Rwanda: Africa’s Up and Coming Mining Destination
Rwanda Mines, Petroleum & Gas Board (RMB) RWANDA AT A GLANCE
Population size Govt. & Parliament 12.1 million Presidential republic Bicameral parliament
Official languages GDP per capita Kinyarwanda, USD 703 per capita French, English, Swahili
Literacy/Employment GDP (6 yr growth) 70.5% / 83.3% USD 8.1bn (7.3% p.a.)
Currency/exchange rate Ratings Rwanda Francs (RWF) B+, “stable” - Fitch ~RWF 847/USD B, “stable” - S&P 2 Sources: World Atlas, World Bank, Fitch, S&P - all 2016 except: population and Fitch rating 2017, exchange rate 2018 RWANDA IS …
Safe and secure – 5th safest country to walk at night worldwide Stable – lowest debt ratio in region; stable ... low risk credit ratings High level of governance - #1 govt. transparency inAfrica
2nd fastest growing economy in Africa; 2nd FDI/GDP inregion ... fast growing Most improved nation in human development in the world
2nd for doing business in Africa; 6hr business registration Growing bilingual and educated workforce (~47,000 ... business friendly grad./yr) Modern – 95% network coverage; 4th in global genderequality and modern
Free trade agreements with ~50 countries ... a regional Preferential access to immediate proximity market of 60m Strong African hub potential; highly connected platform African airline 3rd MICE ranking in Africa; +18 ranks in 3 years
... home to rich Rich raw material availability; 17+ agri-inputs natural advantages Highest gorilla population in Virunga Massif; 1.2m tourists
3 Source: Rwanda Development Board (RDB), 2018 ECONOMIC PROFILE
RWANDA DISPLAYS STRONG ECONOMIC GROWTH AND HIGH LEVEL OF INVESTOR CONFIDENCE
Second highest growth in East African region ...... with strong level of FDI versus GDP
Average GDP growth 2010-2016 (%) FDI/GDP in 2016
10.2% 2nd inAfrica 4.3 3.9 3.8 7.3% 3.4 6.8% 6.0% 5.7% 5.3% 2.3 4.0% 1.6
Ethiopia Rwanda Tanzania Kenya EA Uganda SSA Tanzania Rwanda Uganda Ethiopia Kenya Burundi average average
Source: World Bank 2017 4 ECONOMIC PROFILE
HIGH STABILITY REFLECTED BOTH THROUGH BOTH REGIONAL AND INTERNATIONAL STABLE CREDIT RANKINGS
Lowest debt ratio in the region ...... with stable international credit ratings
Public debt to GDP (%) Credit ratings 52.7 48.6 40.5 38.4 35.4 34.6 2017: B+ (stable)
Kenya Ethiopia Tanzania Burundi Uganda Rwanda
2016: B (stable)
5 Source: World Bank, Fitch 2017 rankings, S&P 2016 rankings BUSINESS ENVIRONMENT
Business friendly Multiple incentives – Efficient, Commitment to regulation largely for exporters supported processes foreign ownership
✓ #2 in Africa for Ease of ✓ Preferential corp. ✓ Highly digitalized and ✓ No restrictions Doing Business1 and income tax rate (15% efficient to foreign Global if 50% exported) administration (6 ownership 2 Competitiveness ✓ Accelerated first year hours to register a ✓ No restrictions ✓ #4 least corrupt depreciation rate business) on capital flows Country in Africa 50%3 ✓ Free business ✓ Total effective tax ✓ Exempt capital gains registration lowest in East African & 0% tax if HQ in ✓ One-stop center for Community region Rwanda investors with ✓ Duty-free imports dedicated of machinery & investment inputs4 acceleration team
1. World Bank; 2. WEF; 3. Subject to investing USD50k in business assets; 4. In accordance with EAC customs reg. Source: RDB Investors Presentation 6 MINING FRAMEWORK IN RWANDA RWANDA COMMITTED TO PROMOTING THE MINING INDUSTRY
Strong legal and regulatory framework in place for the mining sector;
Legislation and policies attractive to investors and supportive for foreign direct investment;
Strong government support and a willingness to improve the mining sector;
Ambition to become a regional hub for mineral services, such as processing and beneficiation.
