Canadian company to start exploration for minerals in Burundi
Sunday November 26 2017
According to geological research carried out in the country, Burundi holds mineral reserves of sulphide nickel, rare earth, iron, titanium, vanadium, gold, wolframite and many others. PHOTO FILE | NMG
A Canadian mining company has been awarded contracts to explore for minerals in Waga-Nyabikere and Mukanda areas in central Burundi.
CVMR Energy Minerals Inc signed an agreement with the government in Bujumbura to explore in Waga-Nyabikere, which is believed to have $30 billion worth of minerals, including nickel, iron, copper and cobalt and Mukanda. The area is estimated to have mineral reserves worth $600 million.
The Burundi government will have a 25 per cent stake in the mining and refining operations.
“We do not intend to ship the ores. We will refine them here and then ship the final products to international markets,” said Kamran M. Khozan, chief executive of CVMR.
He said that his company has already signed agreements with two engineering firms, one based in Burundi the other from South Africa, to help in the operations.
A feasibility study of the sites will start in January. When fully operational the company is expected to create more than 1,500 technical jobs in the country.
In addition, the University of Burundi and CVMR have agreed to establish an international centre for research and development in vapour metallurgy, and to create a department of metallurgical science and engineering at the campus.
According to geological research carried out in the country, Burundi holds mineral reserves of sulphide nickel, rare earth, iron, titanium, vanadium, gold, wolframite and many others. Minerals currently exported from the country include gold, Colombo-tatalite, cassiterite and wolframite.
Hydrocarbons and hydrothermal vents have also been found. Lateritic nickel is currently under concession, and rare earths have been evaluated and mining has started. Phosphates, carbonatites, kaolin, limestone, peat, quartzite and feldspar have also been identified.
The peat exploitation is carried out by state-owned Office Nationale de la Tourbe, which was set up to meet the needs of household and industrial fuels.
In October, the Rainbow company in Burundi started exploration of rare earths in Mutambu and Kabezi regions, on the outskirts of Bujumbura. The company is said to have invested $5 million, and will pay four per cent of its annual turnover and 30 per cent as income tax.