Rwanda is World’s Biggest Exporter of Coltan by Rerouting from DR Congo
According to a UN study, Rwanda is the biggest exporter of #coltan with 150 tonnes recorded in 2024. Rwanda does have some coltan mines but not as much as its neighbor, the Democratic Republic of Congo (DRC). It is alleged that the M23 (March 23rd Movement) rebels from DRC who smuggle #CriticalMinerals to Rwanda for export.
Exports of coltan via Rwanda started when rebel group M23 took control of Rubaya, a region in northern Kivu which is known for its coltan mines. M23 imposes ‘production taxes’ on the coltan mines and it is estimated that M23 earn on average USD 800,000 per month.
On the other hand, Rwanda is not too happy about DRC hosting the Democratic Forces for the Liberation of Rwanda (DFLR) which is hostile to Kigali. While M23 consists of Tutsis, the DFLR is made up Hutus, thus explaining the bad blood between the two groups.
In May 2022, ENACT released a report entitled “Mining and Illicit Trading of Coltan in the Democratic Republic of Congo.” The report provided an insight on the mechanism of the cross-border operations involving coltan.
Based on current rules, a certificate of origin for Rwandan coltan can be obtained for coltan from elsewhere as long as there is at least 30% of local value addition (#LVA). Through abuse of this mechanism, coltan originating from DRC is turned into coltan from Rwanda. As opposed to DRC, Rwanda does not impose any export duty on coltan, thereby implicitly encouraging this export route.
Earlier in April 2022, Global Witness published yet another report entitled “The ITSCI Laudromat” which revealed that 90% of minerals exported from Rwanda actually originates from DRC. Recently, the issue has become a subject of contention between the two neighboring countries.
DRC has pointed fingers at Apple for using ‘illegal coltan’ from Rwanda in the manufacture of its smartphones, tablets and other electronic devices. An Apple spokesperson denied the allegations, but Apple nevertheless temporarily suspended procuring coltan from both Rwanda and DRC.
The UN report thus imparts new momentum to the coltan contention between DRC and Rwanda. DR Congo has about 70% of the global reserves of coltan but Rwanda is the largest exporter.
The other unfortunate characteristic in the mining operations is the prevalence of child labor which poses both a safety and ethical dilemma. The extraction of the minerals often occurs under rudimentary and deplorable conditions.
Through this illegal trade, the DRC government claims that it is losing some USD one billion annually in mining revenue. Talks between Rwanda and DRC to attempt to resolve the controversy have so far not been successful. Other than Rwanda, minerals are also routed via neighboring Burundi and Uganda, adding an extra layer of complexity to the issue.