SUSTAINABILITY

Economic Contributions

Ambatovy is the largest capital project in Madagascar’s history. Designed to operate for a minimum of 29 years, Ambatovy will have a major, positive, long-term impact on the Malagasy economy.

Over its lifecycle, and based on current nickel prices, Ambatovy estimates its contributions to the Government of Madagascar at US$ 50 million per year for the next ten years and US$ 4.5 billion over the 29 year life of the Mine[1] in taxes, royalties, duties, and other payments. The exact amount payable to the government is difficult to forecast due to multiple variables that include the fluctuating market price of nickel and cobalt, the cost of input commodities (such as coal, limestone, and sulphur), inflation, and other factors that are also subject to fluctuation.

Once Ambatovy reaches its full capacity, nickel will become Madagascar’s top export, supplanting the more traditional leaders like shrimp and spices, and will bring in around US$ 700 million to US$1.8 billion per year, which will contribute to stabilizing the local currency. Ambatovy’s exports will place Madagascar among the top 10 nickel producing countries in the world, and will account for 3% of the global supply of nickel and 12% of the global supply of cobalt. Already, in 2013, nickel and cobalt exports were accountable for 85% of the recorded increase in Madagascar’s exports.[2] Investments in job creation, infrastructure, and support for local business will also contribute significantly to Madagascar’s potential for future growth.

Many extractive industries in sub-Saharan Africa have chosen to refine their minerals in Asia, Europe, or North America. Ambatovy’s decision to fully refine its products in Madagascar generates significant local benefits including thousands of additional jobs, enhanced technology transfer and expanded capacity building, and infrastructure. These will all generate substantial economic returns for Madagascar over the long run.