FREQUENTLY ASKED QUESTIONS

1.         What is RMB?

The Rwanda Mines, Petroleum and Gas Board (RMB) MB is the Government of Rwanda body responsible for implementing and advising the government on issues related national policies, laws and strategies related to mines, petroleum and gas.  It is also mandated to monitor and coordinate the implementation of strategies related to mines, petroleum and gas.  In addition to monitoring, it is supposed to carryout research & exploration in geology, mining and petroleum and do disseminate the findings. Further, the RMB is supposed to supervise and monitor private or public entities conducting mining, trade and value addition of mineral operations. It is to assist the government in valuing mining and quarry concessions. Lastly, RMB is to cooperate and collaborate with other regional and international institutions carrying out similar mission.

2.         RMB, RDB, MINICOM, REMA who does what?

Rwanda Mines Board (RMB): Designing Policy and strategies, Issuing of Mining and Quarry licenses, laws and regulations elaboration and supervision and Promotion of mining sector at national and international levels, Enhance geological and mining knowledge of the country, improve exploitation and investment conditions, monitoring mining activities to comply with the law and increase value addition to Rwanda’s mines and quarries.

Rwanda Development Board (RDB): Investment process, guidance, facilitation, leading negotiations for strategic projects, issuing EIA, and providing incentives

Rwanda environment management authority (REMA): Setting environment standards, environment inspection of mining projects and rehabilitation of exhausted mines and quarries

Ministry of Trade and Industry (MINICOM): Mineral trading license

3.         Is mineral exploration and processing transparent?

The answer is YES.

Rwanda started following the enactment of the Dodd-Frank “conflict-minerals” Act

Mineral traceability in Rwanda use the ITRI/iTSCi ‘tag and bag’ scheme was initiated in late 2010

The Government passed mineral anti-smuggling regulations in March 2011

Since April 2011, 100% of Rwandan minerals are traceable from their mine sites up to their export point

Since 2012, Rwanda has integrated the Regional Certification Mechanism (RCM) in its mining regulations

The RCM forms part of the ICGLR Regional Initiative on Natural Resources, adopted by heads of state in December 2010

 

4.         What are fiscal and non-fiscal incentives?

Non Fiscal Incentives

          Facilitate quick Investment registration

          Facilitation with tax related services and exemptions

          Facilitation with obtaining visas and Work permits

          Notary services provided by Our One Stop Center

          Assigning Key Account Manager to projects registered with in the One Stop Center

          Facilitation to access utilities Fiscal Incentives

          0% Corporate Income Tax for Mining companies planning to relocate H/Q’s to Rwanda

          Corporate Income Tax Holiday up to 7 years for investment of at least US$ 50 m

          15% Preferential Corporate Income tax for projects exporting processed minerals up to 50% of turnover of minerals produced in Rwanda

          Investment allowance of 50% or Accelerated depreciation of 50%

          Capital Gains tax exemption and free repatration of Capital and assets

          Import free on Heavy Machinery used in Mining

          Vat exemption on Mining equipments

 

5.         Who and when are inspection operations conducted?

The competent authority or an authorized officer may at any time, enter any area over which any license has been granted or any premises or places related to such license, for the purpose of inspecting the licensed activities.

6.        

7.         What happens when someone provides false information to obtain a license?

Any person, who provides false information in order to obtain a license issued under mining Law, commits an offence.

As stipulated article 59 of mining law Upon conviction, he/she is liable to imprisonment for a term not less than six (6) months and not more than one (1) year and a fine of not less than three million Rwandan francs (FRW 3,000,000) and not more than five million Rwandan francs (FRW 5,000,000).

8.         What happens if I don’t want to indicate the origin of the minerals?

Any person caught with minerals without proof of their origin is liable to an administrative fine equal to ten per cent (10%) of the value of the minerals and the minerals are confiscated.

9.         What is the duration of quarry license?

A non-commercial small-scale quarry license is valid for a period of one (1) year renewable.  A commercial small-scale quarry license is valid for a period of five (5) years renewable.  An industrial quarry license is valid for period not exceeding fifteen years (15) years determined based on the feasibility study of the quarry project approved by the relevant organ but the license duration is renewable.

10.       What is the size of mineral license area?

Size of a mineral license area :

The mineral license area consists of one or more contiguous blocks, and each block is reported on independently in accordance with business plan. The maximum size for each block is as follows:

1 º       four hundred hectares (400 ha) for an exploration license;

2 º       fifty hectares (50 ha) for a small- scale mining license;

3 º       one hundred hectares (100 ha) for a medium- scale mining license;

4 º       four hundred hectares (400 ha) for a large- scale mining license;