Burundi Musongati Mining
Burundi Musongati Mining is a Burundi-based public-private mining enterprise established to develop the Musongati nickel and associated-minerals deposit in Rutana Province.
Last updated November 4, 2026
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Overview
Burundi Musongati Mining, commonly abbreviated BMM, is a Burundian public-private mining enterprise associated with the development of the Musongati nickel deposit in Rutana Province. The project concerns a large lateritic ore body containing nickel together with iron, cobalt, platinum-group metals, copper and gold. Although the deposit was identified decades ago and received substantial exploration attention, the proposed mine and processing complex did not reach commercial production in the period covered by the available references. Nickel laterites in the Musongati area were identified in 1972 during a joint exploration program involving the Burundian government and the United Nations Development Programme. Exploration and technical work continued during the 1970s and 1980s. The UNDP-funded program included extensive drilling, metallurgical testing and infrastructure planning, but conflict in Burundi and the wider region eventually interrupted the effort. Later estimates associated with the project placed the deposit at approximately 150 million tonnes, although the available reference does not establish a commercially proven reserve figure. A new phase began after Kermas, a Russian group registered in the British Virgin Islands, acquired Samancor Chrome in 2005. Kermas subsequently created Samancor Nickel in Hong Kong. In December 2008, Samancor Nickel received a three-year exploration permit covering Musongati, Waga and Nyabikere. Kermas financed exploration and the process of obtaining an exploitation permit, while its South African subsidiary created Burundi Mining Metallurgy International, or BMM International, as a majority-owned project vehicle. Exploration drilling associated with this phase reportedly reached about 25,000 metres. In May 2014, Burundi signed an exploitation agreement with BMM International. The agreement created the BMM-SM joint venture, with BMM International holding 85% and the Burundian state holding 15% as the owner of the country's subsurface resources. The project was conceived as an integrated mining, processing and infrastructure development rather than merely an ore-export operation. Plans called for an approximately US$650 million refinery capable of processing up to one million tonnes annually as the project expanded. The proposed infrastructure package also included about US$60 million in basic infrastructure, three hydropower plants on the Ruvubu River with combined capacity of roughly 50 megawatts, and a railway connection toward Tanzania for export logistics. The anticipated revenue mix reflected the polymetallic character of the deposit. Nickel was expected to provide the largest share, followed by iron, cobalt, platinum-group metals, copper and gold. The Burundian government formally launched mining activities at the Musongati site in October 2014. In practice, however, development advanced slowly. After receiving the license, BMM reportedly carried out only limited testing and did not proceed to mine construction. The company was expected to mobilize funds for hydropower facilities and begin mine development within specified periods, but financing, power supply, transport infrastructure and broader political and market conditions remained obstacles. Burundi's political crisis beginning in 2015 weakened public finances and disrupted development planning. Foreign aid declined, while tax and export revenues fell. By November 2015, Kermas was reported to have spent nearly US$95 million on the project, but the Musongati site had no workers and the company did not expect to make a government payment that year. Estimates for the necessary energy infrastructure reached as high as US$2 billion, making outside financing essential. Falling nickel prices further reduced the attractiveness of the project. The proposed Uvinza-Musongati railway, intended to connect the mine to Tanzania and ultimately the port of Dar es Salaam, also remained at the study and design stage. In 2019, a company spokesperson attributed the lack of progress to the absence of reliable power and the unbuilt railway. Solar power had reportedly been considered but rejected. On 3 March 2022, Burundi revoked BMM International's nickel mining license by presidential decree. The stated reference does not give a reason for the revocation. Later that month, the government signed a memorandum of understanding with East African Region Group to replace BMM in developing the Musongati project. In 2023, Burundi's council of ministers was still seeking an experienced foreign company or consortium to mine, refine and market nickel and associated minerals in Rutana Province. Accordingly, BMM is best understood as the former project vehicle for an unrealized strategic mining development, with its post-revocation corporate status not established by the available material.