8 INTERLOCKING REGULATORY FRAMEWORK
COMBINATION OF REGULATORY BODIES CREATING A TRANSPARENT MINING CODE
Policy RWANDA MINES, PETROLEUM, GAS, BOARD (RMPGB) Drafting ✓ Responsible for the development of policies, laws, and regulation ✓ Responsible for implementation of the national Policy mining policies and strategies Implementation
Environmental RWANDA DEVELOPMENT BOARD (RDB) Protection ✓ Responsible for supporting sustainable economic growth and development
Economic RWANDA ENVIRONMENT MANAGEMENT AUTHORITY (REMA) Development ✓ Responsible for implementation of environmental policies and laws 9 SUSTAINABILITY AND TRANSPARENCY
RWANDA IS AT THE FOREFRONT OF SUSTAINABILITY AND TRANSPARENCY OF THE MINING SECTOR
SUSTAINABLE DEVELOPMENT OF MINING IN RWANDA (SDMR) ITRI SUPPLY CHAIN INITIATIVE (ITSCI) 3-year technical assistance programme to help support the sustainable growth of “ITSCI’s purpose is to create responsible mineral supply chains that avoid Rwanda’s mining sector, with a focus on artisanal and small mines. Intended contributing to conflict, human rights abuses, or other risks such as bribery.” results include: Managed by the ITA (formerly ITRI) and Tantalum-Niobium International Study • A more professional, open and transparent mining sector; Center (TIC) • A more efficient and economically viable mining sector, in line with More than 21kt of mineral concentrate are being exported under ITSCI’s “bag and environmental best-practice; tag” monitoring programme each year from the region • Increased level of private investment in the sector; and ITSCI is monitoring 342 companies in Rwanda that cover 955 sites, 308 of which are ‘active • Improved incomes of artisanal miners Funded by the British Government’s Department for International Development (DFID) as part of the UK’s aid programme and is being implemented by Cardno Emerging Markets (UK), Ltd
10 RECENTLY REVISED MINING CODE TO SUPPORT GROWTH
CHANGES TO THE MINING CODE RECENTLY UNDERTAKEN TO STRENGTHEN MINING INDUSTRY IN RWANDA
MINING POLICY OBJECTIVES INCLUDE…
Promoting scale and Improvement in environmental, sustainability social and health and safety practices
Facilitating the transition to Promoting value additive modern and efficient mining processing to increase revenue methods Promoting domestic industry to Encouraging greater become a regional hub for mineral foreign direct investment services 11 EFFICIENT LICENCING PROCESS
SIMPLE ROUTE FOR EXPLORATION AND EXPLOITATION LICENCES
Ownership EXPLORATION LICENCE REQUIREMENTS Licence Term Size Renewal Multiple Licenses Permitted Requirements ✓ Minimum requirements for geological, geophysical, geochemical or resource analysis Yes with Exploration 4 Years 400ha None YES activities relinquishments
EXPLOITATION LICENCE REQUIREMENTS Yes with Large scale 15 years 400ha None relinquishments YES Mine ✓ Minimum requirements for proving the economic value of mineral resources ✓ Mine design and planning, ore treatment and
processing Yes with Medium Min 40% local ✓ Social and environment management plan 10 years 100ha relinquishments YES scale Mine shareholding ✓ Infrastructure development plan ✓ Health and safety plan ✓ Employment, skills and technology transfer plan ✓ Compensation and resettlement plan Yes with Small scale 100% local 5 years 50ha relinquishments YES Mine shareholding
