Post-peace deal prospects: Will Rwanda become a processing hub for DRC's minerals? #rwanda #RwOT

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According to President Donald Trump's senior advisor for Africa, Massad Boulos, these agreements will pave the way for billions of dollars in investments from American and Western companies into both countries.

"When we sign the peace agreement ... the minerals deal with the DRC [Democratic Republic of Congo] will be signed on that day, and then a similar package, but of a different size, will be signed on that day with Rwanda," Massad Boulos told Reuters recently during an interview in Doha, the capital of Qatar.

However, the path to signing these agreements involves preconditions. For instance, the DRC is requested to address security threats that affect Rwanda, particularly neutralizing the FDLR militia.

On Rwanda's side, the conditions involve the request to end alleged support for the M23 rebel group, claims Rwanda has repeatedly denied.

At the same time, the DRC is expected to implement domestic reforms that ensure equitable resource distribution across its regions and promote decentralized governance.

Once these steps are completed, the U.S. will proceed with bilateral economic agreements focused on trade and investment.

Since Donald Trump returned to office, business-driven diplomacy has been at the heart of his foreign policy, with his Senior Advisor on African Affairs, Massad Boulos, leading negotiations.

While the DRC, with its vast natural wealth, will be the principal recipient of U.S. investments, Rwanda is not overlooked. The U.S. has acknowledged Rwanda's mineral reserves, technical expertise in extraction and refining, and its efficient global export systems.

'The [agreement] with the D.R.C. is at a much bigger scale, because it's a much bigger country and it has much more resources, but Rwanda also has a lot of resources and capacities and potential in the area of mining as well … not just the upstream, but also midstream and downstream to processing and refining and trading,' Boulos said.

According to Boulos, U.S. companies will invest in both countries. Some firms are already in talks to invest at least $1.5 billion in the DRC's mining sector. Oversight of the U.S. contribution to these partnerships will be handled by the U.S. International Development Finance Corporation (DFC).

Infrastructure and energy at the center

A major component of the negotiations has been infrastructure. The U.S. believes the DRC's mineral wealth cannot be fully tapped without better transport and energy systems.

This includes the Lobito Corridor, a 1,300-kilometer railway linking Angola, the DRC, and Zambia. The project is expected to expand and protect critical mineral supply chains, increase rail transport capacity, and reduce freight transit times and costs.

The United States has pledged funding for the infrastructure project, which is expected to be completed by 2029.

Another high-priority project is the Ruzizi III Hydropower Plant, a regional energy initiative expected to produce 147 megawatts (MW) of electricity.

Funded by the World Bank, European Union, and African Development Bank (AfDB), the $450 million project was launched in 2016 but delayed, with completion now expected by 2030.

Once operational, Rwanda will receive 47 MW, with the remaining energy shared between the DRC and Burundi.

Rwanda's role in mineral processing

A particularly notable topic is the possibility of processing DRC's minerals in Rwanda.

Rwanda already has well-established refining facilities, including Gasabo Gold Refinery, Power X Refinery (tantalum), and LuNa Smelter (tin).

Exporting raw minerals often results in lost economic value. For instance, when coltan is processed, it yields tantalumâ€"but also produces valuable by-products such as niobium (used in steel and electronics) and phosphate (used in fertilizer).

When countries export unprocessed coltan, they lose all potential gains from these by-products, which are only extracted in refineries.

Gold refined in Rwanda reaches 99% purity, and its tailingsâ€"silverâ€"is a valuable metal commonly used in jewelry.

Because Rwanda processes these materials locally, it avoids refinery charges and captures revenue from every by-product.

This dual benefit, saving costs and adding value,is a strategic advantage that Rwanda is set to expand.

As part of the upcoming trade agreements with the U.S., Rwanda is positioned to become a regional hub for mineral transformation.

This means minerals extracted from the DRC may increasingly be transported to Rwanda for processing, before being exported to global markets under Rwandan trade infrastructure.

The U.S. has also recognized Rwanda's efforts to create industrial zones dedicated to mineral processing.

These zones could soon host new facilities built to handle imports from countries including the DRC.

The U.S. has also recognized Rwanda's effort to create industrial zones dedicated to mineral processing.
Rwanda already has well-established refining facilities, including: Gasabo Gold Refinery.

IGIHE



Source : https://en.igihe.com/news/article/post-peace-deal-prospects-will-rwanda-become-a-processing-hub-for-drc-s

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