Rwanda Partners with Rio Tinto for Strategic Mining Exploration

Between 2014 and 2023, Rwanda topped the global coltan export rankings five times, surpassing the Democratic Republic of Congo (DRC). Despite accusations of "illegally" exporting Congolese coltan, Rwanda claims to possess mineral reserves worth $150 billion and is now seeking to uncover this potential.

On July 23, the Rwandan government signed an agreement with Rio Tinto, the world's second-largest mining company by market capitalization. This strategic partnership aims to explore and exploit deposits of 3T ores (tin, tantalum, and tungsten), lithium, and associated metals.

Francis Kamanzi, CEO of the Rwanda Mines, Petroleum and Gas Board (RMB), expressed optimism about the collaboration: "Through this remarkable partnership, we look forward to combining our local mining expertise with Rio Tinto's global experience to unlock the potential of our mineral resources and enhance our geological capabilities."

Financial specifics of the partnership, including Rio Tinto's investment in Rwanda and the anticipated revenues for local authorities, have not yet been disclosed. The Rwanda Development Board's press release indicated that initial efforts will focus on exploration to gather "high-quality" geological data.

As a reminder, Rwanda's mining exports totaled $1.1 billion in 2023, with 74% from gold. In addition to gold, Rwanda is a significant supplier of 3T minerals and has outperformed the DRC in coltan exports five times over the past decade. However, Rwanda has faced allegations of smuggling Congolese coltan, with a 2022 Global Witness report claiming 90% of Rwanda's coltan exports are smuggled from the DRC. Kigali denies these accusations, attributing its export success to a favorable tax regime for mining exports, which attracts traders to use Rwanda as a transit country.

Rwandan authorities assert the country's mining potential, estimating mineral reserves at $150 billion.