Open information system of the National Committee EITI Madagascar

1. EITI implementation framework in Madagascar

The mining sector plays a crucial role in the country’s economy, accounting for a significant share of exports. 

In 2008, the Government of Madagascar took a decisive step by deciding to become a candidate country for the Extractive Industries Transparency Initiative (EITI). Since then, EITI Madagascar has published 12 annual reports, the most recent of which covers the year 2022 and was published on December 31, 2024. This commitment aims to ensure better governance of the sector and to promote transparency in the management of non-renewable natural resources.

The Décret n° 2023-335 du 30 mars 2023 establishes the legal status of EITI Madagascar as an administrative public institution with an economic purpose and defines the respective responsibilities of each member within the multi-stakeholder group, while theArrêté n° 35831/2024 du 12 décembre 2024 concerns the appointment of the members of the National Committee. 

The figures below illustrate the representation of the National Committee members by college :

The National Committee is composed of 56,52% men and 43,47% women.

2. Contribution to the Economy

The extractive sector’s contribution to the national economy in 2022 is 4,50% of GDP.

Source : 2022 EITI Report

The total revenue generated by the extractive sector for the 2022 fiscal year amounts to 327.160.000.000 MGA.

Source : 2022 EITI Report

Source : 2022 EITI Report

The total revenue generated by the extractive sector in Madagascar in 2022 increased by 58.376.346.698 MGA compared to the 2021 fiscal year, thus recording an increase of 21.72%.

3. Legal framework and Contracts

3.1. Legal framework

In Madagascar, the extractive sector is governed by the following legal texts:

  • Code Minier : a general legal framework broadly applicable to the mining sector; 

Petroleum Code : 

Under the Loi n°96-018 du 4 septembre 1996 portant Code Pétrolier and the Décret n°97-740 du 23 juin 1997 relatif aux titres miniers d’exploration, d’exploitation et transport d’hydrocarbures, a technical body is designated by decree to represent the Government (Article 2). Article 3, paragraph 1, of this law specifies that this body acts as the manager of the national hydrocarbon mining domain and entrusts all operations of prospecting, surveying, exploration, production, processing, and transport of hydrocarbons within the national mining domain to a National Company responsible for upstream hydrocarbon activities, either solely or in partnership with other petroleum companies, all under its supervision. Article 12 stipulates that any upstream activity in the national mining domain may only be conducted under a petroleum contract concluded with the National Company. 

Upstream petroleum operations can be classified according to the exploration areas :

– Onshore petroleum operations (on land) ;

– Offshore petroleum operations (at sea) within the universally recognized territorial marine limits.

Law on Large-Scale Mining Investments (LGIM) :

In the extractive sector, only the Ambatovy project is governed by the Law on Large-Scale Mining Investments (LGIM).

The Ambatovy project (AMSA and DMSA) in eastern Madagascar (Atsinanana and Alaotra Mangoro regions) is a major industrial company for the extraction and refining of nickel and cobalt. Its production targets are set at 60,000 tons of nickel and 5,600 tons of cobalt per year. Valued at USD 5.5 billion with an operational lifespan of 29 years, it is the largest foreign investment in Madagascar and one of the most significant in sub-Saharan Africa. Ambatovy ranks among the world’s largest lateritic nickel companies. Following a five-month suspension of activities in 2020 due to the COVID-19 pandemic, Ambatovy resumed operations in 2021.

Ambatovy paid nearly USD 44 million in taxes, duties, and royalties for the 2022 fiscal year and spent over USD 340 million on the purchase of goods and services in the local market. In September 2020, all payments to the beneficiary entities of rebates distributed by Ambatovy were suspended. Challenged by the decline in metal prices, the Malagasy giant is struggling to survive in a global market where several of its competitors have exited since 2023. The Council of Ministers, on 3 April 2024, approved authorization for Ambatovy to sell Ammonium Sulfate (SA) on the domestic market beyond the 10% limit set by the LGIM, to support agricultural development and production in rural areas.

