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The bill revising the Mining Code of Burundi was on the agenda of the Cabinet Meeting


Feb 27, 2023

BUJUMBURA February 27th (ABP) – The bill revising Burundi’s mining code was on the agenda of the Cabinet Meeting held on February 22, 2023 and chaired by the President of the Republic, Mr. Evariste Ndayishimiye, as revealed in the content of the press release issued by the General Secretariat of the Government.

Indeed, the press release specifies that this bill takes into account the mining policy of Burundi adopted on March 16, 2022, as well as the observations resulting from the various consultations between the stakeholders.

Innovations are proposed to allow the State to take advantage of its soil. This is the introduction of production sharing between the State and the operator, the requirement that a product be first processed locally up to a certain percentage before being exported. Other innovations include the insistence that the State be involved in mining activities, the notion of payment for the loss of revenue caused to the State by mining activities, without forgetting the precision of the return-on-investment period which is fixed at 2 years, at the time when this period is not specified in the old mining code, the press release continues to say.

After analysis, that bill was passed with some recommendations. The Cabinet recommended providing for fines and penal servitude in the event of sanctions. The Cabinet called for the exploitation of minerals in a rational way by choosing which ones to exploit, when and for how long to exploit them.

The Cabinet also appreciated the note of motivation of the project of construction of the oil companies in Burundi by means of recommendations. It was recommended to avoid giving the investor exclusive rights to import petroleum products, but to leave the field open to many investors. Another recommendation is to set the import price beforehand. Sites located in Rumonge, Makamba, Gitega, Cankuzo, Ngozi and Cibitoke provinces have been identified and proposed to house future oil parks. The Cabinet recommended granting import authorizations after the construction of those warehouses.

The Cabinet also passed 2 ordinances, a draft amendment and authorized a note. The decrees in question are: the decree on the creation, mission, organization and functioning of the Macroeconomic and Budgetary Orientation Committee (CCMB). It is also the draft ordinance on the creation, missions, organization and functioning of the Technical Committee for monitoring project teams for the implementation of the Unified Strategy for the Computerization of Public Finances.

              View of the Cabinet Members

The endorsement project adopted is that relating to the Projects for the construction of two run-of-river hydroelectric power plants on the Mulembwe river of 9MW and on Ruvyironza river of 1.65MW; under the contract signed between Burundi and Songa Energy Company.

According to that press release, the note which has been authorized is that relating to the international call for expressions of interest for the recruitment of a company or a consortium of mining companies with a view to the exploitation of nickel and associated minerals in Burundi.

The President of the Republic has, in the miscellaneous items, called for budgetary discipline. He also called for encouraging Burundian youth, being leaders of all African youth in the initiation of self-development projects. Mr. Ndayishimiye wants the capital of African youth to be in Burundi. To achieve this, he advocates the construction of the African Youth House, according to the same press release.