Ambatovy has been involved in the Tsaratanana (Good Governance) Project over the last number of years to develop a credible mechanism for royalty distribution at the community level, as required by the Malagasy law for large mining investments. The project is overseen by a steering committee with representatives from various Malagasy government ministries (including the Presidency and the Prime Minister’s Office), as well as the Chamber of Mines and the Extractive Industries Transparency Initiative in Madagascar. The project’s aim is to provide recommendations to the national government on how best to distribute the royalties it receives from our business to the local jurisdictions that are impacted by our presence, and to ensure these funds are managed effectively, transparently and sustainably to help these communities achieve their aspirations.
A consulting firm was retained to help with this work. The firm had consultations with key government representatives, donors and civil society groups, among others, and held consultations and workshops in the field with local authorities, traditional leaders and community members. The firm’s work led to the proposal of a mechanism for the management of the royalties.
In December 2017, an arrêté interministériel (interdepartmental order) for the royalties’ distribution was signed by the Malagasy government. Ambatovy is waiting for the specific order that will apply to Ambatovy to be issued by the Ministry of Mines, expected in the very near future. We will continue to keep other key groups informed, such as the World Bank, UNDP, GIZ and EU, and will look for opportunities to develop a governance initiative to strengthen capacities at commune levels. This effort is another demonstration of the role that Ambatovy plays in helping catalyze discussions on transparency, and the equitable distribution and use of funds generated by our business.