Mining Code : 

Following various consultation workshops led by the Ministry in charge of Mines in March 2022, still within the framework of drafting a new law for the mining sector, the Loi n°2023-007 du 27 juillet 2023 revising the Mining Code was enacted on 2 October 2023. The revision focuses on the following key areas :

  • Strengthening the role of the State and Decentralized Local Authorities in the governance of the sector ; 
  • The consideration of Strategic Mineral Substances ; 
  • The protection of mining rights and investments ; 
  • Aligning mining projects with local communities ; 
  • The redefinition of the Mining Permits and Quarries regimes ; 
  • The reorganization and formalization of the gold sector through a responsible gold supply chain ;
  • The reorganization of the gemstone and semi-precious stone sector ; 
  • The establishment of a fair mining fiscal regime ; 
  • The professionalization of artisanal mining by nationals ; 
  • The financial valorization of operations related to granted mining rights ;
  • The reformulation of the link between mining rights and environmental and social standards ;
  • The promotion of mining exploration, which forms the basis for the future development of large-scale mining activities ;
  • The fight against negative speculation in the mining sector ;
  • The management of rushes through the Artisanal Mining Exploitation Permit ; 
  • The promotion of local content ; 
  • The establishment of a Mining Social and Community Investment Fund ; 
  • Aligning mining penalties with the significance of the resources;
  • The restructuring of the institutional framework.

Under Article 346 of Loi n°2023-007 du 27 juillet 2023 revising the Mining Code as previously mentioned, any operator having reached a minimum investment threshold may request the benefit of the special regime under the Loi sur les Grands Investissements Miniers (LGIM)The LGIM will undergo amendments within the next two (02) years, for which a public consultation was held on 3 December 2024. The special regime granted covers fiscal, customs, and foreign exchange matters. Under the previous law governing the mining sector, only investors with investments of 50 billion Ariary or more could opt for this special regime. It should be noted that, since the implementation of this approach in the mining sector, only the Ambatovy Project has been eligible for this regime.

Establishment Agreement between the Government and QMM : a convention enacted as law, applicable exclusively to QMM :

For the mineral sands project of QMM – Rio Tinto in the Anosy region, an Establishment Agreement was concluded between the company and the Malagasy State, and ratified by Law No. 98-002 of 19 February 1998 authorizing the ratification of the Establishment Agreement between the Malagasy State, represented by the Office des Mines Nationales et des Industries Stratégiques (OMNIS), and QIT-Fer et TITANE INC. for mining exploration and exploitation, including the separation, enrichment, and processing of minerals found in the Taolagnaro mineral sand deposits, as well as the export and marketing of minerals extracted from these sands. As the fiscal and customs provisions expired in February 2023, the Malagasy Government, by Interministerial Decree No. 12121/2022 of 26 April 2022, established a Renegotiation Committee to draft a new Establishment Agreement between the Malagasy State and QIT-Fer et Titane Inc. The Presidency of the Republic, the Prime Minister’s Office, the Ministry of Mines, the General Directorate of Customs, the General Directorate of Taxes, and OMNIS were respectively represented in this team. Following numerous negotiations conducted by H.E. the President of the Republic with the aforementioned mining company, a Memorandum of Understanding was agreed on 22 August 2023 to accompany the aforementioned Establishment Agreement. Loi n°98-002 du 19 février 1998 authorizing the ratification of the Establishment Convention between the Malagasy State, represented by the National Office of Mines and Strategic Industries (OMNIS), and QIT-Fer et Titane Inc., for the exploration and mining operations, including the separation, enrichment, and processing of minerals found in the mineral sands deposits of Taolagnaro, as well as the export and marketing of the minerals extracted from these sands. Since the fiscal and customs provisions expired in February 2023, the Malagasy Government, through l’Arrêté interministériel n° 12121/2022 du 26 avril 2022established a Renegotiation Committee with the aim of drafting a new Establishment Convention between the Malagasy State and QIT-Fer et Titane Inc. The Presidency of the Republic, the Prime Minister’s Office, the Ministry of Mines, the General Directorate of Customs, the General Directorate of Taxes, and OMNIS were each represented within this team. Following numerous negotiations conducted by His Excellency the President of the Republic with the aforementioned mining company, a Memorandum of Understanding was agreed upon on August 22, 2023, as a supplement to the aforementioned Establishment Convention.

