Rwanda : Miners demanding for long term contracts

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Rwanda | Miners demandingAs mining contracts for several companies operating in Rwanda are getting expired, the government and miners are now rethinking of the best negotiation grounds that will enable the companies and government have a common ground of benefit.

Miners in Rwanda has asked the government to extend the contracts for longer period, but in the meantime government has been upbeat on negotiating with the investors in the sector, thus training its officials  to do the job.

At least seven companies have already had their four year contracts expired and many more are close to the expiry dates.

According to the Geology and Mines Department (GMD) department in the Ministry of Natural Resources, the government wants to ensure that all clauses are balanced and that both parties can benefit without undermining the other.

Evode Imena, a Geologist with the GMD says that the negotiation skills will be important in eliminating the difficulties faced in negotiating large-scale mining contracts and to identify bargaining edges that are beneficial to the government.

The mining sector’s significance to the economy is well cemented; it employs over 32,000 people whereas last year, mineral exports fetched over $150 million, $11million more than tea and coffee combined.

The Director General of GMD, Dr Michael Biryabarema, also stated that the mining sector is becoming more important to the government, hence the need to review all its factors, as a way of ensuring that the government’s position is clear in contract negotiations and having a balance between public maximum benefit and private company’s good rate of return

 

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Based in New York, Patrick is a Wall Street Broker and Financial Pundit. He works as a Foreign Consultant for Rwanda Eye. His insights on the current economic trends and its impact on Rwanda and Africa, makes him an invaluable asset to Rwanda Eye.

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