The downturn in commodity prices has hit the mining industry globally but in Madagascar, it coincided with the end of a five-year period of turmoil, precipitated by a coup in 2009. Any hopes for the sector to propel itself back on the development track were dashed.
“Lots of mining companies came to Madagascar to explore [before 2009] but then we had the political crisis, with all the uncertainty and lack of visibility it brought, and even though we had elections in 2013, that uncertainty has not really lifted,” said Willy Ranjatoelina, executive secretary of the Madagascar Chamber of Mines.
In the mid-2000s, Madagascar had given the green light to two large-scale mining projects: Ambatovy, a $8bn (£6.4bn) nickel and cobalt project developed by a consortium led by Sherritt International, and QMM, a $1bn ilmenite project developed by Rio Tinto. Since then new projects have dried up. Continue Reading →