Rwanda’s Mining Sector Gains Momentum with Rio Tinto Partnership

President Paul Kagame of Rwanda recently met with Rio Tinto CEO Jakob Stausholm at the World Economic Forum in Davos. The discussion centered on partnerships and investment opportunities in Rwanda's burgeoning mining sector.

Key Developments:

• Rio Tinto, a global mining leader, has shown interest in investing up to $7.5 million in Rwanda's mining sector.
• A joint venture agreement was signed in August 2023 between Rio Tinto, Aterian, and Kinunga Mining to explore lithium in Rwanda.
• This venture has identified 19 pegmatite zones over 2,750 hectares in Southern Province, focusing on lithium, caesium, and tantalum exploration.

Strategic Importance of Lithium:

• Lithium is crucial for the production of rechargeable batteries used in electric vehicles (EVs), laptops, and cell phones, as well as in glass and ceramics manufacturing.
• With a forecasted demand reaching 900,000 tonnes in 2023, a 27% increase from 2022, lithium’s importance in the energy transition to renewable energy is evident.

Rwanda’s Mining Sector Growth:

• Rwanda has seen significant growth in mineral export revenues, increasing from $71 million in 2010 to over $772 million in 2022.
• From January to September 2023, the sector generated $851.6 million in export revenues, marking a 45.6% increase from the previous year.
• The Rwandan government aims to achieve $1.5 billion in annual mineral export revenues by 2024.

The partnership with Rio Tinto signals a major step forward in Rwanda's mining sector, especially in the exploration and potential extraction of critical minerals like lithium. This collaboration could enhance Rwanda's role in the global supply chain of essential minerals for the renewable energy and technology sectors.