Mining agreements, local content and community: the RMB agreement under Article 73 of Law N° 072/2024, the 2019 model agreements and KIAC arbitration, the 70% Rwandan staffing rule and 10% supplier preference, District community development plans, ESIA under Ministerial Order N° 003/MoE/25, the 10%/90% rehabilitation guarantee, safety, explosives and artisanal mining

Three layers: the licence, the law and the agreement

A mining project in Rwanda is governed by three instruments that must be read together. The first is the licence itself, granted by the Rwanda Mines, Petroleum and Gas Board (RMB) under Law N° 072/2024 of 26/06/2024 on mining and quarry operations (the Mining Law), published in the Official Gazette n° Special of 24/07/2024 and in force since that date (Article 78); licences and their terms are explained in Mining licences and quarry licences. The second is the Mining Law and the regulations made under it. The third is an agreement between RMB and the licence holder. Article 73(1) provides that the competent organ, which is RMB, enters into an agreement with the holder of a licence for industrial mining or quarry operations 'to perfect the licence holder's rights and obligations', and Article 73(2) leaves the content of that agreement to RMB regulations.

No regulation under Article 73 had been published by 10 October 2026. In practice RMB continues to apply Regulations of the CEO N° 004/MINES/RMB/2019 of 18/07/2019 determining the format and content of a mineral licence and the content of an agreement with a mining or industrial quarry licence holder, published in the Official Gazette n° 29 bis of 29/07/2019 under the repealed Law n° 58/2018. Those Regulations annex model agreements: Annex II for exploration, Annex III for large-scale mining, Annex IV for medium-scale mining and Annex V for small-scale mining. The Mining Law saves existing licences until they expire (Article 75) but contains no general clause preserving the 2019 regulations, so their continued force rests on RMB's practice rather than an express statutory saving. An investor should treat the model as the starting text RMB will table, check with RMB which version it is using, and expect the eventual Article 73 regulations to replace it.

The agreement does not displace the law: nothing in it allows the parties to derogate from laws on anti-corruption, human rights and national security (Article 27 of Annex III), and RMB keeps its statutory powers to fine, suspend and cancel (Article 28). What it adds is precision: the work and investment commitment, the employment, procurement and community plans and the amount of the rehabilitation guarantee become contractual obligations whose breach is a ground for termination.

What the model mining agreement contains

The Annex III model for large-scale mining runs to 41 articles. Before mining starts the licensee must satisfy conditions precedent (Article 2): an environmental management plan submitted to RMB, proof of payment of the environmental rehabilitation guarantee, resettlement or compensation of affected landowners and lawful occupiers in accordance with Rwandan law, and RMB's written approval of the Minimum Work and Investment Commitment. The agreement lasts for the licence period, including renewals (Article 3).

Among the licensee's obligations (Article 4) are starting mining operations within 180 days of the licence, complying with child labour and gender laws, obtaining every environmental approval before an activity that may affect land, air, water or forest, notifying RMB within 7 days of any discovery of radioactive minerals or of archaeological or historical objects, and complying with the traceability and certification mechanisms of the International Conference on the Great Lakes Region (ICGLR), described in 3T, gold and traceability. The licensee's rights (Article 5) include the exclusive right to mine the minerals in the licence, to build plant and facilities, to continue operating while a renewal application is pending, and to open and operate bank accounts, including in foreign currency, and transfer or repatriate funds, subject to transfer pricing and anti-avoidance rules.

The Government assurances in Article 6 are limited: permits are to be issued on a timely basis in accordance with applicable laws, and the Government will not expropriate the licensee's capital, property and assets except for public interest, on a non-discriminatory basis, under due process of law and with prompt, adequate and effective compensation. Annual licence fees and surface rent are paid in advance by 31 December for the following year (Article 9). The licensee must give RMB and the Rwanda Revenue Authority (RRA) its smelting, refining and sales contracts and an annual sales report (Article 18), deal with affiliates at arm's length (Article 19), and obtain RMB's prior written consent to any transfer, assignment or mortgage of the licence or of shares in the licensee; a change of control is treated as a transfer and an unapproved one is void (Article 20). The model contains no clause freezing the law at signature. The nearest equivalent is the review clause in Article 30, under which either party may call for good-faith consultation on a 'critical matter', defined as a change in economic, political or social circumstances so fundamental that the expected balance of benefits can no longer be achieved; any amendment must be agreed.

