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Economic Contributions of Artisanal and Small-Scale Mining in Rwanda: Tin, Tantalum, and Tungsten

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Economic Contributions of Artisanal and Small-Scale Mining in Rwanda: Tin, Tantalum, and Tungsten Economic Contributions of Artisanal and Small-Scale Mining in Rwanda: Tin, Tantalum, and Tungsten January 2018 This document is an output from a project funded by the UK Department for International Development (DFID) through the Research for Evidence Division (RED) for the benefit of developing countries. However, the views expressed and information contained in it is not necessarily those of, or endorsed by DFID, which can accept no responsibility for such views or information or for any reliance placed on them. Contacts: Pact Global UK Ravenswood, Baileys Lane Westcombe, Somerset BA4 6EN UK +44 (0) 7584651984 [email protected] [email protected] Alliance for Responsible Mining – ARM Calle 32 B SUR # 44 A 61 Envigado – Colombia +57 (4) 332 47 11 [email protected] [email protected] Authorship: This report was prepared by Dr Maria Laura Barreto (team leader, legal aspects), Patrick Schein (economic aspects), Dr Jennifer Hinton (technical and social aspects), and Dr Felix Hruschka (context, mapping and compilation) as part of the EARF project ‘Understanding the Economic Contribution of Small-scale Mining in East Africa’ covering Kenya, Rwanda, and Uganda. The authors wish to acknowledge the important research assistance of Elizabeth Echavarria and Marina Ruete from ARM. Special thanks are extended to the project’s Expert Advisors Majala Mlagui (Kenya), Stephen Turyahikayo (Uganda), and Augustin Bida (Rwanda); Pact staff Jacqueline Ndirangu and Ildephonse Niyonsaba; Project Co-Managers Cristina Villegas of Pact and Géraud Brunel of ARM; the DFID EARF leadership who funded this study; and the in-country DFID representatives of Uganda, Kenya, and Rwanda, with whom the researchers met while conducting in-country assessments. About Pact and ARM: International not-for-profit organisations Pact and ARM are jointly responsible for this report’s contents. Both organisations are independent yet partner on a project by project basis to promote and achieve excellence in natural resource management, improve social and environmental responsibility within artisanal and small-scale mining, and assist communities to gain lasting benefit from the more sustainable use of the natural resources around them. The Economic Contributions of Artisanal and Small-Scale Mining in Rwanda: Tin, Tantalum, and Tungsten Contents Abbreviations and Acronyms .................................................................................................................i Executive Summary...............................................................................................................................iii Context iii Purpose and Methodology .......................................................................................................... iii Key Findings ............................................................................................................................... iv Recommendations ....................................................................................................................... v 1. Introduction ........................................................................................................................................1 1.1. Context 1 1.2. Purpose of the Study .............................................................................................................1 1.3. Methodology ..........................................................................................................................2 1.3.1. Limitations ............................................................................................................2 2. The ASM Context in Rwanda ............................................................................................................3 2.1. Country Overview ..................................................................................................................3 2.1.1. Political Context ..................................................................................................3 2.1.2. The Economy .....................................................................................................5 2.1.3. Human Development ..........................................................................................5 2.2. The Minerals Sector ..............................................................................................................6 2.2.1. Sector Overview .................................................................................................6 2.2.2. Political and Security Context of the Mining Sector ...........................................7 2.2.3. Mining Sector Stakeholders ...............................................................................9 2.2.4. ASM Policy and Legal Framework .................................................................. 10 3. Case Studies ................................................................................................................................... 13 3.1. Case Study: COMIKAGI Cassiterite-Tantalite Mines ......................................................... 14 3.1.1. Supply Chain Actors, Activities, and Employment .......................................... 14 3.1.2. Distribution of Economic Costs and Benefits across the Supply Chain .......... 16 3.1.3. Findings from the COMIKAGI Case Study ...................................................... 19 3.2. Case Study: Gifurwe Tungsten Mines ............................................................................... 20 3.2.1. Supply Chain Actors, Activities, and Employment .......................................... 21 3.2.2. Distribution of Economic Costs and Benefits across the Supply Chain .......... 22 3.2.3. Findings from the Gifurwe Case Study ........................................................... 24 4. Economic Contributions of 3T Mining ......................................................................................... 24 4.1. State Revenues .................................................................................................................. 25 4.1.1. Foreign Exchange and Export Earnings ......................................................... 25 4.1.2. Taxes and Royalties ........................................................................................ 25 4.1.3. Social Security Fund of Rwanda ..................................................................... 26 4.2. Local Economic Development ........................................................................................... 26 4.2.1. Formal and Informal Employment ................................................................... 26 4.2.2. Stimulus into Local Economies ....................................................................... 27 5. Conclusions and Recommendations ........................................................................................... 28 5.1. Conclusions ........................................................................................................................ 28 5.2. Recommendations ............................................................................................................. 30 5.2.1. Formalise Labour Relations and Balance Distribution of Benefits and Risk in the Supply Chain ................................................................................................... 30 5.2.2. Gender Inclusion Is Essential .......................................................................... 31 5.2.3. Training on OHS and Efficient Extraction and Processing is Needed ............ 31 5.2.4. The Permitting and Administrative Process Should be Improved ................... 33 Annex 1: References ........................................................................................................................... 34 A1.1. Relevant Laws and Regulations ........................................................................... 37 Annex 2: 3T Production by Districts .................................................................................................. 39 Annex 3: Stakeholder Analysis .......................................................................................................... 41 A3.1. Government .......................................................................................................... 41 A3.2. Private Sector Actors and Organisations .............................................................. 42 A3.3. International and Regional Implementing, Non-Governmental, and Civil Society Organisations ..................................................................................................................... 44 Annex 4: Specific Legal Aspects ....................................................................................................... 46 The Economic Contributions of Artisanal and Small-Scale Mining in Rwanda: Tin, Tantalum, and Tungsten A4.1. Legal and Technical Comments on Required Minimum Reserve Quantities for ASM 46 A4.2. Legal Comments on Apparent Incongruences of the Legal and Regulatory Framework for ASM ........................................................................................................... 47 Annex 5: Detailed Case Study on COMIKAGI Cassiterite-Tantalite Mines .................................... 50 A5.1. Area Overview ....................................................................................................... 50 A5.2. Supply Chain Actors, Activities, Employment, and Production ............................. 51 A5.3.
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