The content of this Memorandum of Understanding between the Malagasy State and QMM specifies :

  • Cancellation of the capital increase debt : The advance paid by QMM to the Malagasy State for the capital increases in 2012 and 2015, amounting to USD 77.2 million, is immediately cancelled. To account for capital variations, particularly capital increases, the State now holds 15% of non-dilutable shares on a free carry basis (entitled to dividends) and retains 20% of voting rights, maintaining two representatives on the Board of Directors. 
  • Payment of Advance Dividends for 2023 : QMM will immediately pay USD 12 million to the Malagasy State as advance dividends. However, a decision was made by the Council of Ministers to transfer OMNIS’s shares in QMM to the Madagascar Sovereign Fund (FSM). This transfer delayed the payment of the USD 12 million, which has not yet been made in 2024.
  • Profit-Sharing Policy from 2023 onwards : From now on, QMM will pay dividends to the Malagasy State without waiting for the return on investment, amounting to USD 1 billion, up to 2030, by allocating 40% of its profits to the Malagasy State. From 2031 to 2048, this profit-sharing will increase to 60% until the total investment is recovered. It should be noted that QMM currently still owes USD 704 million to its parent company, Rio Tinto.
  • Participation in the construction of RN 13 : QMM will donate USD 8 million once the new agreement comes into effect, to contribute to the construction of the 109 km National Road No. 13. A disbursement of USD 6 million was approved based on the progress of the works in 2024.
  • Establishment of a CSR Budget : The CSR budget allocated to the social component for Madagascar will be USD 4 million per year, of which USD 500,000 will be dedicated to reforestation, 50% of the remaining amount will be invested in local municipalities affected by the mining project, and the other 50% will be allocated to the region where the extraction site is located. This USD 4 million budget will increase by 2% annually.
  • Coverage of Wastewater Treatment Generated by the Project: QMM will allocate USD 13 million to carry out these wastewater treatment works. The Malagasy State must publish a consolidated summary report of the analysis results of the water used in and around the Mandena mine, conducted by the National Water and Sanitation Authority (ANDEA) in collaboration with QMM in May 2022. 
  • Contribution as a Social Investment for the Petriky and Sainte-Luce Deposits : As soon as QMM begins mining operations at the Petriky deposit, it will immediately pay USD 3.3 million to the Malagasy State. Regarding the Sainte-Luce deposit, the company will immediately pay USD 15 million to the Government.
  • Fiscal and Parafiscal Obligations : QMM’s fiscal obligations remain unchanged, except for the professional tax and IFPB, which no longer exist under Malagasy law. This new fiscal arrangement will remain in force for another 25 years and must still be submitted to Parliament as part of the ratification of the Establishment Convention. As for parafiscal obligations, royalties and community payments have been adjusted to 2.5%, compared to 2% in previous years. 
  • Renewable Energy Production Center : Within five years of the new agreement’s entry into force, QMM will be required to install a renewable energy plant in Tolagnaro worth USD 35 million. The facility is expected to produce up to 20 MW of power, which will be made available to the residents of Tolagnaro.
  • Increase in electricity production : QMM is also required to operationalize a second facility to support its annual production, representing an investment of USD 50 million, or to initiate mining operations at Petriky in order to achieve the first commercial production within two years. 
  • Debt relief for JIRAMA : The USD 3 million debt owed by JIRAMA for past electricity supply will be entirely written off under the new agreement.
  • Establishment of a one-stop service : The Malagasy State will contribute to streamlining all administrative procedures to accelerate these additional investments. In particular, it has been decided that a one-stop service will be established to facilitate the various administrative processes.
  • Establishment of a Consultation Committee : An interministerial consultation committee will be established to facilitate information exchange and communication between the Malagasy State and the company, as well as to ensure the monitoring of QMM’s operations. 
  • Carbon Credit : The company will make a direct investment worth USD 5 million to obtain carbon credits for environmental protection in the Tsitongombarika protected area on behalf of the State. It is also planned to purchase additional carbon credits from the Malagasy State worth USD 10 million over the next five years. It should be noted that the use of the revenue generated from these carbon credits will be subject to approval by the Malagasy State in the Council of Ministers.
  • Most recently, at its meeting on 25 September 2024, the Council of Ministers approved QMM’s CSR plan for the 2024–2025 period and the related projects. Following the renewal of the agreement between the Malagasy Government and the company in 2023, Rio Tinto has committed to investing USD 4 million per year, with an annual increase of 2%, over a period of 25 years in the Anosy Region as part of its CSR programme. The identification of priority projects was based on deliberations among decentralized communities and consultations with local populations, coordinated by the Anosy Regional Authority, and is expected to deliver tangible benefits to the local communities.

