Rwanda: Secures 25% Almonty JV Equity for US Tungsten Supply

• Rwanda's government has acquired a 25% equity stake in a new tungsten venture with US-listed Almonty Industries, contributing the Shyorongi concession and a processing license.
• This partnership aims to broaden Rwanda's role in the US tungsten supply, building on existing shipments from Trinity Metals' Nyakabingo mine to Global Tungsten & Powders in Pennsylvania.
• The initiative seeks to address a widening tungsten supply deficit in Western countries, which are diversifying away from China, the dominant global producer.
• Almonty Rwanda plans to collect and upgrade existing tungsten material from small-scale miners while developing a long-term collection and processing plant and exploring the 32-square-kilometer Shyorongi block.
• Rwanda, ranked the world's sixth-largest tungsten producer in 2024, is leveraging this direct equity model to capture more value from its critical mineral resources.

This strategic move by Rwanda, taking a direct equity position rather than simply regulating a foreign investor, signals a deeper intent to capture value and influence its critical mineral sector.

Rwanda has significantly deepened its involvement in the global supply chain for tungsten, a strategically vital mineral, by securing a 25% equity stake in a new venture with US-listed Almonty Industries. This agreement, formalized on September 14, establishes Almonty Rwanda, with Almonty Industries holding the remaining 75% ownership. Rwanda's contribution to this partnership includes the Shyorongi tungsten exploration concession, located in the Rulindo district, alongside a mineral processing license.

Tungsten is highly prized for its exceptional hardness, density, and resistance to heat, making it indispensable across various high-tech applications. It is a critical component in defense equipment, aerospace manufacturing, advanced electronics, and industrial machinery. This new collaboration aims to bolster the Rwanda Almonty US tungsten supply, leveraging Rwanda's mineral resources to meet international demand.

The formation of Almonty Rwanda comes at a time when Western nations are actively seeking to diversify their sources for critical minerals, particularly as China maintains a dominant position in the global tungsten market, accounting for approximately 82% of mined production. The strategic importance of tungsten has escalated following China's introduction of export controls on certain tungsten-related materials and technologies, prompting a global scramble for alternative supplies.

This partnership builds upon an existing supply relationship that has already seen Rwandan tungsten enter the US market. Earlier this year, material from Trinity Metals’ Nyakabingo mine began arriving at Global Tungsten & Powders (GTP) in Pennsylvania, establishing Rwanda as a new source of tungsten concentrate for American industries. By June, over 320 tonnes of high-grade concentrate had been shipped from Nyakabingo to GTP. These shipments, according to Trinity Metals, represented up to 20% of US primary tungsten concentrate consumption, supplying material processed into tungsten powders for US defense and industrial customers. The United States currently has no domestic mined tungsten production, making reliable international sources like Rwanda increasingly crucial.

This strategic move by Rwanda, taking a direct equity position rather than simply regulating a foreign investor, signals a deeper intent to capture value and influence its critical mineral sector. The government's direct equity participation provides an opportunity to maximize economic benefits from a mineral where Rwanda already holds a significant global standing; the US Geological Survey ranked Rwanda as the world’s sixth-largest tungsten producer in 2024, contributing about 1.6% of global production, and also ranked it third globally in an unspecified category.

Almonty CEO Lewis Black highlighted the immediate opportunity to utilize existing material from Rwanda's small-scale license holders, including ore, pre-concentrate, and panning tailings. Almonty Rwanda plans to collect, upgrade, and export this material while simultaneously developing a comprehensive collection and processing plant. The overarching objective is to address a widening tungsten supply deficit in Western markets by combining existing production with modern processing techniques, enhanced traceability, and Almonty's exploration program, all with the Rwanda government as an equity partner. Initially, acquired material can be exported or upgraded at other Almonty facilities, and a mobile processing unit is planned for temporary deployment near tailings dams to recover additional tungsten without delay. The longer-term vision includes establishing a central collection and processing plant in Rwanda, alongside exploration activities within the approximately 32-square-kilometer Shyorongi block.

This development signals Rwanda's strategic intent to deepen its involvement in critical mineral value chains through direct equity participation, potentially influencing future mining concession terms and foreign investment structures. Lawyers advising companies in the critical minerals sector should monitor evolving government partnership models and supply chain diversification efforts, particularly for US defense-related procurement and compliance.

Source: Original reporting via The East African