SOCIAL

Compensation

Ambatovy fully understands the need to recognize and respect the communities where it works. Prior to any groundwork, it is necessary to consider all local stakeholders who will be directly influenced by Ambatovy activities. Careful, long-term measures are taken to make sure that communities and individuals receive proper compensation for lost income or affected property.

Resettlement

Construction of the Tailings facility and the Plant Site required the resettlement of two communities. Approximately 300 new houses were built for the 1,200 people who had to be relocated.

Marovato Resettlement Village

Ambatovy followed national and international resettlement and compensation protocols as set out by:

Ambatovy’s resettlement compensation program is based on four key principles:

  • Equity: the same calculations and principles were applied for all relocated families, ensuring transparency and fairness;

  • Fair evaluation of property values: the value of property eligible for compensation was based on socio-economic studies conducted among the affected populations;

  • Participation and transparency: a committee representing the interests and perspectives of the affected communities approved the compensation methodology and made sure that all stakeholders were involved in the process;

  • Current prices: compensation for any loss of income due to reduced harvests or yields was based on current market prices for agricultural products.

Through its Corporate Social Responsibility Department (CSR), Ambatovy has striven to ensure that development activities are sustainable and that the two relocated villages emerge from this transition strong, vibrant, and dynamic.

Compensation

Rice Fields and Agricultural Land

Where Ambatovy activities encroach on agricultural practices, changes in crop and rice production were assessed and any losses were compensated accordingly and in consultation with the farmers concerned.

Pipeline

The Pipeline passes through varied terrain, sections of which consist of agricultural land and rice fields. Ambatovy’s compensation program offsets any individuals or communities who have suffered any form of damage to their land, crops, houses, or sacred sites caused by construction of the Pipeline.

Ambatovy’s compensation measures are based on:

  • Field investigations by a third party;

  • Compensation for crops lost;

  • Replacement/rehabilitation costs using local labor and in consultation with the landowner.

By 2012, 1,330 owners/farmers had been affected by the Pipeline with 1,943 plots covering around 650 ha of rice fields. By the end of 2015, 100% of the restoration work on the ricefields able to be restored was completed. For those ricefields unable to be restored, Ambatovy continues to work with the owners/farmers to identify satisfactory settlements, either through providing alternative income generating activities or compensation.

Mine Footprint

Surveys undertaken in 2004-2005 by Ambatovy found 29 households working approximately 60 ha of agricultural land within the footprint of the Mine. Ambatovy acquired 99 ha of farm land in Ambolomaro, west of the Mine, as compensation or replacement for their land loss. This allows the affected farmers to continue their agricultural activities on a parcel of land equal to or greater than the plot they previously owned.

Throughout this transition period, Ambatovy has provided farmers with rice during the harvest seasons. The first distribution of rice was in January 2009.