3.2. Contracts

To date, six petroleum contracts have been proposed for cancellation by OMNIS, pending approval. The list is presented below :

AnnéeSociété pétrolièreLocationTitre
2021CB WORLD TRADE NATURAL ENERGY LTDPérimètre Contractuel BELO PROFOND NORDTitre Minier N°01/16/TM date d’expiration le 23 avril 2024.
2023CANDAX MADAGASCAR LTD ET EASTAFRICAN EXPLORATION LTD (MADAGASCAR)Périmètre Contractuel ANTSIRANANA – Bloc 1101Titre Minier N°32/06/TM expiré le 29 juillet 2019
STERLING ENERGY (UK) LIMITEDsuccédée par PURA VIDA MAURITIUSPérimètre Contractuel AMBILOBETitre Minier N°18/04/TM expiré le 16 juillet 2019.
CB WORLD TRADE NATURAL ENERGY LTDPérimètre Contractuel BELO PROFOND NORDTitre Minier N°01/16/TM date d’expiration le 23 avril 2024.
MAREX MC INC. ET ROC OIL (MADAGASCAR) PTY LTDPérimètre Contractuel BELO PROFONDTitre Minier N°33/07/TM expiré le 30 juillet 2017.
 AMICOH RESOURCES LIMITEDPérimètre Contractuel MANJA – Bloc 3108Titre Minier N°22/05/TM expiré le 14 novembre 2019.

Non-Exclusive Speculative Study Contracts

TypeDuréeObjet
Contrat de licence pour des études géologiques ou géophysiques non-exclusives05 ans renouvelables– Acquisition, traitement et retraitement des données géophysiques ;
– Promotion et ventes de données géologiques ou géophysiques ;
– Promotion des blocs pétroliers libres ou rendus ; 

In the mining sector, the Mining Cadastre Office of Madagascar publishes on its website the mining license register (tabular data), including the following information :

3.3. Disclosure and publication of Permits and Contracts

The publication of Mining Permits is carried out on the website of the Bureau du Cadastre Minier de Madagascar (BCMM).

Following the adoption of the Décret n° 2024-1464 du 23 juillet 2024 concerning the Regimes for Mining, Fossil, and Quarry Permits, permit holders are required to make all contracts and licenses entered into or modified publicly available.

The standard contracts for onshore and offshore blocks in the petroleum sector are published on the website of the l’Office des Mines Nationale et des Industries Stratégiques (OMNIS).

4. Beneficial Ownership :

4.1. Legal framewor

In accordance with the provisions of Article 2 of the Décret n° 2024-1464 du 23 juillet 2024 cited above, beneficial owners of extractive companies are considered to be the natural person(s) who ultimately exercise effective control over at least 5% of the shares or ownership interests. 

The procedure for declaring the related information follows the provisions of theArrêté n°11689/2024 du 10 juillet 2024 implementing the Code of Tax Procedures related to the Registers of Beneficial Owners of legal entities and legal arrangements.

4.2. Effectiveness

The effectiveness of the provisions regarding beneficial ownership depends on the operationalization of the Central Register of Beneficial Owners (RCBE) maintained by the General Directorate of Taxes.

5. Production and export

5.1. Production

5.2. Export

The extractive sector accounted for 43.8% of Madagascar’s exports in 2022,compared to 34% in 2021 and 23.2% in 2020, highlighting a rapid increase in its relative share of the country’s foreign trade.

Total exported volume : 776,455 tonnes of mining products , including nickel, cobalt, ilmenite, zircon, monazite, raw ore, ore slurry, cipolin, clay, pozzolana, gypsum, graphite, chrome concentrate, and chromite rocks.

6. Revenue Collection and Payment Data

Tax and duty payments made by mining companies during the 2022 fiscal year totaled 317.61 billion Ariary,representing 99% of total extractive sector revenues.

The breakdown of revenues by company is presented in the table below :

Oil Sector
Total revenues generated by the upstream oil sector amount to 1.75 billion Ariary for the year 2022.