12 TRANSPARENT FISCAL REGIME
RWANDA’S MINING POLICY FRAMEWORK’S FOCUSES ON THE OPTIMIZATION OF FINANCIAL BENEFITS THROUGH TRANSPARENCY OF TAXES, ROYALTIES AND OTHER PAYMENTS THAT REFLECT THE VALUE OF MINERAL RESOURCES TO SOCIETY
CORPORATE INCOME TAX ROYALTIES ON BASE METALS 30% 4% ON GROSS VALUE
ROYALTIES ON PRECIOUS METALS ROYALTIES ON GEMSTONES 6% ON GROSS VALUE 6% ON GROSS VALUE
13 INFRASTRUCTURE
RWANDA OFFERS ROBUST INFRASTRUCTURE WITH AN EXTENSIVE ROAD NETWORK, GRID POWER AND GOOD AVAILABILITY OF WATER
GOOD ROAD NETWORK ACROSS THE COUNTRY FURTHER INVESTMENT A KEY PART OF RWANDA’S ECONOMIC DEVELOPMENT AND POVERTY REDUCTION STRATEGY
KIGALI-DAR ES SALAAM PORT US$2.5BN PROJECT TO CONNECT TO TANZANIA’S STANDARD GAUGE LINE, PRESENTLY BEING BUILT IN TWO PHASES; DAR ES SALAAM TO MOROGORO, AND MOROGORO TO MAKUTUPORA
ENHANCED POWER AVAILABILITY & CAPACITY INCREASED CAPACITY AND IMPROVED NETWORK RELIABILITY, ‘PRODUCTIVE USERS’ (INCLUDES INDUSTRY) USAGE FROM 72% TO 100% AS PART OF THE ENERGY SECTOR STRATEGIC PLAN (ESSP) 2018/19 TO 2023/24 WATER WIDELY AVAILABLE 14 GEOLOGICAL ENDOWMENT OF RWANDA INDUSTRIAL AND PRECIOUS METALS
KNOWN MINERALISATION INDUSTRIAL METALS, PRECIOUS METALS AND GEMSTONES AS WELL AS POTENTIAL FOR BATTERY METALS AND RARE EARTH ELEMENTS
World-class 3T mining Precious metals and Gemstones Battery Metals & Rare Earth Elements
73 74 50 97 3 28 Ta W Sn Au Li Ni REE 181 184 119 197 7 59
✓ #1 global Tantalum (Ta), #7 global ✓ Regional gold trend hosts large deposits ✓ Known lithium mineralization in the country Tungsten (W) & #12 global Tin (Sn) ✓ Trend continues across Rwanda, with with good potential for significant discoveries ✓ Dominated by artisanal /small scale known deposits and long mining history ✓ Known world class nickel deposits in the region operations ✓ Limited modern exploration with Eastern parts of Rwanda having potential ✓ Opportunity to consolidate and undertake ✓ Country wide gemstone potential ✓ Region host economic Rare Earth Elements (REE) modern exploration deposits with known REE mineralization in Rwanda
16 RWANDA MINING AREAS AND GEOLOGY
Bugarama Miyove (tungsten) (gold) Gifurwe Bugarura- (tungsten) Rutongo Kuriti-Bibare (tin) (tin-tungsten) Gatumba (tin-tungsten Rwinkwavu (tin)
Rutsiro-Sebeya- Giciye (3Ts)
Bisesero (tin-coltan) Musha-Ntunga (tin-coltan) Nyakabingo Nyungwe Nemba (tungsten) (gold) (tin)
Birambo (gold)
17 Source: ResearchGate.net GEOLOGY OF RWANDA
Rwanda’s tin-tungsten-tantalum (3Ts) and gold mineralisation is related to granitic intrusions that form part of a giant, regional mineral province – the Kibaran Belt – that stretches from northeast Angola, eastern DRC into Rwanda
The Kibaran Belt sits between the Archaean-Palaeoproterozoic Congo Craton to the west, the Archaean-Palaeoproterozoic Tanzania Craton to the east and the largely Palaeoproterozoic Bangweulu Block to the south
The major known metallogenic events of the Kibaran belt can be summarised as follows (Beak Report 2015):
