will triple from US$136 to US$ 409 million by 2017.

Officials say the mining sector in Rwanda currently employs 20,000 people in addition to those working in mining concessions.

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