Donation Amount. Min £2

 

Burundi's government suspended the operations of several international mining companies, arguing that it was not receiving its fair share of income from the country's mineral wealth, local media reported on Saturday.

British, Chinese, and Russian companies are among the seven firms affected by the decision. The key company among them is the British-listed Rainbow Rare Earths, which runs the Gakara project, Africa's only rare earth element production in western Burundi.

The decision was made earlier this month following "numerous failures to respect the country's mining code," a report said, quoting Mines Minister Ibrahim Uwizeye.

"The state, which owns the soil and minerals, is not making a fair share profit as it should because of the unbalanced mining contracts," he said.

This followed a report by an evaluation commission on rare earth element deposits in Gakara, which Rainbow Rare Earths says has "numerous and extensive veins containing nearly pure bastnaesite and monazite minerals."

These minerals are used in many hi-tech products.

"We want to renegotiate all these agreements for the benefit of Burundian people who look to these minerals to finance the development of the country," Uwizeye said.

Other companies whose operations have been suspended are engaged in gold and coltan mining.

Uwizeye said the government wants a more equitable share of revenue from the Gakara project and has suspended exports of rare earth concentrates until this complaint is addressed.

The East African country expects to earn about $1.5 million from mining in the 2021 fiscal year -- a miniscule amount when compared to what is exported, according to the government.

Gabriel Rufyiri, president of Burundi's main anti-corruption watchdog OLUCOME, believes mining is one of the sectors that costs the state a lot of money "because those who should ensure the protection of public affairs do not do so."

Rufyiri has called for the prosecution of those who represented the Burundian government in the negotiation of the contract.

Under the country's controversial mining code, the firm that signs an agreement holds 51% of shares in the project, while 39% are held by other shareholders and 10% by the Burundian state.

Under these conditions, the "win-win principle is not possible," said Rufyiri, describing the situation as a "looting of resources."

Rare earth minerals are major components used in manufacturing magnets in such industries as wind turbines, robots, and electric cars, as well as consumer goods such as smartphones, computer screens, and telescope lenses. - James Tasamba, Anadolu Agency

About IEA Media Ltd

Informer East Africa is a UK based diaspora Newspaper. It is a unique platform connecting East Africans at home and abroad through news dissemination. It is a forum to learn together, grow together and get entertained at the same time.

To advertise events or products, get in touch by info [at] informereastafrica [dot] com or call +447957636854.
If you have an issue or a story, get in touch with the editor through editor[at] informereastafrica [dot] com or call +447886544135.

We also accept donations from our supporters. Please click on "donate". Your donations will go along way in supporting the newspaper.

Get in touch

Our Offices

London, UK
+44 7886 544135
editor (@) informereastafrica.com
Slough, UK
+44 7957 636854
info (@) informereastafrica.com

Latest News

Woman condemns Vietnamese husband’s deportation to South Sudan

Woman condemns Vietn...

A woman in Pierce County, Washington state, has expressed outrage after her husband was unexpectedly...

Kenya targets Sh10bn annual earnings from Macadamia as govt commits to sector growth

Kenya targets Sh10bn...

Kindiki outlined the government’s vision to transform the macadamia sub-sector into a major contribu...

Bill Gates to give most of his $200bn fortune to Africa

Bill Gates to give m...

Microsoft founder Bill Gates says that most of his fortune will be spent on improving health and edu...

Let views on Finance Bill count, ex-Senator Billow Kerrow tells government

Let views on Finance...

Former Mandera Senator Billow Kerrow. [Screengrab] Political economist, Billow Kerrow, has urged th...

For Advertisement

Big Reach

Informer East Africa is one platform for all people. It is a platform where you find so many professionals under one umbrella serving the African communities together.

Very Flexible

We exist to inform you, hear from you and connect you with what is happening around you. We do this professionally and timely as we endeavour to capture all that you should never miss. Informer East Africa is simply news for right now and the future.

Quality News

We only bring to you news that is verified, checked and follows strict journalistic guidelines and standards. We believe in 1. Objective coverage, 2. Impartiality and 3. Fair play.

Banner & Video Ads

A banner & video advertisement from our sponsors will show up every once in a while. It keeps us and our writers coffee replenished.