✓ 3T and gold mineralisation associated with the 970 Ma syn- ➢ Rare earth element (REE) and niobium mineralisation tectonic G4 granite magmatic event associated with Neoproterozoic alkaline complexes ✓ Au mineralisation associated with Pan African ➢ Nickel (copper-cobalt) in layered mafic/ultramafic bodies of the (Neoproterozoic) magmatic events 1375 Ma Kibaran magmatic event
Widespread occurrences in Rwanda Initial occurrences in Rwanda with potential for more exploration
18 KNOWN GOLD PROJECTS IN THE REGION
Major gold belt extends from South Kivu (DRC) across Rwanda into Uganda Miyove (390-440koz at 2.8-3g/t Known deposits in Rwanda: Nyamugali Byumba (265koz at 1.48g/t) ▪ Nyungwe (c 200koz mined) ▪ Miyove (c 400koz resource) Prospective area? ▪ Byumba (265koz resource) Birambo
Nyungwe Giteranyi
Namoya (1.88moz at 1.9g/t) Buthinda (136koz at 2.81g/t Twangiza (5.1moz at 1.44g/t Muhwazi Gakere Lusahunga
Kamituga & Mobale (920koz at 3.9g/t)
Operating South Kivu / ManiemaMwenga Reserves development Kampene Matala (213koz at 3.3g/t) Exploration Tora-Kibezi Closed
Bujumbura 19 Source: SNL GEMSTONE DEPOSITS
Sapphire Other gemstones Gold
KIGALI
20 MINING HISTORY OF RWANDA BELGIAN MINES
Mines 1930: cassiterite discovered at Rwinkwavu and Rutongo by Belgians 1931-41: cassiterite/coltan discovered at Bisesero, Gatumba, Ntunga, Mugesera, Bugesera 1933: cassiterite, coltan & wolframite discovered at Rutsiro 1940-1950: wolframite discovered in Gifurwe, Nyakabingo and Bugarama Companies 1930 MINETAIN (Belgian) 1934 SOMUKI (Belgian) 1945 GEORWANDA (Belgian) 1948 COREM (Belgian) 1973 SOMIRWA JV between GoR (49%) and MINETAIN/SOMUKI 1985 SOMIRWA bankrupted by ‘international tin crisis’ 1988 COOPIMAR established by GoR to support artisanal mining 1989 REDEMI established by GoR to restart SOMIRWA operations 2007 REDEMI liquidated after poor performance, mining sector privatised
RMB & RMCA Project is digitizing historical information from Belgian mines for the benefit of mining companies and investors
Source: Cartes des Gites Mineraux du Rwanda (1982) 22 MINERAL PROCESSING: TIN & TANTALUM
LUNA TIN SMELTER Ta-Nb REFINERY OTHER OPPORTUNITIES East Africa’s only tin smelter PRG plc founded in 2015 to address the PPP opportunities to set up processing future needs of supply chain security of plants for tungsten JV between Luma Investment Group of critical metals in Western based Poland (75%) and State-owned Ngali PPP opportunities to set up gemstone manufacturing Holdings (25%) cutting and polishing centre for Amethyst, Active in both mining and processing in Tourmaline, Sapphires, Jasper, Quartz, and Aiming to be an environmentally friendly, Rwanda Opal socially responsible and conflict free Developing a modern tantalum-niobium PPP opportunities for setting up mining Initial capacity of 380tpm of cassiterite refinery on the outskirts of Kigali in the equipment and laboratory service centre JV to explore and develop its own mining Bugesera industrial zone projects Using state of the art proprietary Tin metal to be exported to Luma’s technology to produce a series of products existing client base in Europe Tantalum Tantalum hydroxide pentoxide Uranium oxide Niobium K-Salt (yellow cake) pentoxide First production Q1 2019 at 40 tonnes of concentrate per month – increasing to 120 tonnes of concentrate within 18 months
