The government of Burundi has granted a mining permit for cassiterite, Colombo-tantalite, and associated minerals in the Murehe area of Busoni Commune, Kirundo Province, to SOTREVO Mining Company Limited, following an extraordinary meeting of the Council of Ministers on Monday, December 23, 2024.
The meeting, chaired by President Evariste Ndayishimiye, focused on a single agenda item: the approval of a draft decree granting the mining permit. The decision is in line with Burundi’s Vision 2040, which aims to position the country as an emerging economy by 2040 and a fully developed nation by 2060.
“The Murehe mineral deposit is significant and, if exploited responsibly, can play a crucial role in the country’s economic development,” said government spokesperson Jerome Niyonzima in a statement following the meeting.
Project Overview and Investment
The SOTREVO Mining Company expressed interest in the Murehe deposit on October 19, 2024, submitting a feasibility study that estimated mineral reserves of 12.7 million tonnes. The project will be carried out in three phases, each lasting five years, with an initial 15-year operating contract.
For the first phase, the company is investing approximately 6.95 billion Burundian francs (roughly $5.96 million USD), with additional investment for the subsequent phases totalling 45.88 billion Burundian francs (around $25 million USD).
The Burundian government will provide land and access to subsoil resources, along with relevant project data to support the venture. In return, the operating company has committed to establishing a sinking fund for the project’s sustainability and ensuring the upkeep of infrastructure, equipment, and machinery.
Revenue Sharing Agreement
Under the agreement, the revenue from the mining project will be split between the State and SOTREVO Mining Company, with the government receiving 20% of total revenues and the company retaining 80%, which will be deducted from the sinking fund.
The decision to approve the project was made after thorough discussion, with some formal and substantive adjustments made to the original proposal.
Government Announces Recess and New Year Wishes
In addition to the mining permit approval, the Council of Ministers announced that the government would enter a recess from January 2 to January 17, 2025, with activities set to resume on January 20, 2025.
The signing comes at a time when Burundi president Evariste Ndayishimiye suspended several mining companies few months after taking over the office in 2020, the country had since then struggled with foreign exchange.
The approval of the mining project is expected to significantly contribute to Burundi’s economic growth and further the country’s ambitions of becoming a major player in the African mining sector.
