 
          
            Summary
          
        
        
          As reflected in this summary, the EA considers each of the five project
        
        
          sites in turn.  This approach allows for a focused assessment that
        
        
          considers each spatially separated site in detail.  However, the
        
        
          Ambatovy Project is a single project, composed of all project sites.
        
        
          Combined effects of the project as a whole are assessed after each site
        
        
          is considered in turn.  Further details on the structure of the EA report
        
        
          are provided at the end of this summary.
        
        
          
            Project Policies
          
        
        
          Project-specific policies on environment, health and safety, re-settlement
        
        
          and biodiversity have been developed for the Ambatovy Project.  It is the
        
        
          policy of the project to maximize Malagasy employment to the extent
        
        
          feasible given skill requirements.  It is also project policy that training
        
        
          programs be put in place to enhance the skill level of local residents,
        
        
          enabling increased employment over time.  The human resources policy
        
        
          also promotes project programs to enable local companies to participate
        
        
          in the project, with a focus on Small and Medium Enterprises (SMEs).
        
        
          The Project has also endorsed the Equator Principles developed by
        
        
          financial institutions to assess and manage environmental and social risk
        
        
          in project financing (see Attachment 3).
        
        
          
            MINE SITE
          
        
        
          
            Social Context
          
        
        
          The mine site is about 14 km northeast of the regional centre of
        
        
          Moramanga, and near the communes of Morarano Gare, Ambohibary
        
        
          (also called the Suburban Moramanga Commune), Ampasipotsy and
        
        
          Andasibe.  The sub-villages of Berano, Behontsa, Andranovery and
        
        
          Ampangadiantandraka are closest to the mine site.  The total population
        
        
          in the mine social study area approached 80,000 people in 2003, with
        
        
          less than half of these in the town of Moramanga.
        
        
          Moramanga
        
        
          The economy has both rural and urban aspects.  Rural livelihoods are
        
        
          based largely on subsistence agriculture, predominantly rice and manioc,
        
        
          and to a lesser extent livestock.  People depend on the nearby markets
        
        
          of Moramanga to sell agricultural and artisanal products.  They also
        
        
          exploit forest resources for additional subsistence and work in the wage
        
        
          economy.  The town’s economy was based primarily on forestry,
        
        
          including production of lumber but also manufacturing of wood products.
        
        
          This industry is in decline.
        
        
          January 2006
        
        
          Ambatovy Project — 5