MADAGASCAR Law and Practice Contributed by: Mialy Solofohery and Tiavina Rakotonaivo, John W Ffooks & Co
2.4 Prior and Informed Consultation on Mining Projects In Madagascar, prior and informed consultation is mandatory for mining projects, particularly when they involve local communities. This process is typically led by the investor but must comply with legal frame - works that ensure the consultation is transparent and inclusive. The objective is to ensure that communi - ties affected by the mining project are informed about potential impacts, and that their consent is sought. The consultation involves the participation of local populations, affected parties and, where applicable, governmental bodies. The investor is responsible for initiating the consultation process, which should include environmental and social assessments as well as compensation plans. Certain categories of communities benefit from protection regarding mining projects. For example, Law No 66-025, dated 19 December 1966, ensur - ing the cultivation of agricultural land, protects farm - ers against immediate relocation regardless of their licence of occupation. 2.6 Community Development Agreement for Mining Projects 2.5 Impact of Specially Protected Communities on Mining Projects In Madagascar, community development agreements are typically mandatory for mining projects, as out - lined by the Mining Code. These agreements are part of the broader corporate social responsibility (CSR) framework for mining companies and are tied to spe - cific legal obligations. Key provisions of the Mining Code include: • local content requirements ensuring that min - ing companies contribute to the local economy through job creation, training and the use of local goods and services; and • contribution to the Mining Social and Community Investment Fund (FMISC), which is intended to support local community development and envi - ronmental management projects.
2.7 ESG Guidelines and Regulations The main ESG guidelines/regulations applicable in Madagascar are: • Decree No 2025-080 dated 28 January 2025 establishing the rules and procedures for Environ - mental and Social Assessment for the Compatibil - ity of Investments with the Environment or MECIE; and • Interministerial Order No 12032/2000, relating to environmental protection regulations in the mining sector. The mining regulations also establish the ESG guide - lines, requiring specification of the CSR plans of min - Illegal mining activities are regulated and sanctioned by the mining laws of Madagascar. Therefore, illegal mining is an issue in Madagascar; it constitutes a breach of the laws and undermines the insecurity of the Malagasy mining industry. The Malagasy government has taken various steps to combat illegal mining. According to the Mining Code, Madagascar aims to formalise artisanal mining by providing legal frameworks for small-scale mining operations. This would allow informal miners to be integrated into the formal economy under regulated conditions, including in relation to licensing and over - sight. Enforcement measures include restrictions on illegal mining camps, seizures of equipment and penalties for those involved in illicit activities. The BCMM plays a key role in regulating and overseeing mining activi - ties. Mining companies often co-operate with government agencies to address illegal mining. This can include sharing intelligence, helping to monitor mining activi - ties and supporting initiatives to promote responsible artisanal mining practices. ing licence holders. 2.8 Illegal Mining
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