Mining

• The Law on Mining and Quarry Operations (58/2018); and
• Several ministerial orders, prime ministerial orders and regulations issued by the regulatory authority and listed in question 1.3.

The last legislative review took place on 13 August 2018.

The following legislative and regulatory provisions apply:

• Prime Ministerial Order 079/03 of 26 July 2019 determining the structure and functioning of the committee in charge of assessment of application for licences and disputes related to mining and quarrying;
• Ministerial Order 007.01 of 19 July 2019 repealing ministerial orders related to mining and quarry operations;
• Ministerial Order 013 MOJ.AG.19 of 16 July 2019 determining the requirements for granting authorisation to import, manufacture, transport, trade in or use dynamite in mining and quarry operations;
• Regulation of the Chief Executive Officer 001 MINES.RMB.2019 of 18 July 2019 determining the nature, amount and deposit of the environmental rehabilitation guarantee;
• Regulation of the Chief Executive Officer 002 MINES.RMB.2019 of 18 July 2019 determining the provision of services relating to mining and quarry operations;
• Regulation of the Chief Executive Officer 003 MINES.RMB.2019 of 18 July 2019 determining the content of mineral processing and trading licences and the modalities of their grant;
• Regulation of the Chief Executive Officer 004 MINES.RMB.2019 of 18 July 2019 determining the format and content of a mineral licence and the content of an agreement with a mining or industrial quarry licence holder;
• Regulation of the Chief Executive Officer 005 MINES.RMB.2019 of 18 July 2019 determining the potential mining area criteria for categorisation of mine modalities and the requirements for mineral licence application and for tenders;
• Regulation of the Chief Executive Officer 006 MINES.RMB.2019 of 18 July 2019 determining the volume of mineral ore samples;
• Regulation of the Chief Executive Officer 007 MINES.RMB.2019 of 18 July 2019 determining the categories of quarry requirements for the acquisition of quarry licences and reporting; and
• Ministerial Order 004/Minicom/2010 of 14 September 2010 determining the modalities of environment conservation in mining and quarry operations.

• Mineral traceability with the progressive rollout of the ITRI Tin Supply Chain Initiative; and
• The Regional Certification Mechanism, which is part of the International Conference on the Great Lakes Region’s Regional Initiative against the Illegal Exploitation of Natural Resources.

The government of Rwanda has entrusted the implementation of mining laws, regulations and policies to the Rwanda Mines, Petroleum and Gas Board (RMB). Its responsibilities include:

• implementing mining (and petroleum and gas) policies, laws and strategies;
• monitoring and coordinating the implementation of strategies relating to mines, petroleum and gas; and
• supervising and monitoring private and public entities conducting mining, trade and other mineral operations.

Other institutions play key roles in the sector, such as the following:

• The Rwanda Development Board: This is in charge of:
• • facilitating investment;
  • negotiating on strategic projects;
  • issuing investment certificates; and
  • providing related incentives.
• Rwanda Environment Management Authority: This is in charge of:
• • setting and enforcing environmental standards;
  • inspecting mining projects; and
  • rehabilitating exhausted mines and quarries.
• Local authorities (districts and sectors): These can issue non-commercial quarry licences and small-scale quarry licences at the district and sector level.

The regulators’ general approach is to promote the growth of the mining sector in Rwanda. Their mission is also to ensure the following in the mining sector:

• transparency;
• health and safety standards;
• protection of the environment; and
• professionalism and gender equality.

The mining sector in Rwanda dates back to the early 1920s, when Belgian companies started mining exploration. Since the early 2000s, the industry has become professionalised and modernised.

The main minerals mined in Rwanda are tin, tungsten and tantalum, as well as some gold, peat and gemstones.

Over the years, Rwanda has become one of the world’s top producers of tantalum. Tantalum is used in the electronics industry.

The key players in recent years are:

• Wolfram Mining Processing Ltd;
• Piran Resources;
• Ngali Mining Ltd;
• Luna Smelter Ltd;
• Aldango Ltd;
• Rutongo Mines Ltd;
• Minerals Supply Africa Ltd;
• New Bugarama Mining Company;
• Mawarid Mining Rwanda Ltd; and
• Power Resources Group.

The law distinguishes between the following types of mineral licences:

• exploration licences;
• mining licences:
• • small-scale mining licences;
  • medium-scale mining licences; and
  • large-scale mining licences;
• mineral trading licences; and
• mineral processing licences.

An exploration licence is required in order to undertake prospecting and exploration activities in Rwanda, irrespective of the type of mineral or the location of the activity.

The government of Rwanda, through the chief executive officer (CEO) of the Rwanda Mines, Petroleum and Gas Board (RMB), has designated potential mining areas in which exploration activities can be carried out. The general conditions for exploration of a potential mining area are:

• the submission of geological and geo-physical analysis; and
• the availability of geochemical or mineral resources.

