Mining
Why Invest in Rwanda-Mining Sector?
Overview
Mineral Export Revenues from 2010-2018 in USD Millions
Rwanda Export target in NST1
Key Targets
Investment Opportunities
Regulatory Frame Work
Rwanda Mines Board Licensing Regime
Fees applicable
Fiscal Regime
Licensing Process & Timeline
Mineral Transparency Initiatives in Rwanda
Fiscal and Non Fiscal Mining Incentives
Incentive Package to Mining Sector
Contact Us
Why Invest in Rwanda-Mining Sector?
- Sustained Economic Growth
- Robust Governance
- Investor Friendly Climate
- Access to markets
- Excellent Labor Market
- Untapped investment opportunities
Overview
Mining is the second largest export sector in the Rwandan economy after Tourism. The Mining sector in Rwanda has untapped potential that presents lucrative investment opportunities in the entire value chain from exploration to value addition.
Mineral Export Revenues from 2010-2018 in USD Millions
Period 2010 2011 2012 2013 2014 2015 2016 2017 2018 Value in USD 71.25 158.8 136.3 226.1 210.6 149 166.5 373 346.6 Rwanda Export target in NST1
Rwanda recently set an ambitious target of generating USD 1.5B in export revenues by 2024
Key Targets
- Contribution to GDP is to increase from 1.2% to 5.27 % by 2017/2018.
- The number of working people (16 years and above) with main job in the mining sub-sector will increase from 20,000 to 60,000 by 2017/2018.
- Total investment (cumulative) in the sector will be increased from USD 150 million to USD 500 million by 2017/2018.
- Export earnings will increase from USD 158 million in 2011 to USD 400 million by 2017/2018
- Certified mine sites with efficient water and wastes management system to increase from 20% in 2011/2012 to 100% by 2017/2018
- Percentage of the certified mine sites with safe and secure working conditions will be increased from 25% in 2011/2012 to 80% by 2017/2018
Mining Investment Opportunities
EXPLORATION OPPORTUNITIES:
The Government of Rwanda has invested in exploration works in Prospective Target Areas to generate good primary geology data to be used by mineral exploration companies. Intensive, up to date and detailed mineral exploration can be carried out in the recently identified Prospective Target Areas (PTAs) to delineate and quantify their mineral resources.
MINING
The mining law grants the right to exploit three categories of mines: artisanal, small scale, and large scale mines to any person or company with proven technical expertise and financial capacity to develop and run a mining project.
VALUE ADDITION:
Rwanda’s mineral ores produced in the country are exported as 100% raw mineral concentrates, not as metals. The establishment of processing plants to smelt cassiterite into tin, refining wolframite into tungsten, tantalite into tantalum, gemstones cutting and polishing.
INDUSTRIAL MINING
Currently, Rwanda’s mining sector is mostly artisanal; Modern technology is needed to upgrade the sector to a semi- mechanized and later at industrial level to increase production, which is low compared to the proven potential Mining equipment including drillers, bulldozers, gravity table shakers are needed to upgrade the sector
GEMSTONES:
The exploration and exploitation of gemstones is still at a low level in Rwanda. The country possesses a variety of gemstones including: beryl (Aquamarine), Amblygonite, Corundum (Ruby and sapphire), Tourmalines and different types of Quartz. There are opportunities to set up businesses cutting and polishing gemstones.
INDUSTRIAL MINERALS:
Rwanda possesses a variety of minerals such as good quality silica sands, kaolin, granite, vermiculite, diatomite, clays, limestone, talcum, gypsum and pozzolana. However, exploitation and processing of industrial minerals to meet the demand for construction materials is still low especially production of tiles, slabs sculptures, paints, bricks and concrete aggregates.
PROVISION OF MINING EQUIPMENTS:
Mining equipment and services are required both in the country and the region. There is a gap in companies trading in or offering mining related services.
TRADE IN MINERAL SUBSTANCES:
Trade in mineral substances is carried out by holders of mining and mineral trading licenses and owners of smelting companies. Trading in minerals, including cassiterite, wolframite and niobium – tantalite, must contain at least 30% value added.
Regulatory frame work
- Rwanda Development Board: Investment process, guidance, facilitation, leading negotiations for strategic projects, issuing EIA, and providing incentives
- Rwanda Mines Board: Designing Policy and strategies, Issuing of Mining and Quarry licenses, laws and regulations elaboration and supervision and Promotion of mining sector at national and international levels, enhance geological and mining knowledge of the country, improve exploitation and investment conditions, monitoring mining activities to comply with the law and increase value addition to Rwanda’s mines and quarries.
- Rwanda environment management authority: Setting environment standards, environment inspection of mining projects and rehabilitation of exhausted mines and quarries
- Local Authorities (District and Sector): Issuing of noncommercial quarry license and Commercial small scale quarry license.
