Still No New Mining Permits in Madagascar

Waiting on the government before firing up new excavation
Waiting on the government before firing up new excavation
Yermolov | Shutterstock

Want a mining permit in Madagascar? You're going to have to wait.

The Mining Cadastre Bureau of Madagascar (BCMM) announced in early March 2018 that it will continue its self-imposed moratorium on the issuance of new mining permits.

BCMM Director-General David Ratsimbazafy expressed dissatisfaction with the quality of mining applications he had seen. Mining project operators are required to craft a formal operating plan, including production estimates, projected job creation estimates, and a list of equipment used to mine.

"This will allow the government to calculate royalties, and will also enable the mining company to estimate its potential profits. It also ensures that an appraisal of the contribution of the mine to local socio-economic development is not left out. Our goal is to clean up the sector in partnership with Madagascar's mining regulators to eliminate speculation in mining permits,” said Mr. Ratsimbazafy.

Madagascar boasts a rich array of valuable minerals, including iron, manganese, and copper. It is also home to the Ambatovy mine, one of the world's largest producing nickel/laterite mines.

This news from the BCMM has significant implications for proposed and active mining projects. Those interested in entering the industry with a fresh project will have an indefinite wait ahead of them; they may be better off looking to invest in a pre-existing, active mine. As well, active projects needing new permits to expand the scope of their work (such as exploration of an area for potential mineral deposits) will have that expansion stalled.

If you have any questions about what the continued moratorium means for your mining project in Madagascar, or the effect it has on any proposed project you have in mind, please do not hesitate to contact us.

Sources

Tags: mining mining permit