Madagascar lifts 16-year ban on new mining permits for most minerals

By James Kunda

LUSAKA, Zambia (AA) - Madagascar lifted a 16-year moratorium on Friday on new mining permits for a bulk of minerals, except gold, which will remain suspended due to regulatory challenges.

"We have decided to lift the suspension on issuing mining permits, which is an essential working tool that allows operators and investors to operate legally,” the Mines Minister Carl Andriamparany told reporters in Antananarivo.

He said the government decided to maintain the moratorium on gold permits, citing substantial discrepancies between production and the scale of artisanal mining.

"The volume of gold declared in the past year amounts to just over 13 kilograms (29 pounds); the figure is negligible compared with the intensity of mining activity nationwide. The government acknowledges the current inability to effectively regulate the sector and establish a rigorous monitoring system," he added.

The 2010 suspension was imposed to allow the Indian Ocean-island nation to review the mining governance and legal framework to enhance earnings and establish a rigorous monitoring system.

Mining is Madagascar's economic cornerstone, with key exports including nickel, cobalt, graphite and ilmenite.