Mining Law in Madagascar

Thanks to the combination of the significant mineral potential of Madagascar and the favorable geographical context the country enjoys (as a crossroads between Asia and Africa), the mining sector is one of the most promising levers of development for the country. However, realizing this potential requires the implementation of mining regulations reflecting an adequate balance between attractiveness to investors and significant economic and social benefits for Madagascar.

In an effort to achieve this delicate balance, mining law has been reformed with Law No. 99-022 of 30 July 1999 relating to the Mining Code, which was subsequently amended in 2005 with Law No. 2005 – 021 of 27 July 2005. The Mining Code has been drafted taking into account two needs, the first being the need for a simplification of the regulations (including, in particular, the regulations applicable to granting of mining permits and to renewal procedures), and the second being the need for a modernization of these regulations, in order to harmonize the Malagasy mining provisions with the provisions commonly applicable in mining countries such as Latin American, African or Asian countries.

Specific rules for large investments in the mining sector have also been established with Law No. 2001-031 of 8 October 2002 establishing a special regime for large investments in the Malagasy mining sector. This text, whose main objective was to promote and foster the establishment of very large mining projects in Madagascar, through the implementation of a more attractive legal, tax, customs and exchange rates regime, has been amended by a law in 2005 (one of the key elements of which was the lowering of the threshold for qualification of the projects, which was deemed too high and which has been lowered from two hundred billions of Ariary to fifty billions of Ariary).

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Law No. 99-022 of 30 July 1999 relating to the Mining Code, as amended by Law No. 2005 – 021 of 27 July 2005 (French version)