An application for an exploration licence must be submitted to the CEO of the RMB in the prescribed form, together with the following documents:

• a business registration certificate;
• a geological and geophysical analysis;
• a geochemical or mineral resource analysis;
• a programme of exploration operations and associated costs;
• a tax clearance certificate issued by the Rwanda Revenue Authority;
• proof of the applicant’s financial capacity issued by a financial institution or audited financial statements for at least the last two years;
• proof of the applicant’s technical capacity, including its proficiency and the CVs of key personnel;
• an employment and skills transfer plan; and
• maps in the prescribed format.

The applicant will be notified of the decision within 90 days of submission of a complete file.

Exploration rights are granted to legal persons and no specific requirements or restrictions apply to foreign operators.

• Exploration licence:
• • Licence fee: RWF 900,000
  • Renewal fee: RWF 1.1 million
• Mining licence (large scale):
• • Licence fee: RWF 4.5 million
  • Renewal fee: RWF 9 million
  • Annual fees: RWF 1.8 million
• Mining licence (medium scale):
• • Licence fee: RWF 2.7 million
  • Renewal fee: RWF 5.4 million
  • Annual fees: RWF 900,000
• Mining licence (small scale):
• • Licence fee: RWF 1.8 million
  • Renewal fee: RWF 3.6 million
  • Annual fees: RWF 450,000

An exploration licence is valid for an initial period of up to four years, renewable once. To renew an exploration mineral licence, the holder must apply in writing in the prescribed form at least 90 days before its expiry and provide the following details:

• a report on the exploration operations carried out as of the date of the application and associated costs;
• a detailed report of the operations carried out in any portion of the licence area, accompanied by the results, data, analysis and interpretation thereof;
• a programme of operations to be carried out during the period of renewal and the estimated cost thereof; and
• a plan identifying the part of the licence area for which renewal is sought.

The rights of the holder of an exploration licence are as follows:

• the right to explore for the minerals in respect of which the licence is granted;
• the right to drill boreholes and make such excavations as may be necessary;
• the right to collect from the exploration licence area mineral samples for the purpose of analysis and valuation; however, the quantity of such samples should not exceed the limit determined through regulations issued by the competent authority;
• the right to construct necessary buildings; and
• the primary right to apply for a mineral licence for any portion of the exploration licence area in which mineral deposits are discovered, upon fulfilment of the required conditions for the mineral licence.

The obligations of the holder of an exploration licence are as follows:

• to commence exploration operations within 90 days of the date of issuance of the exploration licence;
• to submit a report to the Rwanda Mines, Petroleum and Gas Board (RMB) every six months on the progress of the exploration operations as approved in the mineral exploration plan;
• to train employees in accordance with the terms and conditions of the licence;
• to immediately notify the RMB of the discovery of any mineral deposit that is not subject to the licence right;
• to keep records of exploration operations at the holder’s address in Rwanda indicating the following:
• • number of boreholes drilled;
  • strata penetrated, with detailed logs of such strata;
  • minerals discovered;
  • all results of the geochemical and geophysical analysis;
  • the results of identification and analysis of minerals collected from the exploration area for such purposes;
  • the geological interpretation; and
  • details of the expenditure incurred under the agreed annual plan of mineral exploration operations;
• to submit to the RMB every year, no later than 90 days after the date of issuance of the licence for that year, an audited statement of expenditure incurred on agreed exploration operations;
• to notify the RMB of any amendments it wishes to make to the agreed mineral exploration plan. The RMB may approve or reject the proposed amendments within 60 days of receipt of the proposal;
• to notify and submit to the relevant body, within 30 days, any historical or any other significant object discovered in the course of the exploration activities;
• to remove temporary buildings or other facilities within 90 days of the expiry or termination of the licence;
• to fill or otherwise make safe any boreholes and excavations made during the course of the exploration operations; and
• to provide a copy of any document to the RMB or any authorised officer upon request.

If at least half of the licensed area is relinquished, the annual licence fee upon renewal remains the same as that paid in the previous year.

Licences may be transferred by assignment as part of a company share transfer, subject to applying for such transfer to the RMB. Upon transfer, the transferee will assume all rights, responsibilities and obligations of the transferor.

The application for transfer must contain the following information:

• a written application indicating the licence holder’s intention to transfer the licence;
• the minutes of the meeting held by the shareholders or members approving the transfer, made in the presence of a notary authorised by the government;
• a profile of the transferee and the transferee’s experience in the mining sector;
• a certificate of registration of the transferee;
• a tax clearance certificate for the transferor from the Rwanda Revenue Authority;
• a document indicating the value of the transaction between the transferor and the transferee;
• a document disclosing any other relations between the transferor and transferee or other common business interests; and
• a document indicating the transferee’s commitment to uphold the transferor’s obligations.

