The EU and Rwanda have successfully launched a sustainability-oriented agreement aimed at ensuring that a large portion of industries can generate an equivalent value to the raw materials used for the European energy transition. This initiative was prompted by China’s control over the vast majority of industries globally.
The Significance of the Proposed Sustainability Contract
The significant agreement between the EU and Rwanda signals an intent to strengthen this contract, particularly for the value chain of these major minerals, initially benefiting Rwanda’s economy. The elements required to generate this energy possess exceptional physical properties, making them indispensable.
Rwanda boasts a special and favorable climate, potentially positioning it as a hub for value addition within the mining sector. Additionally, it is home to the only active tin smelting plant in Africa, which is set to be operational soon.
The required minerals are Tantalum and Niobium, both of which possess the necessary physical properties for digitizing the economy and low-carbon technologies. The mentioned agreement aims to build partnerships with resource-rich countries. The cooperation between the EU and Rwanda encompasses various areas.
Pursuing Clean Energy and New Minerals
Tantalum is a metal highly resistant to corrosion, used in superconductors, special steel alloys, and as an ultra-refractory material. It is sourced from tantalite ore, a strategic resource crucial for manufacturing advanced electronic components, notably compact electrolytic capacitors.
For the EU’s part, the association contributes to ensuring significant sustainability in the supply of critical raw materials, essential for achieving green and clean energy goals. The EU has already begun building partnerships with third-party resource-rich countries.
Remarkable Comments and Partnerships
Notably, there were remarkable comments from two key figures. Thierry Breton, Commissioner for Internal Market, stated, “Our goal with this partnership is to build a resilient and sustainable value chain for critical raw materials spanning extraction. Transparency, traceability, and investment are central elements of the EU-Rwanda partnership regarding fundamental raw materials.”
Vincent Biruta, Minister of Foreign Affairs of Rwanda, remarked, “This agreement further ensures the quality and traceability of our raw materials, reaffirming Rwanda as a reliable partner in international trade. Rwanda values its partnership with the EU and looks forward to further strengthening our growing cooperation.”
Details of the New Agreement
The new agreement signed by the EU and Rwanda primarily establishes cooperation in five areas: Integration of raw material value chains, cooperation to achieve sustainable, responsible production of critical and strategic raw materials, mobilization of financing for necessary infrastructure deployment, research and innovation, and knowledge and technology exchange related to exploration and capacity building for enforcing relevant standards.
In conclusion, this new contract achieves something unexpected and remarkable, providing a new opportunity for various countries and partnerships. The agreement with Rwanda follows those reached with the Democratic Republic of Congo and the Republic of Zambia at the Global Gateway Forum on October 26, 2023, and with Namibia on November 8, 2022. The EU’s contracts within sustainable raw material value chains continue to be upheld with countries including Argentina, Canada, Chile, Greenland, Kazakhstan, and Ukraine.