The breakdown of these revenues by category, by company, and by government agency is presented in the following tables :

Subnational payments

The subnational payments reported by companies within the scope of the report :

SociétéNature des paiementsEntité perceptriceMontants versés
ALPHA CIMENTRedevance sur les flux maritimes BOLLORE
SEAL
1 557 903 757,50
Frais d’Administration minièreBCMM216 030 360,00
Cotisation CNaPSCNaPS510 131 440,00
FMFPFMFP36 437 960,00
Cotisation aux organisations sanitaires d’entrepriseOSIE156 149 670,00
AMBATOVYRedevance commune
Droit de region
SMMC
Bolloré Transport LOGISTICS M/CAR
19 262 572,00
Frais d’Administration minière BCMM216 384 000,00
Cotisation CNAPSCNAPS3 004 410 000,29
Redevances de fréquence Autorité de régulation des technologies56 325 000,00
Droit de port sur les marchandises importées  SMMC69 070 144,00
Redevance sur les flux maritimes Agence Portuaire Maritime et Fluviale (APMF)22 423 342,17
Cotisation aux organisations sanitaires d’entrepriseAMIT ASSOCIATION MEDICALE
OMSI Organisa Medico Sociale Inter
SMIMO SERVICE MEDICAL INTERENTREPRI
1 528 949 809,00
BASE TOLIARARedevances de fréquence ARTEC Tana2 709 000,00
Frais d’Administration minière BCMM246 195 841,00
Cotisation CNAPSCNAPS81 369 801,00
Cotisation aux organisations sanitaires d’entrepriseOSTIE113 441 715,60
FMFPFMFP5 812 128,64
DYNATECDroit de port sur les marchandises importées  MICTSL
SMMC
307 200 340,17
Droit de port sur les marchandises exportées  MICTSL
  
113 703 200,70
Redevance sur les flux maritimes AGENCE PORTUAIRE MARITIME ET FLUVIA322 215 802,81
Frais d’Administration minière BCMM122 265 600,00
Droits d’entrée et redevances pour usage infrastructures : PortSPAT (STE DU PORT A GESTION AUTONO)5 161 629 588,70
Redevances de fréquence ARTEC (AUTORITE DE REGULATION DES TECHNOLOGIE)65 392 500,00
Cotisation CNAPSCNAPS6 090 952 431,69
Cotisation aux organisations sanitaires d’entrepriseAMIT
SMMO
OMSI
4 158 856 057,00
Frais d’évaluation et de suivi de l’impact environnemental ONE47 296 804,00
ERG MADAGASCARCotisation aux organisations sanitaires d’entrepriseFUNHECE3 002 923,12
Frais d’Administration minière BCMM273 689 000,00
Cotisation CNAPSCNAPS6 515 467,28
FMFPFMFP445 389,76
ETS GALLOISCertificat de conformité (Mise en compatibilité – ONE) ONE434 013 415,00
Droit de port sur les marchandises importées  PORT TAMATAVE30 328 924,81
Droit de port sur les marchandises exportées  PORT TAMATAVE95 010 561,89
Redevance sur les flux maritimes PORT TAMATAVE368 821 849,95
Frais d’Administration minière BCMM604 936 322,00
Cotisation CNAPSCNAPS398 987 999,00
FMFPFMFP27 978 185,00
Cotisation aux organisations sanitaires d’entrepriseOSTIE83 829 874,00
GOLD SANDFrais d’Administration minière BCMM1 236 628 800,00
Cotisation CNAPSCNAPS 420 000,00
FMFPFMFP30 000,00
MOSARedevances de fréquence ARTEC4 725 000,00
Frais de formation payé à l’OMNIS OMNIS988 222 650,00
Cotisation CNAPSCNAPS 205 965 483,50
FMFPFMFP14 711 820,31
Cotisation aux organisations sanitaires d’entrepriseFUNHECE190 490 564,04
PAM SAKOARedevances télécommunication Non communiqué3 605 692,32
Frais d’Administration minière BCMM722 534 402,00
Cotisation CNAPSCNAPS 1 681 753,66
FMFPFMFP129 365,67
Cotisation aux organisations sanitaires d’entrepriseNon communiqué646 828,33
QMMRedevances de fréquence ARTEC82 143 750,00
Droit de port sur les marchandises importées  BOLLORE TRANSPORT LOGISTICS4 927 248 436,31
Frais d’Administration minière BCMM846 720 000,00
Certificat de conformité (Mise en compatibilité – ONE) ONE258 146 740,00
Droit parking aéroport de MadagascarADEMA240 000,00
Cotisation CNAPSCNAPS 1 188 522 905,86
FMFPFMFP82 697 692,98
Cotisation aux organisations sanitaires d’entrepriseESIA25 003 036,79
TIRUPATICotisation aux organisations sanitaires d’entrepriseFUNHECE
OSTIE
70 289 632,15
Frais d’Administration minière BCMM31 042 560,00
Cotisation CNAPSCNAPS 222 061 978,10
TOTAL38 431 579 353,66
Source : Loi n°2014-020, Décret n°2006-910, Décret n°2020-1000, Décret 2024-1464