The holder of an exploration licence has a priority right to apply for a mineral licence on any portion of the exploration licence area in which a mineral deposit is discovered, upon fulfilling the required conditions for a mineral licence.

The ownership of mining rights in Rwanda is acquired by obtaining a mining licence issued by the Rwanda Mines, Petroleum and Gas Board (RMB).

The key requirements in order to apply for a mining right are as follows:

• the economic value of the mineral resources in the mining area;
• a mine design and mine development programme;
• a mineral processing plan;
• a social and environment management plan prepared after the approval of an environmental and social impact assessment;
• an infrastructure development plan;
• a health and safety plan for employees;
• an employment, skills, and technology transfer plan; and
• a compensation and resettlement plan.

See the fees for mining licences set out in question 3.5.

A mining licence is valid for an initial period of up to 15 years, renewable more than once for subsequent periods of up to 15 years.

An applicant for renewal of a mining licence must apply writing in the prescribed form at least 90 days before the expiration of the licence and provide the following details:

• the proved, estimated or inferred mineral reserves, verified by an independent consultant at the cost of the applicant and approved by the competent authority;
• the capital investment to be made, the mining operation costs and revenue forecasts in respect of the renewal period;
• the mining operations proposed to be carried out during the renewal period;
• any expected changes in the method of extraction and processing of mining products; and
• the likely social and environmental impacts, as well as proposed mitigation and compensation measures.

Mining rights are granted to legal persons. requirements or restrictions imposed on foreign operators.

No indigenous requirements apply with regard to mining rights.

The government of Rwanda, through the RMB, is responsible for enforcing the applicable mining laws and regulations. Its tasks include:

• implementing and advising the government on national policies, laws and strategies relating to mines, petroleum and gas;
• monitoring and coordinating the implementation of strategies relating to mines, petroleum and gas; and
• supervising and monitoring private and public entities that conduct mining, trade and other mineral operations.

In addition, the state plays a significant role in promoting:

• foreign investment (through the granting of investment incentives) through the Rwanda Development Board; and
• the protection of the environment through the Rwanda Environment Management Authority.

Both of these have relevance for the mining sector.

In addition to a mining licence, a mining agreement between the licence holder and the competent authority determines the specific conditions for exploitation in a potential mining area.

See the conditions for the transfer of mining licences in question 3.9.

Yes, security can be taken over mining rights.

In relation to the closure or abandonment of a mining right, the operator must establish a management plan which must be approved for the closure of the mine and must include the following details:

• the reasons for closure;
• a plan for the rehabilitation of the infrastructure area;
• the methods for closing the dumping areas;
• a plan for closing underground constructions and dangerous excavations; and
• a plan for maintaining the closed site until the closing certificate is issued.

The law distinguishes between the following types of mineral licences:

• exploration licences;
• mining licences:
• • small scale;
  • medium scale; and
  • large scale;
• mineral trading licences; and
• mineral processing licences.

The owners or lawful occupiers of land that is identified as a potential mining area will be compensated in accordance with the Rwandan expropriation law before any mining activities commence.

Rwandan law does not regulate this matter.

Rwandan law is not prescriptive on this matter.

No there are none.

No answer submitted for this question.

Before commencing mining operations, the holder of a mining licence must submit an approved environmental impact assessment and social welfare report.

A monthly report must be submitted which explains how the following issues are managed:

• soil degradation that is likely to cause erosion or affect socio-economic activities;
• the risk of soil contamination;
• the prevention of contamination caused by previous activities;
• the risk of instability of banks; and
• environmental risks resulting from earthquakes.

In relation to the closure of the mine, the operator must establish and obtain approval of a management plan which includes the following details:

• the reasons for closure;
• a plan for the rehabilitation of the infrastructure area;
• the methods for closing the dumping areas;
• a plan for closing underground constructions and dangerous excavations; and
• a plan for maintaining the closed site until the closing certificate is issued.

The law provides for the imposition of fines on, and the imprisonment of, operators and individuals.

The Rwanda Environment Management Authority.

While the government of Rwanda, through the Rwanda Mines, Petroleum and Gas Board, considers mining as a key driver for the economy, environmental conservation is also among its top priorities.

The key health and safety requirements which apply to operators in Rwanda are as follows:

• Ensure that the mine is commissioned, maintained and decommissioned in a manner that does not compromise the health and safety of workers and other people; and
• Ensure that all persons working at the mine have the necessary skills, competence and resources to carry out their work safely and to ensure the safety of others.

