2024-01-30 18:24:00
(Ecofin Agency) – In 2022, Rwanda generated $772 million in export revenues in the mining sector. As the government seeks to double this figure, Rio Tinto’s interest in the country’s lithium potential represents a new development.
The Rwandan government announced on January 29 the signing of a memorandum of understanding with the Anglo-Australian mining group Rio Tinto. The partnership covers the exploration and exploitation of lithium in the Western Province.
GOVERNMENT OF RWANDA AND RIO TINTO MINERALS DEVELOPMENT LIMITED SIGN A MEMORANDUM OF UNDERSTANDING (MOU). pic.twitter.com/m38lkVUiVX
— Government of Rwanda (@RwandaGov) January 29, 2024
It should be noted that the mining group is not its first investment in Rwandan lithium, as it has already joined forces in 2023 with the British mining junior Aterian to devote at least $7.5 million to the exploration of the lithium over five years. The funds are expected to enable Rio Tinto to acquire up to a 75% interest in the HCK project.
However, no details were given on the duration of the agreement signed with the government nor on the investment that Rio Tinto will make over the period. “The arrival of Rio Tinto demonstrates Rwanda’s desire to further unlock the potential of the country’s mining sector. This development is part of our ongoing efforts to boost and modernize Rwanda’s mining sectorsaid Yamina Karitanyi, CEO of the Rwanda Mines, Oil and Gas Board.
While the Rwandan government wants to double annual mining revenues to $1.5 billion in 2024, the arrival of Rio Tinto constitutes a positive signal in achieving this objective in the years to come. For the moment, no declaration of lithium reserves has yet been made in Rwanda, but companies are actively exploring the country’s potential.
Also read:
19/12/2023 – Rwanda becomes the EIB’s first African partner for the supply of critical minerals
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