ECONOMIC CONTRIBUTIONS

Government Revenues

Revenue contributed by Ambatovy to the Government of Madagascar comes from taxes, royalties, and duties, some of which are fixed and some of which are variable. This guarantees revenue for Madagascar even if Ambatovy were to make minimal profits. When profits increase, the government’s revenue stream will increase.

Ambatovy estimates it will pay around US$50 million to the Government per year for the first 10 years, and more than US$4.5 billion over the 29 years of operations in Madagascar[1].

It is not possible to forecast the exact amount of government revenue because it depends on multiple variables including the fluctuating market price of nickel and cobalt, the cost of input commodities (such as coal, limestone, and sulphur), inflation, and other factors.

Ambatovy supports Madagascar’s efforts to become a compliant country in the Extractive Industries Transparency Initiative (EITI). EITI encourages companies, governments, and civil society groups to work toward the transparent disclosure of payments made by extractive industries to governments. EITI compliance also requires that governments disclose receipt of all such payments.