Complying with Regulations
and Standards
As the largest foreign investor in Madagascar – and one the biggest mining ventures in all of sub-
Saharan Africa and the Indian Ocean Region – Ambatovy has a duty to ensure that its safety, social,
environmental, and production standards abide by the laws and frameworks regulating mining activities,
both domestically and internationally.
Some of the major national and international regulatory standards that Ambatovy adheres to include:
Environmental Management and Social Development Plan
Ambatovy is committed to upholding stringent environment and social standards and complies with
a comprehensive set of policies. Ambatovy’s PGEDS provides the framework to ensure that all issues
identified during the ESIA are addressed through appropriate mitigation and follow-up.
3
The environmental management plan, which ensures that Ambatovy’s activities minimize any
residual impacts on the environment. The plan also includes the establishment of conservation
areas and participation in other environmental programs.
3
The social management plan, which guides Ambatovy’s relationship with local communities. The
plan strives to minimize Ambatovy’s impacts on Malagasy society, while maximizing potential
benefits for locals.
3
The health and safety management plan, which defines the conditions and manner in which work
must be carried out so that potential risks to the health and safety of Ambatovy personnel are
minimized.
Madagascar’s Large Mining Investment Act (LGIM, in French)
Madagascar’s Large Mining Investment Act (known as LGIM in French) was developed with the support
and assistance of the World Bank and endorsed by the Government of Madagascar in 2002. The LGIM
defines the framework for developing and operating large-scale mining projects in Madagascar and
provides for legal stability and financial incentives. Based on the LGIM framework, Ambatovy expects to
pay well over a billion dollars to the Government of Madagascar in royalties, taxes, duties, and other fees
over a period of approximately 30 years. The exact amount depends on multiple variables, including the
market price of nickel and cobalt, the cost of input commodities (such as coal, limestone, and sulphur),
inflation, among other factors.
International Finance Corporation (IFC) Performance Standards
The International Finance Corporation (IFC) helps companies and financial institutions in emerging markets
create jobs, generate tax revenues, improve corporate governance and environmental performance, and
contribute to local communities. The IFC’s main objective is to improve lives, especially for the people who
most need the benefits of growth.
Ambatovy’s US$2.1 billion lending agreement with a consortium of international development banks,
export credit agencies, and commercial banks stipulates that Ambatovy must adhere to the IFC
Performance Standards. Ambatovy’s compliance is audited regularly by third-party experts who represent
the lenders.
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AMBATOVY – SUPPORTING GROWTH AND DEVELOPMENT
