MADAGASCAR Law and Practice Contributed by: Mialy Solofohery and Tiavina Rakotonaivo, John W Ffooks & Co
2.9 Good and Bad Examples of Community Relations/Consultation Impacting Mining Projects The following list provides good examples of environ - mental and community relations/consultation around mining projects in Madagascar: • establishment of a written agreement entered into between the mining licence holders and landown - ers/occupants regarding their respective rights and obligations; • obtainment of explicit authorisation from the land - owner by the mining licence holder, against ade - quate compensation with respect to wood-cutting works within the mining perimeter; and • settling disputes through non-litigious procedures prior to any referral to the relevant courts. Bad examples of environmental and community rela - tions/consultation around mining projects include the following: • the mining licence holder fails to inform the land - owner of the rights of the licence holder to occupy the plots covered by its mining licence; • the mining licence holder proceeds with relocation prior to completing the payment of compensation to landowners/occupants subject to forced reloca - tion; and • the mining licence holder fails to repair damage to private or public areas, as well as to the environ - ment, caused by its activities. 3. Climate Change, Energy Transition and Sustainable Development in Mining 3.1 Climate Change Effects The Malagasy legislation approaches climate change from the standpoint of environmental protection. Ini - tiatives affecting the mining industry in Madagascar, which must comply with environmental protection measures, include the following: • mining licence holders are required to comply with environmental protection regulations;
• mining licence delivery is subject to the obtainment of an environmental licence/authorisation; • eventually, new research requiring an exploration licence will also require an Environmental Impact Evaluation (EIE); and • the approval of the Programme d’Engagement Environnemental (PEE) will be required for the granting of research and mining licences. 3.2 Climate Change Legislation and Proposals Related to Mining The authors are not aware of any specific key provi - sions focusing solely on climate change in Madagas - car. 3.3 Sustainable Development Initiatives Related to Mining Law No 2015-003, dated 20 January 2015 and updat - ing the Malagasy Environment Charter, mainly estab - lishes sustainable development initiatives. Sustain - able development initiatives focus on: • socio-economic development; • sustainable management of the environment; and There are currently no Malagasy government or leg - islative initiatives regarding the increasing demand for the so-called energy-transition minerals, such as lithium, cobalt, rare earths and copper. 4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes The tax system for the mining industry in Madagascar includes three main tax obligations: • income tax; • VAT (mandatory or voluntary); and • specific taxes on mining activities – 5% of the value of the exporting mines (2% mining rebate and 3% mining royalties). • good environmental governance. 3.4 Energy-Transition Minerals
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