Burundi suspends rare earth extraction due to wealth

The Burundian government has said it has suspended the operations of several international mining companies, complaining that it is not getting its fair share of revenues from the country’s mineral wealth.

One of these targets is managing the Gakara project, one of the world’s richest deposits of rare earths, which are key components of many high-tech products.

In a letter to companies seen by AFP, Mines Minister Ibrahim Uwizeye said the decision was taken earlier this month due to “numerous lapses” regarding the country’s mining code.

“The state, which owns the soil and the minerals, is not making a profit as it should,” the letter said.

Uwizeye called the mining contracts “imbalanced”.

“We want to renegotiate all these agreements for the benefit of the population, because these minerals must be used to finance the development of the country,” he told AFP on Thursday.

The seven companies involved are of British, Chinese and Russian descent, but Burundi’s main target of anger is Rainbow Rare Earths, listed in the UK.

Rainbow, through a subsidiary 10 percent owned by the Burundian government, operates Gakara, the only rare earth mine in production in Africa.

Other companies whose activities have been suspended are involved in the mining of gold and coltan, which are mainly used in electronic devices.

Burundi had high hopes from its industrial mining operations, especially rare earths, but revenues so far have been below expectations.

Uwizeye said Burundi is demanding a more equitable share of the Gakara project’s revenue and has ordered Rainbow to halt exports of rare earth concentrates until the situation is resolved.

Rainbow did not immediately respond to a request for comment.

“Burundi expects to earn around $ 1.5 million from mining in FY2021 … this is very little compared to what is exported,” said Gabriel Rufyiri, president. Burundi’s main anti-corruption watchdog, Olucome.

President Evariste Ndayishimiye, who took office in June 2020, has made the fight against corruption a top priority in Burundi, which has been among the 10 most corrupt countries for years, according to Amnesty International.

Rare earth minerals are essential in the manufacture of magnets used in industries of the future such as wind turbines, robots and electric cars, as well as in consumer goods such as smartphones, computer monitors and lenses. telescopic.