The agreement between the Government of Rwanda, through the Rwanda Mines, Petroleum and Gas Board (RMB), and Almonty Industries Inc., which operates through its local subsidiary Almonty Rwanda Pty Ltd, is expected to strengthen cooperation in tungsten mining, processing and value addition.
RMB described the arrangement as an important milestone for Rwanda’s mining sector, particularly as the country seeks to move beyond the extraction and export of raw minerals towards greater domestic processing.
Under the agreement, Almonty will purchase tungsten ore mined and processed in Rwanda, while the company also plans to establish a processing plant in the country.
The planned investment is expected to expand local processing capacity and create opportunities for more value to be retained within Rwanda.
A 25% government stake
The planned 25% shareholding gives Rwanda a direct ownership interest in the company’s operations under the partnership, potentially allowing the country to participate in future returns generated from the development of the tungsten business.
For a mining economy, equity participation can provide a pathway for governments to benefit not only through taxes, royalties and employment, but also through dividends and the appreciation of their investment when a project becomes commercially successful.
The partnership also aligns with Rwanda’s broader strategy of developing a stronger mineral value chain, where minerals are increasingly processed locally before being exported.
Tungsten at the centre of the partnership
Tungsten is considered a strategically important industrial mineral because of its exceptional hardness, high melting point and resistance to wear and heat.
It is used in sectors including manufacturing, electronics, engineering, energy and defence-related industries.
For Rwanda, expanding tungsten production and processing could therefore provide opportunities to increase export earnings while strengthening the country’s position in international mineral supply chains.
The planned processing facility is particularly significant because local beneficiation can generate additional economic activity beyond mining itself, including jobs, technical skills, services, transportation and supporting industries.
Focus on value addition
RMB said the partnership will contribute to the development of Rwanda’s mineral value chain, increase the country’s capacity to process minerals and support more sustainable mining practices.
The arrangement comes as Rwanda continues to position mining as an important contributor to economic transformation.
The sector has increasingly been targeted for investment in exploration, modern mining technologies and mineral processing as the country seeks to raise the value generated from its natural resources.
The Almonty partnership could consequently represent more than a mining agreement: it provides Rwanda with an opportunity to combine resource extraction, processing capacity and equity ownership in one investment framework.
With Rwanda expected to hold 25%, Almonty retaining the remaining 75%, and a processing facility planned locally, the partnership could create a platform for expanding tungsten production while giving the country a larger role in determining how its mineral resources are developed and commercialised.