Rwanda has signed a multibillion-dollar mining deal with Russia’s Rosgeo that will see the Russian firm undertaking geochemical analysis of hydrocarbons samples from Lake Kivu (West), an official source revealed Thursday in Kigali.
The Chief Executive of Rwanda Mines, Petroleum and Gas Board (RMB), Francis Gatare signed on behalf of the government with Sergey Gorkov the firm’s Chief Executive representing Russia.
The firm’s entry into the local eco-system was earlier this week facilitated by the signing of a mining and hydrocarbon Cooperation Agreement in Sochi, Russia on the sidelines of the Russia-Africa summit to which Rwandan President Paul Kagame is part of African heads of state in attendance.
As part of the agreement, the two parties will jointly identify future hydrocarbon exploration opportunities in the Lake Kivu basin, collaborate to set up a certified geochemistry, petrology and mineralogy laboratory, provide training in the study of geosciences, and develop Rwanda’s geothermal potential.
The agreement also provides for the supply of equipment and services for geological exploration and mining, technical assistance and transfer knowledge, and training in cutting-edge software needed for mining and hydrocarbons exploration.
Commenting on the agreement, the CEO of Rwanda Mines, Petroleum and Gas Board (RMB), Francis Gatare aid that the agreement serves to foster Russian investments in the local mining sector to bring on board the country’s expertise.
“With Russia’s expertise in the extractive sector there is no doubt the agreement will bear fruit,” the Rwandan senior official said.
Rwanda’s mining sector has been growing steadily in recent years characterized by diversification beyond the dominant 3Ts (tin, tantalum and tungsten).
Official statistics indicate that the country’s mineral exports generated $399 million in 2017-2018 financial year, from 7,000 tonnes.
The target is at growing minerals export revenues to $800 million by 2020 and $1.5 billion annually by 2024, according to official projections.
CU/abj/APA