MADAGASCAR has ended a 16-year suspension on issuing mining permits for most minerals, though gold licences remain frozen due to regulatory inadequacies, according to a report by Reuters.
The moratorium, imposed in 2010 to enable comprehensive review of the country’s mining governance framework, has left approximately 1,650 permit applications pending with authorities as of 2023, said Reuters citing a report published last year by the Extractive Industries Transparency Initiative.
Mines Minister Carl Andriamparany announced the decision at a press conference, describing permits as essential instruments enabling operators and investors to conduct lawful business.
Mining represents a vital pillar of Madagascar’s economy, with principal exports comprising nickel, cobalt, graphite and ilmenite, said Reuters. The Ambatovy nickel-cobalt operation stands as the nation’s premier mining venture, drawing substantial foreign capital and generating significant export revenues, it added.
However, authorities determined the gold mining ban must continue following revelation of stark inconsistencies between official production figures and artisanal mining activity. Government statistics recorded merely 13 kilograms of declared gold output over the past year, which Andriamparany characterised as negligible relative to observed nationwide mining intensity.
The minister acknowledged the government’s present incapacity to implement effective sector regulation and establish robust monitoring systems for gold operations, necessitating continuation of the prohibition until adequate controls can be instituted.
