In Madagascar, mining professionals are standing up against the government. The Chamber of Mines accuses the authorities of not having consulted it for the drafting of a new law.
What hurts mining stakeholders in the new bill is the 2-4% increase in royalties that companies will now have to pay to the Malagasy state.
The Chamber of Mines is also concerned about the possible consequences of this law. « The measures envisaged clearly run counter to the attractiveness of Madagascar as a destination for responsible and sustainable national and international mining investments, » the institution fears.
Another thing that goes badly by the throat is the fact that the Madagascan state demands to participate at least 20% in the capital of each mining project.
The authorities of the Big Island are also criticized for having drafted this law unilaterally.
Full of raw materials like cobalt and nickel, Madagascar like many African countries and despite some improvements is still faced with the challenge of transparency in the extractive industries. This is evidenced by the suspension in 2017 of the Extractive Industries Transparency Initiative (EITI) for failure to publish the 2017 report.
However, recognizes the EITI, this year considerable efforts are being made.