On July 24, Rwanda's new Mining Law (No. 072/2024 of June 26, 2024) came into force. The new mining law stipulates that the government can hold a stake in a mining project, and the specific share and mode are determined by the government investment department. The new mining law gives the government exclusive rights to designate strategic minerals. In addition, the new mining law increases penalties for illegal mining and illegal mineral trading, with offences such as illegal mining punishable by up to five years in prison and a fine of up to 80 million Rwandan francs, while illegal mineral trading can result in up to 10 years in prison and a fine of up to 150 million Rwandan francs. Moreover, the government has the power to dissolve companies found guilty of illegal mining activities.
The Minerals Tax Act 2024 came into effect on July 5. The new Mineral Tax Law has expanded the tax base, including gems, energy minerals, etc. into the scope of payment of equity funds, and added new taxes on mineral export taxes. The Minerals Tax Act 2013 provides for an equity premium rate for base metals, gold and diamonds of 4% for base metals and 6% for gold and diamonds. The Minerals Tax Act 2024 will reduce the rate of base metal equity gold to 3%, gold to 0.5%, gemstones (including diamonds) to 2%, platinum group metals and rare earths to 2%, and energy minerals (lithium, cobalt, manganese, graphite) to 3%. A mineral export tax is imposed to encourage local processing to add value, 2% for base metals, platinum group metals, energy minerals, 3% for gemstones, 1% for rare earths, and 0.5% for gold.
