Burundi Grants Mining License for Cassiterite, Columbite-Tantalite Extraction in Kirundo to SOTREVO Mining

In a bid to enhance revenues from the country’s mining sector, the Burundian government has awarded a mining permit for cassiterite, columbite-tantalite, and associated minerals in the Murehe area of Busoni commune, Kirundo province, to SOTREVO Mining Company Limited. The decision followed an extraordinary Cabinet meeting chaired by President Evariste Ndayishimiye on Monday, during which a decree authorizing mining operations in the northern province was approved.

According to a statement from the Council of Ministers, the government has recognized the significant mining potential of the Murehe deposit, which, when responsibly exploited, could play a pivotal role in Burundi’s economic development. The government has chosen to partner with SOTREVO Mining Company Limited to optimize the extraction process.

The deposit, estimated to contain 12.7 million tonnes of minerals, will be mined over a period of 15 years, divided into three phases of five years each. The financial investment for the first phase is estimated at over 6.95 billion Burundian francs, with the total cost for all three phases projected to exceed 45.88 billion BIF.

The production revenue sharing will be divided as follows: the state will receive 20% of the total earnings from the sale of the extracted minerals, while 80% will go to SOTREVO, minus depreciation costs, as per the agreement outlined in the Council of Ministers’ conclusion.

This is not the first time the Burundian government has signed mining contracts or memoranda of understanding for mineral exploitation in various provinces. However, previous agreements with international mining companies were suspended, as the government claimed it was not receiving a fair share of the revenue generated from the extraction of its natural resources

Despite its underground wealth, Burundi is currently grappling with an unprecedented economic crisis marked by rising living costs and fuel shortages, driven by a shortage of foreign currencies. The government hopes to generate more revenues from the mining sector to stabilize the struggling economy.

In his recent discussions with former Presidents Domitien Ndayizeye and Sylvestre Ntibantunganya, President Evariste Ndayishimiye pointed out that certain minerals, like nickel, require specialized expertise. He revealed that, of the eight companies the state had planned to grant mining permits, only one, a Chinese company, met the required standards. The President further emphasized that Burundi’s nickel reserves alone are estimated at more than 200 million tonnes, in addition to significant platinum deposits.