Investment Policy Review - Rwanda - UNCTAD Virtual Institute

Investment Policy Review of Rwanda
Box III.5. Pyramides (s.a.r.l.): new directions in Rwandan mining
Pyramides is a mining and minerals processing company owned 50 per cent each by Egyptian
and Rwandese interests. The partners’ relationship developed from minerals trading interests.
The company was formed in 2000 and awarded seven concessions to mine coltan. The company
currently exports about $3.5 million of coltan concentrate and expects to export product to a
value of $30 million in five years time (equivalent to one third of total exports in 2004).
Several features of this investment illustrate the challenges, opportunities and potential impact
of mining FDI in Rwanda:
The existing geological survey maps do not show the concessions as being prospective for
commercial mining. Pyramides was alerted to the mineral potential through its minerals buying
operations. It suspected that some of its mineral purchases originated in Rwanda and not just the
Democratic Republic of the Congo.
The foreign partner had no mining expertise at the outset and has developed his knowledge
through a process of trial and error. The first concession required an investment of $2.5 million
to yield a throughput of 50 tonnes per hour. The second concession will require an investment of
only $1 million for a throughput of 100 tonnes per hour.
Rwanda’s tantalite ore does not require crushing and grinding prior to metallurgical recovery
treatment. It thus lends itself to artisanal mining methods. Apart from its own operations, Pyramides
assists artisanal miners to produce ore on its own concessions. It buys the ore for treatment and
deducts a charge for services and facilities provided to the small miners. There are about 80-100
small miners on each of its concessions.
There is potential for further processing of the concentrate. At present, the concentrate
exported is 25 per cent coltan and no value is obtained from the remaining metals and impurities.
Pyramides is considering the construction of a $1 million refinery in Kigali to further process its
own concentrates and those from independent sources – both Rwandese and regional. The refinery
may be a joint venture with its main Chinese customer.
As a result of the logistics difficulties entailed in importing its mining equipment, Pyramides is
planning to establish an equipment leasing venture. It will import and lease equipment and supplies
to independent miners based on minerals purchase contracts.
Source: investor interview.
The lack of strategic attention paid to the sector over the past decades and the poor state of the
geological survey mean that little is known about Rwanda’s actual potential in the mining sector. However,
existing geological data indicate that there may be significant potential (at the scale of Rwanda) and the
Government is giving more strategic attention to the sector and putting in place a favourable framework
for private investment in industrial mining (figure III.9). The three main initiatives currently underway are:
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