7. Revenue Allocation

7.1. Mining Administration Fees

Mining Administration Fees (FAM) are annual fees per mining license block paid by the license holder to cover the costs of services and the management of rights attached to the mining permit. They must be settled before the end of the first quarter of the relevant calendar year with the BCMM, which subsequently prepares a distribution statement for the General Revenue of Antananarivo (RGA) of the Public Treasury. The Treasury then disburses the funds to the respective beneficiaries.

The table below illustrates the allocation of Mining Administration Fees (FAM) :

7.2. Mining Royalties

Mining royalties are calculated based on the value of mining products at their first sale, which is made directly to the Commune or to the Treasury. The allocation is presented in the table below.

Suivant la Loi n°2014-020Suivant le Décret n°2020-1000Suivant Décret 2024-1464
BénéficiaireQuote-partBénéficiaireQuote-partBénéficiaireQuote-part
Fonds National de Péréquation (FNP)10%  Fonds National de Péréquation (FNP)10%
CTD90%CTD100%CTD90%
Commune60%Commune60%Commune60%
Région30%Région39%Région30%
Province10%Province1%Province10%
Total100%Total100%Total100%
Source : Loi n°2014-020, Décret n°2006-910, Décret n°2020-1000, Décret 2024-1464

Mining royalties paid by QMM

8. Social and Environmental Expenditures

These are voluntary social contributions, either in kind or in cash, provided by extractive companies to the Decentralized Territorial Collectivities (CTD) or other beneficiaries. The table below shows the donations granted by each extractive company :

The details of voluntary social payments are provided in the annexes 15, 16, 17 et 18 of the 22 EITI Report.

9. Local Content Data

9.1. Contribution to Employment

9.2. Employee Distribution by Gender

The total number of people employed by the twelve (12) extractive companies within the scope is 5 124 employees,of which 93% are nationals and 7% are expatriates. Below is the summary table of the employees concerned :

9.3. Artisanal and Small-Scale Mining (EMAPE)

Professionalization of artisanal miners

The professionalization of artisanal mining is part of the Government’s programs under the General Policy of the State regarding the development of the mining sector. Artisanal operators are national individuals working in remote and isolated quarries. They often face significant gaps in mining operations, both in terms of financial and technical capacities. Largely unconcerned with economic and environmental impacts and more focused on daily survival, artisanal miners represent a substantial loss of potential revenue for the Nation and pose serious environmental risks, as their mining activities, especially in rush areas, proliferate and frequently fall outside the legal framework. Following the verbal communication approved by the Council of Ministers on 4 May 2022, which endorsed the implementation of supervised areas for small-scale miners and gold panners, the Ministry of Mines authorized regulations to improve the artisanal mining sector through the formalization of miners within Supervised Zones “ZE”. This approach encourages the acquisition of Mining Permits by groups of national individuals and strengthens monitoring and control through the establishment of Mining Specifications, similar to medium and large-scale Mining Permits, to professionalize artisanal miners in the exploitation of mineral resources. As of December 2024, 336 Supervised Zones have been established, encompassing 9,603 artisanal miners under guidance in resource exploitation.

Le tableau ci-dessous est le nombre de ZE en 2022 :

Gradual resumption of Mining Permit processing

The processing of pending mining permit applications at the BCMM concerns the evaluation of 209 mining permits reserved for artisanal miners, in accordance with compliance requirements under the current Mining Code and its implementing Decree. Their locations are presented in the table below.