Ambatovy has been involved in the Tsaratantana (Good Governance) Project over the last number of years to develop a credible mechanism for royalty distribution at the community level. The project is overseen by a steering committee with representatives from various Malagasy government ministries, as well as from the Chamber of Mines and the Extractive Industries Transparency Initiative in Madagascar. The project’s aim was 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 now to ensure these funds are managed effectively, transparently and sustainably to help these communities achieve their aspirations.
Following the adoption by the Malagasy government of the two enabling acts and an inauguration event in Toamasina in July, Ambatovy was able to make its royalties payment, as required by the mining code. A payment of approximately $18,000,000 USD was made on August 31 to the General Treasury of Toamasina for royalties accrued from Q4 2012 to Q2 2018, to be allocated to two Regions and 20 Communes.
Ambatovy is part of a support group on local governance that also comprises government departments, local authorities, civil society organizations and donors. The objective of the group is to provide guidance, advice and support to the beneficiaries, and to help mobilize resources and expertise in order to strengthen their capacities towards the good governance of their mining royalties. In addition, a local NGO called Saha is working on capacity-building directly with the Communes. Saha has much experience and is well regarded for its work in the areas of decentralization, local development and good governance.