Madagascar Government Makes Ownership Part of Approval Process

16 February 2010 (Last Updated February 16th, 2010 18:30)

Madagascar’s government said it will make efforts to ensure it has shares in all large mining projects that are approved there in future to ensure it gets a cut of revenues from its resources such as iron, uranium, bauxite and gold. Madagascan Mines and Oil Minister Mamy Ratovomalala sa

Madagascar’s government said it will make efforts to ensure it has shares in all large mining projects that are approved there in future to ensure it gets a cut of revenues from its resources such as iron, uranium, bauxite and gold.

Madagascan Mines and Oil Minister Mamy Ratovomalala said while current laws will not be changed, part government ownership in the project will be made conditional to receiving approval.

Speaking with Bloomberg, he said that small-scale operators will be allowed to continue working independently.

Madagascar is about to start issuing mining permits in March after halting approvals following political upheaval last year.

Madagascar is one of the world’s largest global producers of sapphires and companies such as Rio Tinto and Canada’s Sherritt International have large mining operations there.