Disputes, force majeure and termination

The model is governed by the laws of the Republic of Rwanda (Article 31). A dispute must first be the subject of an attempt at amicable settlement for 30 days from notice; failing settlement, it is resolved by arbitration under the Rules of Arbitration of the Kigali International Arbitration Centre (KIAC), before one arbitrator or three as the parties agree, seated in Kigali, in Kinyarwanda, English or French, and the award is final, binding and enforceable in any competent court (Article 32). The procedure and the enforcement of KIAC awards are explained in Arbitration law and KIAC. A foreign investor whose home State has an investment treaty with Rwanda may also have treaty rights that sit alongside the contractual clause (Investor-State disputes and treaty protection).

A party affected by force majeure must notify the other within 48 hours of its start and of its end, and either party may terminate if it continues for more than 180 days (Article 33). The licensee may terminate on at least 90 days' notice if, in its reasonable consideration, the mine can no longer be worked economically (Article 25.2). RMB may terminate on twelve listed grounds, including persistent non-payment of royalties, taxes or rent, failure to comply with the approved environmental and social management plan, false information, failure to maintain the rehabilitation guarantee or insurance, failure without justification to meet the Minimum Work and Investment Commitment, an unapproved transfer, insolvency, and corrupt, fraudulent, collusive, coercive or obstructive practices in obtaining the licence or performing the agreement (Article 25.3). Before terminating, RMB must give 30 days' written notice to remedy and, if the breach is not remedied, 30 days' notice of termination (Article 25.4). That 30-day cure period comes from the model agreement, not from the Mining Law, whose cancellation grounds in Article 53 carry no cure period.

The consequences on termination are severe and should be priced into any financing. Unless RMB decides otherwise, all buildings, structures, installations and fixtures in the licence area become the property of the Government without compensation and free of mortgages; the Government may buy any movable plant, equipment and supplies within 30 days at the lower of fair market value and net depreciated book value for income tax purposes; and anything not bought or removed within 60 days also passes to the Government (Article 26). A lender taking security over fixed plant should therefore negotiate RMB's consent and a step-in right before financial close.

Local content: Rwandan staff, contractors and goods

The statutory rule is in Article 72 of the Mining Law, which applies to every licence holder. It must give preference to Rwandan contractors for works and services where their rates, quality and delivery schedule are competitive with foreign contractors, give preference to materials produced in Rwanda where they are similar in quality, quantity and price to imported ones, and provide periodic reports to RMB on compliance. Article 72 contains no percentage; the figures come from the model agreements.

On people, Article 13 of the Annex III model requires the licensee to comply with the employment and skills transfer plan approved with the licence and to ensure that at least 70% of its employees, workers, contractors and sub-contractors engaged otherwise than as manual or unskilled labourers are Rwandans. Where the licensee shows RMB that no Rwandan has the skills for a particular position, it must ensure that a Rwandan is trained to occupy it within 3 years. No one other than a Rwandan may be engaged in a manual or unskilled position, no child may be employed, employment practices must comply with Rwandan employment, labour, gender and human rights laws, and an annual report must show the total workforce by nationality and category and the training and skills transferred. These commitments sit on top of the general immigration rules for foreign staff, explained in Work permits and residence permits.

On goods and services, Article 14 of the model requires compliance with the procurement plan for local goods and services and value addition approved with the licence, and preference for goods and services produced or supplied by a Rwandan where they meet the relevant standard and the price is within 10% of the price of the same goods or services from a non-Rwandan (the text reads 'not more than ten (10%) percent of the price', which is applied as a 10% margin). The licensee must cooperate with RMB and other agencies in identifying goods and services that Rwandan suppliers can develop and in supplier capacity programmes, and report on compliance with the plan within 30 days after the end of each calendar year. The value-addition element links to the fiscal regime: processing and value addition in mining is a priority activity under the Investment Code, raw exports bear an additional export tax under Law N° 056/2024, and the 15% exporter rate does not apply to exporters of unprocessed minerals (Mineral tax, royalties and fiscal terms; FAQ 107).

Community: the development and social welfare plan

Article 74 of the Mining Law requires the holder of a licence for mining or quarry operations to prepare a plan for development and social welfare in collaboration with the authorities of the District where it operates, and to submit the plan agreed with the District to the authority that issued the licence. A community development plan is also one of the documents RMB's mining licence application form requires. Article 17 of the Annex III model adds that the plan must be consistent with the District's own development plan, may be revised in collaboration with the local authorities, and may be implemented through an agreement between the licensee and the District. Neither the law nor the model sets a minimum spend or a percentage of revenue; the content is negotiated, and RMB and the District will compare it with the scale of the project.

