From S&P Global Platts, Aug. 7:
Highlights
- Rwanda seen investor friendly for mines
- Ethiopia has strong potential in gold
- Demand for local processing increasing
London —
East Africa is a new frontier for the discovery and exploitation of
so-called "technology metals," including tin, lithium cobalt and gold,
but this will require investment in local processing, along with
regulatory clarity, for communities, governments and developers to
benefit, mine investors and consultants say.
Rwanda, one of world's biggest producers of the 3Ts -- tin, tungsten
and tantalum -- came out tops as a regional mining location due to its
stability and investor-friendliness, with Tanzania and Ethiopia lagging
behind, mainly for regulatory reasons, according to a poll among
speakers and other participants in an Aug. 6 webinar hosted by Mining
Review Africa and Africa Mining Forum.
"We're at the beginning of an energy revolution which has enormous
relevance to technology metals, and also at the beginning of an major
supply-demand dislocation" in the minerals and metals required, said
Brian Menell, chairman and CEO of Ireland-based TechMet, which owns 25%
of Tinco, the largest tin and tungsten producer in Rwanda, with four
producing tin mines and one tungsten mine.
According to Menell, technology metals are expected to "consistently outperform other commodities over coming years."
Geopolitics and the possible emergence of a new cold war may create
a "fight for dominance" between Chinese and other parties in East
Africa for dominance of the mineral wealth of this "frontier" land, he
said.
Tin was ranked No. 1 in a Massachusetts Institute of Technology
report of metals most impacted by new technology, according to
TechMet. Primarily used as a solder, it is a fundamental ingredient for
EVs, energy storage, renewable energy, advanced robotics and computing.
"There are seven times the amount of tin in an electric vehicle as in an internal combustion engine vehicle," Menell said.
New Rwanda mine directives
The Rwanda Mines, Petroleum and Gas Board (RMB) unveiled new
strategies in June to help the mining sector to recover from the
coronavirus pandemic, Mining Review Africa reported.
Rwanda now targets becoming a regional mineral hub, focusing on
downstream processing and trading. Webinar speaker Marcus Courage, CEO
of London-based Africa Practice, an Africa-focused strategic advisory
firm, noted that progress on regional integration has moved faster in
East Africa than in the rest of the continent.
Rwanda established its first-ever gold refinery last year, with
capacity to process gold from around the continent, boosting African
efforts to add value to minerals before export. There is a Rwandan-owned
tin smelter in Kigali, East Africa's sole tin smelter, recently
certified as conflict-free, and there are plans to establish a tantalum
smelter.
RMB's strategies also involve reorganizing small scale mining
operators into licensed collective companies to be supported with
international investment.
Mining equipment and explosives are now to be made locally; mining
and mineral exploration defined as a priority in the investment code,
and a Mineral Exploration Support Fund set up.
"The aim is to attract international mineral exploration companies,
and de-risk exploration investments, key to achieve industrial scale
mining operations," Mining Review Africa said.
Menell said Tinco is looking at establishing tin smelting
operations in Rwanda to make ingots, but that tungsten is more difficult
to beneficiate locally as it is more energy intensive.
Rwanda also has "interesting lithium hard-rock potential," he said.
"It is a low-value commodity in its raw form and would be interesting
to look at processing locally."
Ethiopia: Emphasis on local beneficiation
Courage noted that Ethiopia is also emphasizing local processing,
with a "10-year home-grown economic agenda which brings more clarity of
expectation in terms of manufacturing and other related industries, and
the impetus they place on local beneficiation."....
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