Ad imageAd image

Burundi Looking For International Company to Extract Musongati Nickel Deposits

3 Min Read
Ibrahim Uwizeye and representative of East African Region Project Group

The Burundi government said earlier this week that it is looking for highly experienced firm or a consortium of international companies to develop and extract Nickle deposits in Rutana province.

According to details, this under developed mining site could generate the much needed foreign exchange if they find a firm with proven experience in the development of the mine, the exploitation, transformation and marketing of nickel and associated minerals.

According to the report of the Council of Ministers of February 22, 2023, “Participation in expressions of interest is open to equal conditions, in all companies or consortium of mining companies with the technical, financial and legal capacities required for the execution of the work -cited work.”

Government says, companies or consortium of minor companies interested must provide information related to their experience and technical capacity demonstrating that they are qualified for the execution of work cited as well as their financial capacity through Certified financial statements for the past five years.

Meanwhile, Burundi’s Minister of Hydraulics, Energy and Mines, Ibrahim Uwizeye, had signed, on March 29, 2022, a memorandum of agreement with the Russian company East African Region Project Group concerning the execution of the project investment to exploit the nickel deposit of Musongati and associated minerals in the Rutana province.

This memorandum was signed after the revocation of the nickel operating license granted to BMM International in 2014 for non-compliance with the contract clauses.

The Council of Ministers of March 22, 2022 had specified that this memorandum of understanding will have a period of two months.

“Going to go beyond this period, without transferring funds from the first tranche to the central bank, this memorandum will become a decaual”.

According to the said Council of Ministers, this company was to pay an amount of U$ 1.5 billion per year as a financial subsidy for a period of 10 years, or 15 billion US dollars.

According to the distribution made of this sum, East African Region Project will pay annually for 10 years an amount of U$ 500 million, or 33.3 % to the State of Burundi, under the terms of the Memorandum of Agreement.

Leave a comment