Landowners are dealt with separately. Under Article 3(a) of the Mining Law all rights of ownership and control of minerals in, under or upon any land are vested in the State notwithstanding private ownership of the land, and Article 4 requires a mining licence holder to pay the landowner or lawful occupier fair compensation before operations start, after which the land is registered to the State; for exploration and quarrying a written lease is used and the land is returned afterwards. The model agreement repeats the duty to avoid disturbance and to pay fair and adequate compensation where damage cannot be avoided (Article 29), and compensation or resettlement of affected occupiers is a condition precedent to mining. Where agreement cannot be reached, Article 5 of Law N° 32/2015 of 11/06/2015 relating to expropriation in the public interest lists 'minerals and other natural resources in the public domain' among the activities of public interest, and its valuation rules and deadlines are explained in Expropriation and compensation.

Environmental and social impact assessment

Article 38 of the Mining Law requires the holder of an exploration licence, a small-, medium- or large-scale mining licence, a mineral processing licence, or a commercial small-scale or industrial quarry licence, before starting operations, to submit to RMB the report on the environmental impact assessment and social welfare study approved by the relevant official. The procedure is now set by Ministerial Order N° 003/MoE/25 of 19/08/2025 relating to environmental and social impact assessment, which, according to press reports of September 2025, replaced the 2019 order. RDB's published procedure has four stages: an online application through the RDB One Stop Centre, a site visit by RDB, a study carried out by licensed experts, and the issue of RDB's certificate with signed conditions of approval. Reports on the 2025 Order describe expanded social content, including gender, labour, resettlement and grievance mechanisms; the full text of the Order should be checked for the precise requirements.

The assessment is the base for much of what follows. The environmental management plan that a mining application must contain is drawn from it, the rehabilitation duty in Article 39 is measured against it, and the amount of the rehabilitation guarantee equals the liabilities in that plan. A project that changes its mine plan, adds a processing plant or expands its footprint should expect to revisit its certificate before doing so, because Article 4 of the model agreement requires every environmental approval to be in place before an activity that may affect land, air, water or forest resources.

Rehabilitation and the guarantee

Article 39 binds every licence holder to rehabilitate and reinstate boreholes and excavations, replant, remove buildings and level any area affected by exploration, mining or quarrying, on the basis of the environmental impact assessment and the environment law. Article 40 requires a rehabilitation plan with planned activities and a budget, and keeps the holder liable for environmental protection until a final rehabilitation certificate is issued by the authority in charge of environmental protection, the Rwanda Environment Management Authority (REMA). Article 41 requires a rehabilitation guarantee whose nature, amount and deposit are set by RMB regulations.

Pending new regulations RMB applies Regulations of the CEO N° 001/MINES/RMB/2019 of 18/07/2019 determining the nature, amount and deposit of the environmental rehabilitation guarantee. The guarantee may be a cash deposit or a bank guarantee (Article 3), and its amount must equal the liabilities of the licence holder under the environmental management plan (Article 4). The holder sets the rehabilitation budget by reference to the value of the environment that may be degraded; if the RMB Chief Executive Officer finds the budget intentionally or erroneously undervalued, the holder must revise it at its own cost (Article 5). The guarantee is composed of 10% non-refundable and 90% refundable (Article 6), and is deposited in the account of the National Fund for Environment before operations start (Article 7). After completing rehabilitation the holder asks the environmental authority for a certificate of completion; three years after that certificate it may ask for a certificate of non-outstanding liabilities (Article 8), and with that certificate it applies to the National Fund for Environment for the refund (Article 9).

Failure to rehabilitate exposes a mining licence holder to an administrative fine of RWF 5,000,000 to RWF 10,000,000 and an order to make restitution, and, where infrastructure or community property is damaged, an order to rehabilitate or compensate it (Article 55); the quarry equivalent is RWF 3,000,000 to RWF 5,000,000 (Article 60). Closure must be planned: the Mining Law requires notice to RMB one year before closure, and after cancellation of a licence the holder has 90 days to rehabilitate and clear its liabilities (Article 37).

