Madagascar: the Minister of Mines Presents His Project to Reform the Mining Code

maryam lahbal
maryam lahbal
2 Min Read

Since the beginning of the week, the Committee on Mines and Strategic Resources has been linking the work of studying the text in preparation for the bill’s submission to the vote of the National Assembly on Friday, May 12th.

Mohamad Ahmad, the Chairman of the Mines and Strategic Resources Committee, has expressed his satisfaction with the progress achieved in the last three days. He has announced that several amendments are currently in the pipeline, with the first one concerning the distribution of taxes. Previously, mining companies paid royalties and rebates that were now renamed as “special duties and taxes on mining products.” However, the distribution of these taxes to the State and decentralized local authorities was only 2%, which many observers deemed unfavorable to decentralization.

For his part, the Minister of Mines, Olivier Rakotomalala, said he is confident about Friday’s vote. ” Obviously! We have already worked extensively with consultation at the regional and national levels. Given the steps already (completed) for decades, I am confident, it will pass on Friday,” he assures.

The Chamber of Mines, which represents the interests of the mining industries, admits that increasing the contributions intended for the State was important. “We are not fighting reform,” said its president, Jean-Luc Marquetoux. “We are aware that revising this old text from 2005 to bring it into line with the international standards that have evolved was necessary. However, this superposition of new levies is worrying.”

The Chamber of Mines, therefore continues to campaign for a cumulative rate of rebates and royalties at 4% instead of the 5% announced in the new code. “Going from 2 to 5%, or 150% increase, is excessive. We had already made a big effort by agreeing to double our contributions,” notes Jean-Luc Marquetoux.

Maryam Lahbal

Share this Article
Leave a comment