Madagascar: The private sector supports mining code reforms.

The stakeholder consultation day to finalize the implementation decree of the mining code saw the participation of the mining operators community and public authorities.

The private sector is rallying behind the extractive sector reform process. The operators define themselves as partners in the mining development of the island. At least that’s what representatives of the operators, especially through the Chamber of Mines, indicate. They gathered as stakeholders during yesterday’s consultation at the Mining Business Center.

Discussions focused on finalizing the implementation decree of the recent mining code. Words are joined by actions: “We are willing to register as partners in the effort to make the mining sector a lever of economic development and a contributor to large-scale industrialization of the country,” said Jean-Luc Marquetoux, president of the Chamber of Mines.

For operators in the private sector, it is also necessary to reassure the country’s mining community that the island is slowly regaining its investment image. The public consultation process is part of these steps, incorporated in the reforms initiated in the mining code. The legal text was designed following consultations with stakeholders to draw up a series of viable provisions for each party, the state, the private sector, and local communities. Although these three stakeholders have already participated in the development of the mining code, there are still points to be settled to take advantage of the mining code and extractive sector.

Among the points still to be debated is the issuance of mining permits. But other provisions must also be included in the discussions. Yesterday, discussions and workshops focused on the resumption of the gold sector, societal and environmental issues, as well as finances and exports. For example, there is questioning about the mode of collection and the rate of distribution of rights and taxes on mining products. The rate of royalties and royalties increases from 2 to 5%. How will the distribution of these rights be made to the beneficiaries?

According to Olivier Herindrainy Rakotomalala, Minister of Mines, the implementation of the mining code generates significant benefits for the state treasury in the first place.

Itamara Randriamamonjy