• Madagascar lifts 2010 suspension on mining permit issuance

• Move follows 2023 mining code, aims to boost investor clarity

• 1,650 permit applications pending; mining under 5% of GDP

Madagascar’s Council of Ministers on Jan. 27 authorized the resumption of mining permit issuance. This decision ends a suspension on the granting of mining titles that has been in place since November 2010.

The suspension was announced 16 years ago by the Ministry of Mines during a period of political transition in Madagascar. The ministry cited speculation in mining titles as a primary cause for the freeze. According to the 2023 EITI report published in late December, 1,650 applications for mining permits had been filed with the mining administration and were awaiting a response.

Madagascar authorities have not specified a timeline for processing the pending applications. However, the resumption provides greater clarity for mining investors. This relaunch follows the adoption of a new mining code in 2023. The code is intended to regain control of a sector marked by weaknesses in the mining cadastre, where permits could remain inactive for long periods, slowing exploration activity.

The other objective of the reform was to make the country’s mining sector more attractive to investors and further increase the value of Madagascar’s resources. While Madagascar hosts cobalt, nickel, graphite, and rare earths, its mining sector represents less than 5% of GDP, according to official data. Among the companies waiting for a mining permit is Harena Rare Earths, which seeks to develop a rare earths mine.

Emiliano Tossou