History
The Musongati project originated in the discovery of nickel laterites in 1972 during a joint exploration program by Burundi and the United Nations Development Programme. Exploration continued through the 1970s and 1980s, with drilling, testwork and infrastructure studies intended to determine whether the deposit could support a commercial mining and processing operation. The program was ultimately interrupted by Burundi's civil war and related regional instability. A second development phase followed Kermas's acquisition of Samancor Chrome in April 2005. Kermas, a Russian group registered in the British Virgin Islands, renamed the acquired operation Kermas South Africa and established Samancor Nickel in Hong Kong. In December 2008, Samancor Nickel received a three-year exploration permit for the Musongati, Waga and Nyabikere areas. Kermas financed exploration and the work needed to obtain an exploitation permit. BMM International was created as a majority-owned project subsidiary, and later exploration included approximately 25,000 metres of drilling. The deposit was estimated at about 150 million tonnes in project descriptions. In May 2014, Burundi concluded an exploitation agreement with BMM International. The resulting BMM-SM joint venture gave BMM International an 85% interest and the Burundian state a 15% interest reflecting its ownership of the subsurface resources. The development concept was ambitious: an approximately US$650 million refinery, initial infrastructure spending of around US$60 million, three hydropower plants on the Ruvubu River with combined capacity of approximately 50 megawatts, and a railway route toward Tanzania. The proposed refinery was intended to process up to one million tonnes annually as operations expanded. The expected mineral revenue mix included nickel, iron, cobalt, platinum-group metals, copper and gold. Mining activities were formally launched at the site in October 2014. The project then stalled. Available accounts state that BMM conducted only limited testing after receiving its license and did not proceed with mine construction. It was expected to arrange financing for power facilities and begin mine development, but its progress was constrained by the lack of electricity, transport links and investment capital. Burundi's 2015 political crisis reduced foreign aid and government revenue and delayed major development projects. By November of that year, Kermas was reported to have spent close to US$95 million, while the Musongati site had no workers and no government payment was expected for that year. The infrastructure challenge was particularly significant. Estimates indicated that the required energy system could cost up to US$2 billion, and the project depended on external partners and institutions for financing. A proposed 200-kilometre standard-gauge Uvinza-Musongati railway was intended to carry mineral output from Musongati to Uvinza in Tanzania, where goods could connect with the route to Dar es Salaam. By December 2016, detailed engineering work had been delayed by budget constraints. In 2019, a company spokesperson said BMM could not advance because both power and the railway were unavailable. Solar generation had been considered but rejected. Market conditions added another difficulty. In 2016, Burundi's mines minister pointed to the decline in world mineral prices, including a fall in nickel from approximately US$54,000 per tonne at the beginning of 2006 to about US$9,219 per tonne at the beginning of 2016. Such conditions weakened the economic case for a capital-intensive mine, refinery and infrastructure network. On 28 February 2018, a presidential decree appointed Augustin Manirakiza as the state administrator on the BMM board. This appointment did not lead to documented commercial production. On 3 March 2022, Burundi revoked BMM International's nickel mining license by presidential decree; the available reference does not provide a reason. On 25 March 2022, Burundi signed a memorandum of understanding with East African Region Group concerning replacement development of the Musongati mine. In February 2023, the council of ministers said that Burundi was seeking an experienced foreign firm or consortium to develop, refine and market the nickel and associated minerals. The available material therefore records BMM primarily as a stalled and later displaced mining project rather than an operating producer.
- 2023
Government seeks new project developer
[1]The council of ministers reported that Burundi was looking for an experienced foreign firm or consortium to develop the deposit.
- 2022
BMM International license revoked
[1]Burundi revoked BMM International's nickel mining license by presidential decree.
- 2022
Replacement development memorandum signed
[1]Burundi signed an MOU with East African Region Group for replacement development of the Musongati nickel project.
- 2018
State board administrator appointed
[1]Augustin Manirakiza was named the administrator representing Burundi on the BMM board.
- 2014
BMM-SM joint venture established
[1]Burundi signed an exploitation agreement with BMM International, creating a joint venture with an 85% BMM International and 15% state ownership structure.
- 2014
Mining activities launched
[1]The Musongati mining project was formally launched in October, with plans for a refinery, power generation and export railway.
- 2008
Exploration permit granted
[1]Samancor Nickel received a three-year exploration permit covering Musongati, Waga and Nyabikere.
- 2005
Kermas acquires Samancor Chrome
[1]Kermas acquired Samancor Chrome and later reorganized its nickel-related activities through Samancor Nickel.
- 1972
Nickel laterites identified at Musongati
[1]Burundi and the United Nations Development Programme identified nickel laterites near Musongati during a joint exploration program.
Products and positioning
A strategic Burundian mining venture intended to develop a large polymetallic laterite deposit through integrated extraction, refining and export infrastructure.
Nickel ore
Musongati nickel laterite
The principal planned product was nickel-bearing lateritic ore from the Musongati deposit near Musongati in Rutana Province. The project was designed around mining and processing the deposit rather than around an established commercial output stream. Available descriptions also associate the ore body with iron, cobalt, platinum-group metals, copper and gold.
Mineral processing
Musongati integrated refinery
BMM's development plan included an approximately US$650 million refinery intended to process up to one million tonnes per year as the operation expanded. The refinery was part of the proposed integrated mine, power and export system, but the available material does not indicate that it was built or commissioned.
Brand decisions
2022
Nickel mining license revokedOtherBackground
BMM International had not advanced the project to documented commercial mining, with power, railway and financing remaining unresolved.
Action taken
Burundi revoked BMM International's nickel mining license by presidential decree on 3 March 2022.
Aftermath
Burundi signed a replacement development memorandum with East African Region Group later that month and subsequently sought another experienced developer.
2014
Adopt integrated mine-and-infrastructure development planStrategyBackground
The Musongati project required processing capacity, electricity generation and transport links in addition to the mine itself.
Action taken
The parties planned a refinery, three hydropower plants and a railway connection through Tanzania, alongside mine development.
Aftermath
The infrastructure requirements proved difficult to finance and deliver, and the project did not reach documented commercial production.
Planned refinery investment. US$650 million (2014 plan)
Sources1 sources
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