MarketMining industry of Madagascar
Company Profile

Mining industry of Madagascar

The mining industry of Madagascar is mostly on a small scale, centred mainly around remote locations with large mineral deposits. Mining potential is noted in industrial and metallic minerals, energy, precious and semi-precious stones, as well as ornamental stone. The mining sector was neglected by the government for decades prior to the mid-2000s. In 2013, the mining industry, a main source of foreign investment, was struggling due to "low metals prices and distrustful companies", attributed to a 2009 coup.

History
Mining was a part of Madagascar's cultural lore dating back to the 15th century before it became a reality at the beginning of the 19th century. Speculations of valuable metal and mineral deposits in Madagascar came with the arrival of the Imerina people, also known as the Antimerina, Merina, or Hova people, in the 15th century when they established their small kingdom in central Madagascar. These speculations of valuable metal and mineral deposits are rooted in a traditional Malagasy story titled ''Tantaran'ny Andriana (which translates as The History of the Nobles). Tantaran'ny Andriana is a story told in the oral tradition that shares the history of the kings of Imerina. for "volamena''" (gold). These alluvial deposits were a secret guarded by the Sakalava and then Merina monarchs – with hopes to avoid international exploitation – until the 1820s when word got out about the deposits. ==Production and impact==
Production and impact
Today, Madagascar's mining industry is separated into two main types of mining: Artisanal and Small-Scale Mining (ASM) and large-scale public-private mining. Artisanal and small-scale operations are typically not associated with companies – it is more of an individual operation and large-scale mining involves large, often international companies. ASM operations tend to focus on mining for precious metals and precious and semi-precious stones than large-scale public-private mining. For example, most artisanal and small-scale miners tend to mine for precious metals and stones like gold and sapphires, For context, the gold output in 1904 was 2,641 kg (84,910 ozs.), valued at £316,995. In the following year, 1905, the quantity produced was 2,370 kg (76,197 ozs.), valued at £286,804. 113 years later, in 2018, according to data from the United States Geological Survey (USGS) the quantity of gold produced in Madagascar in 2018 reached the highest reported record of gold produced on Malagasy land – 3,000.00 kg (105, 821 ozs). The most recent data from the USGS states that the quantity of gold produced in 2020 was 2,100.00 kg (74,075.32 ozs). The extraction rate recorded in this sector was 121% during 2010, which has been sustained by an increase in substantial extraction of agate, quartz, zircon, ilmenite, rutile, labradorite, limestone and marble, cement, graphite, gemstones, nickel and cobalt. According to the Plan d'action Madagascar 2007-2012, from both large and small-scale mining operations, mining makes up 4% of Madagascar's GDP. More recently, as of 2018, the mining industry accounts for 4.6% of the GDP, 4.4% of the government revenue, and 28% of exports annually. The EITI believes this because of the significant portion of illegal exports of gold. Looking into the future, the Plan d'action Madagascar 2007-2012 predicts that the mining proportion of the GDP will increase to 30% as Madagascar shifts from a mainly artisanal and small-scale based mining industry to a large-scale public-private industry. == Impact of Madagascar's mining industry ==
Impact of Madagascar's mining industry
Although Madagascar's economy is supported by the mining industry, in terms of ASM, as well as in terms of large-scale public-private mining initiatives, these mining efforts heavily impact Madagascar's natural environment and therefore, the Malagasy people and culture. These impacts can be recognized as environmental injustices. Environmental injustices of Madagascar's mining industry In general, mining is a naturally destructive process and the mining industry in Madagascar is not excluded from this generalization. The sheer definition of mining – "the industry and activities connected with getting valuable or useful minerals from the ground" – inherently results in the destruction of a physical environment to obtain these minerals from the earth. When conducting explorations or excavations of an area for the purposes of mining, entire ecosystems are destroyed which in turn results in a loss of overall biodiversity. In Madagascar, the two types of mining used affect the natural environment in different ways. In terms of ASM operations, there are fewer miners that work individually or in small groups in remote areas to find precious metals and stones. These mining initiatives take place away from permanent settlements like villages. The land that artisanal and small-scale miners often explore are areas known as "tany malalaky" meaning land that is "open and available" – highlighting the Malagasy belief that no one person or group "owns" the land. Many of these social and cultural factors are rooted in the loss of individual livelihood and communities by way of physical displacement of (typically rural) populations or restricted access to protected natural zones. Additionally, for those working on-site, they often suffer from poor working conditions and mistreatment due to unjust policies, as well as from the pollutants inherently associated with the industry and their potential health impacts. == Legal framework ==
Legal framework
The Mining Law of 20 February 1902, was amended in November 1905; amongst other provisions the charge for a prospecting permit was reduced from £4 to £1. The present-day laws of the land related to the mining sector are: Act No. 2005-022 of 17 October 2005 which is an amendment to Law No. 2001-031 of 8 October 2002 prescribing specific rules for large investments; Act No. 2005-021 of 17 October 2005 which is an amendment to Law No. 99-022 of 19 August 1999; and Mining Code; and Decree No. 2006-910 of 19 August 2006 on execution of mining Code. ==Commodities==
Commodities
Minerals, both industrial and metallic, are numerous including ilmenite, graphite, limestone, gypsum, dolomite, silica, mica, titanium, quartz, gold, platinum group, silver, iron, copper, zinc, nickel, cobalt, chromite, coal, and uranium. Madagascar is also rich in precious and semi-precious stones: ruby, sapphire, emerald, aquamarine, beryl, tourmaline, topaz, garnet, cordierite, rose quartz, amethyst, and citrine. Decorative stones found are marble, silicified wood, and jasper. ==Mines==
Mines
Ambatovy mine (nickel and cobalt) • Ankaizina mine (bauxite) • Ankililoaka mine, Atsimo-Andrefana (titanium) • Bekisopa mine (iron) • Basibasy mine, in Atsimo-Andrefana (titanium) • Betioky mine (iron) • Farafangana mine (bauxite) • Fenoarivo mine (iron) • Green Giant mine (vanadium) • Manantenina mine (bauxite) • Mandena mine (ilmenite) • Molo mine, Atsimo-Andrefana, (graphite) • Ranobe mine (titanium) • Soalala mine (iron) • Sahamamy graphite mine (graphite, in Fetraomby) • Marovinsty mine, near Vatomandry (graphite, Ets.Gallois S.A.) • Artsirakambo mine, near Brickaville (graphite, Ets.Gallois S.A.) • Ambalafotaka mine, (graphite, Ets.Gallois S.A.) • Kraoma chromium mine (Kraomita Malagasy S.A - Brieville) • Holcim (cement, plant in Ibity) • Madagascar Long Cimenterie (Maloci) (cement, plant in Ambohimanambola, Betafo) ==See also==
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