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Kigali seeks Interpol’s help to end minerals theft at Dar port

Saturday December 06 2014
coltan

Rwanda has sought the support of Interpol to end the theft of its export minerals at the Dar es Salaam port. TEA GRAPHIC | NATION MEDIA GROUP

Rwanda has sought the support of Interpol to end the theft of its export minerals at the Dar es Salaam port.

The country’s plans to double its annual mineral revenue to $400 million by 2017 hangs in the balance, with exporters citing the challenges weighing down the sector.

These challenges include global buyers rejecting Rwandan minerals on the grounds that they could be from the Democratic Republic of Congo, and theft of consignments at Dar es Salaam Port.

The theft of Rwandan minerals came to the fore in March when Mineral Supply Africa (MSA) lost a container of coltan at the Dar es Salaam port valued at around $760,000.

READ: Consignment theft exposes rot at Dar port
Rwanda is now seeking the services of Interpol to recover the minerals.

“We have not been successful in recovering our minerals lost at the Dar es salaam port and we are glad Interpol is taking over the case,” said David Bens, managing director of MSA.

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READ: Another Rwandan minerals container stolen at Dar port

As part of the campaign to end the conflict in DRC which is linked to the minerals trade and has claimed millions of lives over the years, the international market has introduced strict traceability measures.

Consequently, cassiterite (tin), tungsten (wolfram) and tantalum (coltan) from DRC’s neighbours for example, must be traced to isolate conflict minerals which are often smuggled through rebel movements and militias.

READ: Miners now protest stringent tagging process

It was on traceability grounds that Rwandan wolfram was rejected by Australian processors for the better part of this year.

“For three months Rwanda’s minerals were not being bought in the European market, which is our biggest mineral export market,” said Evode Imena, Rwanda’s state minister for mines.

As a result, revenues from mineral exports dipped 18 per cent from $226 million in December 2013 to $207 million this year. The sector is Rwanda’s second foreign revenue earner after tourism.

READ: Embargo hurting trade in minerals

In order to boost their revenues miners are now calling for concessions and incentives.

Through their advocacy body Rwanda Mining Association (RMA), the miners have written to the Ministry of Finance to review the royalty fees downwards from 4 per cent to 2 per cent, arguing that they are already spending money on corporate social responsibility including building roads, schools, and health centres, as well as providing safe drinking water and paying local government levies.

Jean Malic Kalima, the chairman of RMA said talks were ongoing with the government.

“So far, traceability fees have been reduced to $160 per tonne of tin, and tantalite to $200 per tonne,” said Mr Kalima.

Other challenges facing the sector are the lack of sufficient financing, skills gap and low production.

The country has slightly over 20 geologists who are shared by the 500 licensed mining companies and government.

The RMA secretary Marie Louise Mukakalisa said the natural resources ministry employs about 10 of the experts, while that of mining has just four geologists.

Miners say that the problem is compounded further by the fact that the older more experienced geologists prefer consultancy work with the government thereby starving the private sector of skilled manpower.

The lack of financing is also hurting the growth of the mining sector which needs huge investment. Banks do not want to work with the industry arguing that it’s too risky.

Artisanal mining and poor road network in production areas contribute to low production in the country.

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