Operators must notify:

• the Rwanda National Police;
• the Rwanda Investigation Bureau; and
• the Rwanda Mines, Petroleum and Gas Board (RMB).

The law provides for the imposition of fines on, and the imprisonment of, operators and individuals.

It is recommended that operators adopt international best practices in Rwanda in relation to health and safety.

The RMB.

While the government of Rwanda, through the RMB, considers mining as a key driver of the economy, health and safety are also among its top priorities.

The processing and refining of minerals are subject to a licence granted by the Rwanda Mines, Petroleum and Gas Board (RMB). An application for a mineral processing or refining licence must be submitted to the chief executive officer (CEO) in the prescribed form, together with the following documents:

• the applicant’s business registration certificate;
• a profile of the applicant;
• the applicant’s business plan;
• a tax clearance certificate from the Rwanda Revenue Authority;
• proof of the financial capacity to carry out the mineral processing activities;
• proof of the technical capacity to carry out the mineral processing activities; and
• any other relevant information or documents as may be required by the CEO.

The export of minerals is subject to a licence granted by the RMB. An application for a mineral trading licence must be submitted to the CEO in the prescribed form, together with the following documents:

• the applicant’s local business registration certificate;
• a profile of the applicant;
• the applicant’s business plan, consisting of:
• • a schedule of activities to be carried out under the licence and corresponding timelines;
  • the technologies to be used;
  • the costs; and
  • the manner of carrying out the activities;
• a tax clearance certificate from the Rwanda Revenue Authority;
• proof of a deposit of the Rwandan franc equivalent of $250,000 held in a local bank as proof of the applicant’s financial capacity to carry out the trading activities; and
• any other documents as may be required by the CEO.

The applicable mineral taxes are as follows:

• 4% of the norm value for base metals and other mineral substances of that kind;
• 6% of the norm value for precious metals of gold category and other precious metals of that kind; and
• 6% of the gross value for precious metals of diamond category and other precious stones of that kind.

The following tax incentives are available for mining operators, upon the fulfilment of certain requirements:

• a 0% corporate income tax rate if a mining company relocates its headquarters to Rwanda;
• a corporate income tax holiday for up to seven years for an investment of at least $50 million;
• a 15% preferential corporate income tax rate for projects exporting processed minerals where up to 50% of the turnover of minerals is produced in Rwanda;
• an investment allowance of 50% or accelerated depreciation of 50%;
• a capital gains tax exemption and free repatriation of capital and assets;
• tax-free imports of heavy machinery used in mining activities; and
• a value-added tax exemption on mining equipment.

In line with the Investment Code of 2021, prospective mining operators may seek to negotiate the tax incentives mentioned in question 9.2, as well as other specific incentives in line with the law, by demonstrating the following:

• The mining operation will have a strategic impact on the economy; and
• It meets one of the following criteria:
• • It is an anchor investment with first-mover demonstration effects;
  • It will create a significant impact on the value chain in the mining sector;
  • It contains a proof of concept for a new way of doing things or a new strategy;
  • It will develop market-creating innovations which make essential products simple and affordable and improve livelihoods of the broader population; or
  • It is an investment of significant scale in terms of the investment amount, production outputs or number of jobs created.

Yes. A number of reforms have been introduced by the new Tax Law of 2023 which may have an impact on mining companies and their staff, including the following:

• changes in the tax brackets for professional income tax (applicable to employees);
• changes in the scope of deductible expenses;
• the conditions for persons to be considered a tax resident in Rwanda; and
• certain tax incentives linked with membership of the Kigali International Financial Centre.

In addition, in recent years, Rwanda has entered into double taxation avoidance agreements with a number of countries that may impact on foreign mining investors in their country of residence. These include South Africa, Singapore, Qatar, Morocco, Luxembourg and Jersey, among others.

International arbitration, and increasingly arbitration before the Kigali International Arbitration Centre.

Breach of contractual obligations.

Bay View Group LLC v Republic of Rwanda (ICSID Case ARB/18/21).

The mining sector in Rwanda is developing at a fast pace and mining is a priority sector for the economy, contributing significantly to foreign exchange revenues.

The objective of the government of Rwanda, through the Rwanda Mines, Petroleum and Gas Board, is to increase annual mineral revenues, including through further legislative reforms where necessary. From experience, the Rwandan government is always open to suggestions from professionals and stakeholders on how to improve regulations in line with international best practices.

The ambition of the government of Rwanda is to develop the mining sector to become a mineral processing hub for the region. A number of incentives have been introduced in the past two years to position Kigali as a favourable location for holding companies, as well as a regional headquarters location. Investors will also find that the ease of fund repatriation makes it simple to conduct mining or mineral processing operations from Rwanda.