rwanda national export strategy - minicom

RWANDA NATIONAL EXPORT STRATEGY
4.3.4 MINING
The mining sector was recently privatised, which improved production levels, productivity and value
addition. Export revenues increased from US$32M in 2004 to US$93M in 2008, but due to the global
downturn, decreased to US$56M in 2009. Still, mining has been the largest revenue earner in terms of
export products, for the past six years (2004 – 2009). In 2010, mining sector export revenues increased to
US$68M.
Primary minerals being extracted and traded are cassiterite (a tin ore); Colombo - tantalite (commonly
called coltan - an ore that is the source of niobium and tantalum); and wolfram (a tungsten ore).
Construction materials that are used in their primary state or processed include amphibolites, granites and
quartzites, volcanic rocks, dolomites, clay, kaolin, sand and gravel. Peat and travertine/lime are also being
exploited for energy, agriculture and cement.
The sector is split between artisanal miners and mid-sized international companies. The government‘s key
areas of focus for developing a sustainable mining sector include strengthening regulatory institutions,
attracting investment, improving sector skills and practices, increasing productivity, diversification, and
value addition. The sector currently employs35,000 people, and according to the director of OGMR, there
is a need for 30 additional trained professionals, 4,000 technicians, and thousands of trained employees,
as more than 80% of industry management states that human capital constrains the industry. Suggestions
for human capital development include sending students abroad, developing lab facilities and training,
creating local degrees, and installing regulation that encourages local knowledge transfer.
In the medium to long-term, the industry will need to overcome challenges, such as the dearth of human
capital, and high-energy costs for processing and transport. Fortunately, Rwanda also has competitive
advantages, which could position her as a mining ―hub,‖ such as its relative stability, zero tolerance for
corruption, and centralized position in the region. The Rwanda Mines and Geology Authority‘s strategic
plan for 2010 – 2013 provides a roadmap for industry improvement. This plan addresses challenges in
five core areas: 55
Strengthen the enabling legal, regulatory and institutional environment;
Develop competitive investment and fiscal policies for mining;
Improve mining sector knowledge, skills and use of best practices;
Raise productivity and establish new mines; and
Diversify into new products and increase value addition.
The NES addresses the export of Rwandan Mining products as well as increasing the growth of Rwandan
mining services exports through initiatives such as the Mining Campus.
Priority Issues and Challenges
In the minerals sector, challenges to extraction remain, including difficulties accessing finance, dealing
with taxes, coping with price risks, hiring internationally for advanced skills, and creating value-added
work as compared to exporting basic materials. The main challenges are:
Issue #1 Professional skills can improve. There is a dearth of skilled mining engineers, geologists
and metallurgists in Rwanda, requiring companies to import skilled staff. These gaps are being addressed
with efforts to train young mining professionals and attract FDI, but this will take time.
Issue #2 Knowledge of reserves can be increased. The knowledge of reserves remains a major
challenge, but it can be addressed by clarification and implementation of the new mining law‘s licensing
55 The 2010 – 2013 Rwanda Mines and Geology Authority strategic plan aims to improve geological and mining knowledge in Rwanda, improve
operating and investment condition in Rwanda, and add value to mineral and quarry resources: Source OGMR, 2010 – 2013 Strategic plan, 2010.
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