23 NUMEROUS ACTIVE FOREIGN MINING COMPANIES FOCUSED ON EXPLORATION AND DEVELOPMENT
Rutongo and Nyakabingo projects
Power Resources Rukugarata Group 3T project Musha-Ntunga 3T project
KIGALI Bisesero 3T project
Nyanza 3T project (Mawarid)
24 PROSPECTIVE TARGET AREAS (PTA’S) MAJOR EXPLORATION ACTIVITY / STUDIES
EXTENSIVE EARLY STAGE EXPLORATION WORK UNDERTAKEN OVER A NUMBER OF YEARS
SANDERS (Canada) VAN STRAATEN BEAK (GERMANY) B2B (RUSSIA) Airborne magnetic RMCA (BELGIUM) NEW RESOLUTION INTERNATIONAL 3 PTAs studied, mapping, Airborne magnetic, and radiometric 1:250k and 1:100k GEOPHYSICS (SOUTH AFRICA) MINERALS (CANADA) soil/stream/rock/bulk radiometric & EM survey geological maps Airborne gravity survey Carbonatite exploration samples surveys
1968 1987 2006 2010 2012 2015 2017 1981 1991 2008 2012 2015 2016
UNDP AND GOR BRGM (FRANCE) ADROITEC LTD (INDIA) PGW (CANADA) BEAK (GERMANY) RSC (AUSTRALIA) BRIDGEPORTH (UK) Stream sediment 1:250k mineral Remote sensing survey Interpretation of NRG 4 PTAs studied, 3 PTAs studied, mapping, Interpretation of airborne sampling for entire deposit map of data, 21 Potential mapping, surface EM, soils, geophysical survey data country Rwanda Target Areas (PTAs) soil/stream/rock trenching identified samples
26 PROSPECTIVE TARGET AREAS (PTAS)
In April 2010 Paterson, Grant & Watson Ltd (PGW) published a Mineral Prospectivity Report and Prospectivity Map (1:250,000) for Rwanda
A total of 21 Prospective Target Areas (PTAs) were identified as having ‘excellent potential for Sn, W-Nb-Ta and/or Au-base mineralization’
The PTAs were identified following an interpretation of New Resolution Geophysics’ (NRG) 2008 airborne geophysical survey in combination with a review of all other existing geoscience data
This presentation outlines the prospectivity of each PTA based on a high- level review of work undertaken to date in combination with the distribution of known mining operations and reported production rates
27 Source: PGW (2010) and RMB CONCLUSIONS FROM PRELIMINARY REVIEW OF PTA’S
Exploration stage KAG1 Advanced Economic studies, resource estimates, drilling & bulk samples KAG2 R1 Intermediate Trenching, ground geophysics, stream sediments & soils G2 R4 KIG3 R2 KIG2 Early Airborne geophysics, geological R3 RWK1 mapping, satellite imagery G1 KIG1 N1 KI1 N2 BUG2 KIB1 KI2 BUG1
N3 KA2
KA1
28 RANKING OF PTA’S BASED ON NUMBER OF MINERAL DEPOSITS (3T’S & GOLD)
KAG1
60 KAG2 >30 >10 to 30 >5 to 10 >0 to 5 zero 50 R1
40 G2 R4 KIG3 30 R2 KIG2 R3 RWK1 20 G1 KIG1
10 N1 KI1 BUG3 KIB1
0 KI2 N2 BUG2
N2
R-1 R-2 R-4
R-3 BUG1
G-1 G-2
N-3 N-1
KI-2 KI-1
KA-2 KA-1
KIB-1
KIG-2 KIG-3 KIG-1
KAG2 KAG1
BUG-1 BUG-3 BUG-2 RWK-1
N3 KA2
KA1
29 GOLD PROSPECTIVITY VS PTA’S
Miyove: 80-130koz mined by the Belgians in the Byumba 1930s-40s, some exploration in 1980s, Rogi Mining estimated resource of 4.4-5.5mt at 2.77-3.01g/t for 390-440koz (Russian Standards) Known gold occurrence
PTA thought to have gold potential
Birambo Artisanal mines (Tanzania)
Nyungwe: 200-225koz mined at Nyungwe between 1932 and 1985. In the 1980s 6000-10,000 workers were producing 100-300kg of gold per year.
