MINING AND QUARRY OPERATIONS IN THE REPUBLIC OF RWANDA
Introduction
Mining is the second-highest foreign exchange earner in Rwanda. The main minerals produced in the country are tin, tungsten, and tantalum (3Ts) of which the country is ranked among the top producers worldwide. Gold, gemstones, and rare earth elements, as well as a wide range of development minerals, such as industrial minerals and precious and semi-precious stones are also found in significant quantities in Rwanda.
Law N° 58/2018 of 13/08/2018 on Mining and Quarry Operations governs mining and quarry operations in Rwanda.
The scope of this law covers activities of exploration, mining, trading and processing of minerals and quarry .
This Law covers a broad spectrum of the mining operations as listed below;
i) Mineral licence
ii) Rights and duties of the holder of a mineral licence
iii) Quarry licence
iv) Environment protection, health and safety
v) Financial provisions
vi) Breaches and administrative sanctions
vii) Offences and penalties.
In essence, this law seeks to promote professionalism and growth of the mining sector while giving a new lease of life to the mine workers whose safety at work has been the cause for concern, protection of the environment and even considerations of promoting activities aimed at gender equality and complementarity.
General principles relating to mining and quarry operations
There are certain general principles relating to mining and quarry operations in the republic of Rwanda;
a) All rights regarding ownership and control of minerals or quarry products in, under or upon any land in Rwanda are vested in the State notwithstanding personal ownership of land and other properties thereof.
b) Mineral exploration, exploitation, processing and trading are carried out by a person who has been granted a licence in accordance with the Law on mining and Quarry operations.
c) Quarry operations are conducted only by a person who has been granted a licence in accordance with the Law.
d) The competent authority may designate certain quarries for exclusive exploitation by the Government for the purposes of carrying out projects in the public interest.
e) The holder of a licence issued under this Law, prior to the commencement of operations, submits to the competent authority an environmental and social impact assessment approved by the relevant public organ.
Position of the Land Owner or Lawful Occupier
The law caters for the land owner or any other lawful occupier by providing them with full rights on that land in accordance with Rwandan land law.
However, in case there is a discovery of mineral or quarry deposit on any land, the land owner or a lawful occupier is fairly compensated in accordance with the law relating to expropriation in the public interest before the licence holder commences the mining operations.
This is in line with the Constitution which provides that everyone has the right to private property, whether individually or collectively owned. The supreme law further states that private property, whether owned individually or collectively, is inviolable.
It further states that this right to property shall not be encroached upon except in public interest and in accordance with the provisions of the law.
Law N° 32/2015 of 11/06/2015 determines procedures relating to expropriation in the public interest.
This Law also provides for the criteria of valuating the land and property incorporated thereon and payment of fair compensation .
Licences
The Law grants different types of mineral licences to respective prospectors.
1. Exploration licence;
2. Mining licence:
a. small-scale mining licence;
b. medium-scale mining licence;
c. large scale mining licence;
3. Mineral trading licence;
4. Mineral processing licence.
The Law additionally provides for different types of quarry licences as listed below;
1. Non-commercial quarry licence;
2. Commercial small-scale quarry licence;
3. Industrial quarry licence.
Application for License
Application for a mineral licence is determined by Ministerial Order N°003/MINIRENA/2015 of 24/04/2015 determining modalities for application, issuance and use of Mineral and Quarry Licenses.
This Law lays out the general requirements for application for mineral or quarry license .
Law N° 58/2018 of 13/08/2018 on Mining and Quarry Operations also provides for the acquisition of a licence through open tender.
A mineral licence cannot be granted in respect of an area of land covered by another existing mining licence of similar type.
However, it is upon the discretion of the competent authority, for the purpose of national interests, to authorize another person to carry out exploration of other type of minerals in an area already covered by a licence. A quarry licence and a mining licence may be granted in the same area provided that the competent authority finds that the quarry operations will not interfere with the mining operations.
The Law further grants mineral license holder exclusive mineral rights covered by his or her licence.
A mineral licence holder equally has the right to transfer the licence through assigning all or part of his or her shares.
However, there is a restriction on the transfer of a Quarry Licence. Only commercial small-scale quarry licence and an industrial quarry licence may be transferred.
The Law also provides for the duration of a mineral licence. An exploration licence is valid for an initial period not exceeding four (4) years whereas a mining licence is valid for an initial period not exceeding fifteen (15) years.
However, the duration of a mineral licence is determined based on a feasibility study and the project implementation program submitted and approved by the relevant organ.
Rights and duties of the mineral licence holder
The Law N° 58/2018 of 13/08/2018 on Mining and Quarry Operations equally provides for rights and duties of the holder of a mineral licence.
The holder of an exploration licence has the following rights;
1. To explore minerals in respect of which the licence is granted
2. To drill boreholes and make such excavations as may be necessary
3. To collect from the exploration licence area mineral samples for the purpose of having them analyzed and valued but their quantity should not exceed such limit determined through regulations issued by the competent authority
4. To construct necessary buildings
5. To receive the primary right to apply for a mineral licence on any portion of the exploration licence area where mineral deposit is discovered upon fulfilling the required conditions for the mineral licence.
Additionally, the Law provides for the rights and duties of the holder of an exploration licence. In addition, the holder of a Quarry Licence also has certain rights and duties as provided for by the Law.
The Law also seeks to ensure the protection of environment in the course of the mining operations. Holders of various mining licences must, prior to the commencement of any operations, submit to the competent authority a report on the study on environmental impact assessment and social welfare approved by relevant public organ.
This is in line with the corporate social responsibility requirement under the Ministerial Oder determining modalities for issuance and use of mineral and Quarry Licences.
The mining licence holder must have a rehabilitation plan laying out the rehabilitation activities and must carry out rehabilitation of the damaged areas of the environment. The mining licence holder remains liable for environmental protection until a final rehabilitation certificate is issued by the authority in charge of environmental protection.
The health and safety of workers and other persons must be considered by a holder of a licence who must ensure that the mine is commissioned, maintained and decommissioned in a manner that does not compromise their health and safety. The licence holder must also ensure that all persons working at the mine have the necessary skills, competence and resources to carry out their work safely.
The License holder is required to pay taxes, mining or quarry service fees and must, within three (3) months following the end of financial year, submit to the competent authority and the Rwanda Revenue Authority a copy of audited annual financial statement of the holder, in accordance with International Financial Reporting Standards.
The Law also allows the government to acquire shares in mining or Quarry operations on such terms as agreed upon with the holder of a licence.
It goes further to set the administrative sanctions for the various breaches. The Law provides for Offences and penalties in the course mining and exploration.
The coming into force of LAW N° 58/2018 OF 13/08/2018 on Mining and Quarry operations led to the repealment of Law n° 13/2014 of 20/05/2014 on mining and quarry operations and all prior legal provisions contrary to this Law are repealed.
This essentially ensured the scrapping of issuance of artisanal miner’s licences and introduces new provisions discussed above.
The Law gazetted on the 13th of August 2018 seeks to improve operations in the extractives sector by fine tuning the governance structure of mining and Quarry operations, the accountability of sector players, the safety of the workers and the eventual protection of the environment.
If well implemented, it will lead to a continued rejuvenation of a sector that plays a vital role in improving the economy of Rwanda.
KEY WORDS: MINING INDUSTRY,RWANDA