REGIONWEEK 03 MAR 2020
This Tuesday, March 3, President Pierre Nkurunziza inaugurated a mining site on the Buvyukana hill, Ntega commune of Kirundo Province.
Ntega Mining Burundi is the company that will mine Coltan and associated minerals on this site and has an operating license valid for 25 years.
The State of Burundi holds a capital of 15% in the company. The company which will exploit a 31,390 ha site to obtain a production of 2,464,293 tonnes in 12 years
In his launching remarks, the head of state spoke on how Burundi colonizers introduced divisionism and took advantage of Burundi society cleavage to exploits mineral deposits since 1930.
President Nkurunziza warned companies that illegally exploit the minerals and certain speculative traders who sell them fraudulently in neighboring countries.
“Whoever is caught will be considered an enemy of the country” he added
The mining sector anti-fraud measures initiated by the Burundi Government generated over 70 million US dollars in 2019 whereas they did not exceed 10 million US dollars in 2014, he reminded.
The head of state invites all Burundians to show patriotism, to consolidate peace and security and above all to block the way for the troublemakers.
The Burundi Minister of Energy and Mines during the event announced that Ntega Mining Burundi s.m will mine Coltan and associated minerals in Ntega, Vumbi in Kirundo Province & Marangara Ngozi Province will benefit from the support of Burundi Government
Besides, the profits that will be generated by its shares in the company, the state of Burundi will benefit from taxes on exported mines, taxes on profits, taxes on wages of employees and the construction of public infrastructures in the communes of operations.
Mining sector in Burundi
Burundi produces cobalt, copper, nickel, niobium (columbium), tin, tantalum, tungsten, gold, and limestone. The Government considers the development of the mineral sector to be of high importance, given its potential to enhance job creation, economic diversification, and tax revenues.
Burundi has, for example, the second-largest coltan reserve in the region and about 6 percent of world nickel reserves, but these resources are currently being extracted by artisanal methods and the industry faces challenges, such as inadequate electricity and transport infrastructure.
The formalization of mine sites and miners earning fair prices for their minerals on the international market has created a promising business environment. Previously, under the old mining regulations, licenses for formal mining cooperatives cost more than US$13,000 and expired at the end of the calendar year, regardless of when they were issued. As a result, more than half of the cooperatives were operating illegally by the end of 2014.
The Government of Burundi was able to identify and revise issues created by previous policies that hindered mining production and devise new mining regulations. Subsequent to these new regulations, the 3T mining sector in Burundi has blossomed.
