Ambatovy eBooks - page 4

Summary
INTRODUCTION
In 1960, the Malagasy Geologic Service first mapped
the Ambatovy and Analamay nickel / cobalt ore bodies
north of Moramanga in central Madagascar. Since then
several companies have conducted exploration drilling
to evaluate the mineral deposits, including most recently
Dynatec Corporation of Canada (Dynatec). Now a joint
venture including Dynatec is proposing the development
of both ore bodies through the Ambatovy Project (the
project). For the purpose of the Environmental
Assessment (EA), the project is divided into five sites:
mine site;
slurry pipeline;
process plant;
tailings facility; and
port expansion.
The open pit mine will produce nickel and cobalt ore
over at least 27 years. A slurry of ore and water will
be sent by pipeline from the mine to a process plant
near Toamasina on the east coast. A tailings facility
will be constructed southwest of Toamasina, to receive
tailings solids from the process plant. In Toamasina,
the existing port will be expanded to allow for import of
raw materials such as limestone, coal and sulphur,
and export of a mixed metal sulphide. The exported
product will be refined to pure nickel and cobalt at an
off-shore refinery. The schedule for the project is
subject to Environmental Assessment (EA) review,
permitting and detailed engineering design, but proposes construction
from 2007 to 2009, with production beginning in 2010.
Location of the Ambatovy Project in Madagascar
Over the 30 year lifetime of the project, average direct employment of
Malagasy labour is estimated at between 1,400 and 2,000 jobs annually.
Money spent in Madagascar is estimated to be over US$100 million
annually. In addition, an estimated annual average of US$25 million will
be paid to the Malagasy government (duties, tax and royalties). Many
additional indirect and induced economic benefits will also be realized
and will be described later in this summary.
In developing the Ambatovy Project, including preparing the EA, the
proponents have strived at all times to maintain high social and
environmental standards. The EA explains proposed mitigations that will
be implemented to ensure that beneficial project effects are optimized
and negative impacts minimized. The proponents are committed to
January 2006
Ambatovy Project — 1
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