Consulting services for revenue management from mining operations in Madagascar

Date : 2015-2016
Client: Ambatovy
Funding: Social Investment Fund (joint management of the Malagasy State and Ambatovy)

Project overview

The mining company Ambatovy, the biggest producer of nickel in Africa, has appointed Egis to create a framework enabling local authorities to manage sustainably, efficiently and transparently all revenue that is generated by mining operations.

Malagasy law imposes a tax on mining companies for the sale of mining products, to the benefit of the local authorities impacted. In the case of Ambatovy, several million dollars per year are paid to the authorities. This is a significant amount that can be very destabilising in the local context.

Our missions

With the support of Egis, an agreement between stakeholders has been obtained for the establishment of inter community institutions for the development of a sustainable economic region and the creation of a foundation. This foundation will be given a portion of the tax funds, which will be jointly managed by the local authorities, the administration, the civil society, and the mining company. Its function will be to capitalise funds in order to ensure project financing for future generations.