Health, safety and explosives

Article 42 requires the licence holder to ensure that the mine is commissioned, maintained and decommissioned without compromising the health and safety of workers and others, and that everyone working there has the necessary skills, competence and resources. An authorised officer who considers that operations endanger anyone may take an urgent decision requiring the danger to be rectified immediately or operations to be suspended until it is removed; the holder may appeal to the head of the organ that issued the licence. Failing to insure employees, to pay them in accordance with the law or to provide protective equipment leads to provisional suspension of the licence (Article 52), and non-compliance with health, safety and environmental standards to a fine of RWF 1,000,000 to RWF 3,000,000, or RWF 3,000,000 to RWF 5,000,000 if it causes environmental destruction (Article 62). RMB publishes Mining Safety Standards and occupational health and safety guidelines that set the operating detail (FAQ 111).

Article 43 requires the prior authorisation of the Minister in charge of internal security, on RMB's recommendation, for the import, export, manufacture, transport, trade, transfer or use of dynamites in mining and quarry operations, and prohibits expired dynamites. RMB still lists Ministerial Order N° 013/MOJ/AG/19 of 16/07/2019 on dynamites, and its online system takes applications for blasting recommendations. Unauthorised transfer or use of expired dynamites is an administrative fault punished by a fine of RWF 5,000,000 to RWF 10,000,000 (Article 61); handling them without a permit is an offence punished by 5 to 7 years' imprisonment and a fine of RWF 40,000,000 to RWF 75,000,000, or RWF 80,000,000 to RWF 100,000,000 for a company (Article 70).

Artisanal and small-scale mining in the supply chain

Rwandan law has no separate artisanal mining permit. The formal route for artisanal and small-scale miners is the small-scale mining licence, of up to 50 hectares under Article 8 of the Mining Law, which Article 9 of Regulations of the CEO N° 005/MINES/RMB/2019 of 18/07/2019 reserves to mines 'owned by Rwandan nationals'. Secondary sources estimate that artisanal and small-scale operations account for about 80% of the sector. A foreign investor therefore meets artisanal production mainly as a buyer, trader, processor, service provider or, for a large-scale licensee, as a neighbour whose ground may be worked by others.

The criminal provisions make that interface sensitive. Mining without a licence is punished by 2 to 5 years' imprisonment and a fine of RWF 25,000,000 to RWF 50,000,000, or RWF 60,000,000 to RWF 80,000,000 for a company, which the court may dissolve (Article 63); allowing unlicensed mining on one's land by 1 to 2 years (Article 66); possessing illegally extracted minerals by 1 to 3 years (Article 64); and trading in them by more than 5 and up to 10 years and a fine of RWF 60,000,000 to RWF 120,000,000, or RWF 130,000,000 to RWF 150,000,000 for a company (Article 65). Minerals found without proof of origin attract an administrative fine of 10% of their value and are confiscated for auction (Article 50). A buyer from small-scale producers therefore needs licence checks, traceability documents and the due diligence described in Sanctions, due diligence and reforms. The December 2025 Regional Economic Integration Framework between Rwanda and the Democratic Republic of the Congo commits both States to formalising artisanal and small-scale mining, including through cooperatives and joint traceability (Strategic minerals and regional deals).

From licence grant to first production

1. Receive the licence and the draft agreementAfter grant, RMB tables the model agreement for the licence category (Annex III for large-scale, IV for medium-scale, V for small-scale). Compare it clause by clause with the commitments in your application file, which become its annexes.
2. Finalise the four plansAgree with RMB the Minimum Work and Investment Commitment, the employment and skills transfer plan, the procurement plan for local goods and services and value addition, and the community development plan, which must first be agreed with the District under Article 74.
3. Obtain the ESIA certificateApply online through the RDB One Stop Centre under Ministerial Order N° 003/MoE/25, host RDB's site visit, commission the study from licensed experts and sign the conditions of approval; submit the approved report to RMB (Article 38).
4. Fund the rehabilitation guaranteeFix the rehabilitation budget from the environmental management plan, pay 10% in cash and provide the 90% balance in cash or as a bank guarantee to the National Fund for Environment, and annex the proof to the agreement.
5. Settle with landowners and occupiersPay fair compensation before operations and arrange registration of the land to the State (Article 4), or resettle occupiers, and keep signed records; this is a condition precedent to mining.
6. Secure explosives and safety approvalsApply through RMB for a blasting recommendation and to the Minister in charge of internal security for authorisation; insure employees and issue protective equipment before work starts (Articles 43 and 52).
7. Sign the agreement and start within 180 daysSign with RMB, start mining within 180 days of the licence, and diarise the recurring dates: monthly royalties, 31 December fees and rent, the 30-day procurement report and the annual employment report.