Rwanda Mines Board Licensing Regime
The new mining code offers a variety of licenses as shown below;
License Type
Term (Years)
Size (Ha)
Ownership
requirement
Exploration License
4
400
None
Exploitation License Category
Small Scale License
5
<=50
100% Local shareholding
Medium Scale License
10
>50<=100
40% Local
shareholding
Large Scale License
15
>100<=400
None
Quarry License Category
Non-Commercial Quarry License:
1
<=1000 m2
Commercial Small Scale Quarry license
5
>1000 m2<=1Ha
(Owned by Rdese)
An industrial Quarry License
15
>1<=15
Besides the above, there are other types of licenses like;
Item
License Type
Term (Years)
1
Mineral Trading License
5
2
Mineral Processing License
7
Fees applicable
Below are the fees applicable for the Mineral trading and Mineral Processing Licenses
Type of License
Application
Fees
Renewal Fees
Annual Fees
License Fees
Mineral Processing
100,000
100,000
100,000
N/A
Mineral Trading
200,000
1,000,000
5,000,000
100,000
Below are fees applicable for Mineral Exploration, Exploitation and Quarry Licenses
Type of License
License Fees
Renewal Fees
Annual Fees
Transfer of License
Annual Surface
Rent /Ha
Exploration
900,000
1,100,000
· 1stYr.=900K
· 2ndYr=1.8M
· 3rd Yr=2.7M
· 4th Yr=3.6M
· 5th to 8th Yr.
=3.6M
900,000
Large Scale
Mining License
4,500,000
9,000,000
1,800,000
4,500,000
6,500
Medium Scale
Mining License
2,700,000
5,400,000
900,000
2,700,000
6,500
Small Scale
Mining License
1,800,000
3,600,000
450,000
1,800,000
6,500
Industrial
Quarry License
4,500,000
9,000,000
1,800,000
4,500,000
N/A
Commercial Small Scale
Quarry License
450, 000
900,000
N/A
450,000
N/A
Non Commercial Quarry License
5000
N/A
N/A
N/A
N/A
Fiscal Regime
Rwanda’s mining Sector focuses on the optimization of financial benefits through payment of taxes, royalties and other payments that reflect the value of mineral resources to society.
Below are some of the taxes paid in Rwanda;
Type of Tax
Rate(%)
Corporate Income Tax
30
Royalty Tax on Base Metals(3TS)
4
Royalty Tax on Precious Metals and
Gemstones
6
Licensing Process & Timeline
Mineral transparency initiatives in Rwanda
- Rwanda started following the enactment of the Dodd-Frank “conflict-minerals” Act
- Mineral traceability in Rwanda use the ITRI/iTSCi ‘tag and bag’ scheme was initiated in late 2010
- The Government passed a mineral anti-smuggling regulations in March 2011
- Since April 2011, 100% of Rwandan minerals are traceable from their mine sites up to their export point
- Since 2012, Rwanda has integrated the Regional Certification Mechanism (RCM) in its mining regulations
- The RCM forms part of the ICGLR Regional Initiative on Natural Resources, adopted by heads of state in December 2010
Non Fiscal Incentives
- Facilitate quick Investment registration
- Facilitation with tax related services and exemptions
- Facilitation with obtaining visas and Work permits
- Notary services provided by Our One Stop Center
- Assigning Key Account Manager to projects registered with in the One Stop Center
- Facilitation to access utilities
Fiscal Incentives
- 0% Corporate Income Tax for Mining companies planning to relocate H/Q’s to Rwanda
- Corporate Income Tax Holiday up to 7 years for investment of at least US$ 50 m
- 15% Preferential Corporate Income tax for projects exporting processed minerals up to 50% of turnover of minerals produced in Rwanda
- Investment allowance of 50% or Accelerated depreciation of 50%
- Capital Gains tax exemption and free repatration of Capital and assets
- Import free on Heavy Machinary used in Mining
- Vat exemption on Mining equipments
Incentive Package to Mining Sector
- Facilitate quick investment registration
- Facilitation with tax related services and exemptions
- Facilitation to access utilities
- EIA Certificates
- Capital Gains tax exemption
- Accelerated depreciation of assets at 50%
- Repatriation of Capital and assets
- Facilitation with obtaining visas and work permits
- Notary services provided by our One Stop Center
- Assigning Key Account Manager to projects registered within the One Stop Center
- 0% Corporate Income Tax for companies planning to relocate H/Q’s to Rwanda
- 0% Corporate Income Tax for companies planning to relocate H/Q’s to Rwanda
- 15% Preferential Corporate Income tax for projects exporting processed minerals up to 50% of turnover of minerals produced in Rwanda
- Import free on Heavy Machinary used in Mining
- Vat exemption on Mining equipments
Contact Us
For any further details/information you may require, please contact:
Mr. Chris Picton Shyaka
Sector Marketing Analyst
Rwanda Development Board
Email: chrispicton.shyaka@rdb.rw