Kamituga (DRC)
Twangiza (DRC) 30 RUHENGERI & RUHENGERI NORTH: R-1
PTA R1
Location 80km NNW of Kigali, in the Burera, Gakenke and Rulindo districts
2 Size 500km
Active large scale licence over the Gifurwe deposit (historic Belgian Licence situation Gifurwe mine) and active small scale licence at Miyove (held by Ngali) Existing non-compliant resource at Miyove of c 400koz at 2.9g/t potential JV opportunity – if PTA was extended east would also Miyove Opportunity include Byumba (265koz at 1.5g/t). Known gold mineralisation within Gold R1 a regional significant gold belt – Miyove the largest known gold Project deposit in Rwanda Existing mines 30+ (14 mining licences, 2 applications)
Production N/a
Target minerals Gold & 3Ts Major structural feature and possible underlying granite - altered Geology metasediments + possible Au target northwest of Miyove Limited work undertaken across the PTA beyond geophysical Exploration undertaken interpretation and UN geochem, although drilling has outlined a resource at Miyove Good road access (laterite) - water available and power lines cross Infrastructure the target area Reports PGW (2010), B2B (2017), Interra Exploration (2010), Bridegporth (2017) 31 NYABISINDU & BUTARE: N-2
Gatumba PTA N2 mining district
Location 50km southwest of Kigali, mostly in the Ruhango & Muhanga districts
2 Size 450km
Some active exploration licences and artisanal mining licence Licence situation N2 applications Limited further work needed (eg infill trenching) ahead of drill target Nyanza Project selection. Major new artisanal mining area that offers an opportunity Opportunity (Mawarid) to consolidate licences and undertake a fast-tracked exploration programme. Mawarid’s Nyanza project on northeast border of N3 Existing mines 40+ (2 mining licences and 8 applications) N3 Production N/a
Target minerals 3Ts Southerly extension of granite from Gatumba mining area (historic Geology Belgian operations), with significant structural complexity and known 3T occurrences Airborne geophysics, recent additional surface geophysics and Exploration undertaken geochem, including trenching Infrastructure Good road access and water/power available
Reports PGW (2010), Beak (2013), RSC (2015), B2B (2017) & Bridgeporth (2017)
32 KIGALI: KIG-3
PTA KIG-3
Location 50km northeast of Kigali in the Gasibo and Kayonza districts KIG-3
2 Size 100km
Licence situation Only small scale mining applications; potentially an open opportunity Potential for extensions along strike (NW and SE) of the Kuluti deposits (Belgian mining area) – could also extend PTA to the west to Opportunity incorporate Bugarura. Identified by RMB as key exploration project given there are no licence holders within the PTA and the opportunity is ‘open’ Existing mines 20+ (4 applications)
Production N/a
Target minerals 3Ts Known 3T mineralisation hosted by Nyabugogo Formation Geology metasediments Limited work undertaken beyond geophysical interpretation and UN Exploration undertaken geochem Infrastructure Good road access and water/power available
Reports PGW (2010), Beak (2013/2015) & B2B (2017)
33 Rwanda Mines, Petroleum & Gas Board (RMB)
No 27 KN 4 Avenue, P.O.Box 937, Kigali Rwanda
Hon. Francis Gatare, Chief Executive Officer (CEO); [email protected]
Rajkumar Singh, Strategic Adviser to the CEO; [email protected]
Joseph Butera, Mineral Economist & Investment Specialist; [email protected]
For more info on RMB: http://www.rmb.gov.rw/ For more info on Mining Activity: http://portals.flexicadastre.com/rwanda/