May 21th • 3 min read
#Mining #Industry #Nickel #Energy #Africa #madagascar

Overview of current mining and energy projects in Madagascar

Having previously explored mining projects in Madagascar, we recently had the opportunity to gather updated information on mining and energy projects underway in Madagascar this year. To shed light on the current situation in the mining sector, the challenges faced and the opportunities ahead, we sought the expertise of Mickael, Account Manager at Easy Skill in Madagascar. Here is a summary of our findings.
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Mining projects in Madagascar

According to the African Development Bank, ilmenite, nickel and cobalt mining accounts for 1.5% of Madagascar's GDP.

The main mining players include:

  • Ambatovy - A nickel and cobalt mine located on the east coast of Madagascar. The mine is operated by a joint venture between Sumitomo Corporation, Sherritt International and Korea Resources Corporation. Ambatovy contributes 30% of Madagascar's export earnings. 
  • QMM - An ilmenite, zircon and rutile mineralised sand mine in southern Madagascar. It is operated by Rio Tinto, a multinational mining company.
  • Ambodilafa - This is a vanadium and titanium project located in south-west Madagascar. The project is operated by Australian company Neometals.

Focus on nickel

The mining sector, particularly nickel, plays an important role in Madagascar's economy. Nickel production is currently affected by price fluctuations on the world market, due in particular to the flooding of the market by Chinese and Indonesian production. This has led to a restructuring of costs and staffing levels in mining companies operating in Madagascar.

Despite these challenges, Malagasy nickel remains competitive in terms of quality and production costs. Madagascar is even ranked as the world's 8th largest exporter of refined nickel. However, efforts are needed to optimise nickel production and refining in order to maintain its competitiveness on the world market.




Diversification of mining projects

In February 2024, the Malagasy government announced a new impetus for the mining industry, with the relaunch of suspended projects and a commitment to resolving the problems encountered.

In addition to nickel, other mining projects are on the horizon, including:

  • The expansion of the Molo mine, focusing on graphite extraction by Next Source Materials Inc. This extension is expected to increase production capacity to 17,000 tonnes per year by June 2024. Graphite is mainly used in the mechanical, electrical and steel industries.
  • Exploitation of sand deposits. The Australian company Base recently obtained permission to mine sand deposits in Toliara. Mining operations are scheduled to begin in September 2024. The Toliara mineral sands project is considered to be one of the best mineral sands development projects in the world, with a mine life of 38 years. The project aims to produce 904 million tonnes of ilmenite, zircon and rutile, which are used in the production of white pigments for paint, plastics and paper, as well as in ceramics and metallurgy.

Madagascar has big ambitions. The government is also planning to open around twenty mining projects over the next five years.


Transition to renewable energies

In the energy sector, Madagascar is increasingly turning to renewable energies to meet its growing demand for electricity. Hydroelectric and photovoltaic projects are being developed to increase the island's electricity production capacity. These include:


  • The installation of 78 solar power stations, marking a shift towards cleaner, environmentally-friendly energy. These solar power stations will add 77 megawatts (MW) to the country's electricity production, reducing its dependence on fossil fuels.


These projects offer opportunities not only to meet local energy demand, but also to stimulate economic development through the availability of affordable and clean energy. In addition, these projects will help to reduce Madagascar's dependence on fossil fuels and promote environmental sustainability.


Challenges and opportunities in the mining and energy sectors


Despite the progress made in the mining and energy sectors, challenges remain. Effective project implementation requires rigorous resource management, strategic investment and cooperation between local and international players.

The local content policy, aimed at encouraging employment and the development of local skills, is a crucial aspect to be taken into account in the implementation of these projects. However, further efforts are needed to ensure its effective and equitable application.

Madagascar is at a crucial juncture in its economic development, with significant opportunities in the mining and energy sectors. By harnessing its natural resources and investing in renewable energy, Madagascar can not only meet its growing demand for energy, but also promote long-term sustainable and inclusive development.


Easy Skill has been working on mining projects in Madagascar for a number of years, and our teams are well aware of the challenges facing the country's manufacturers. We now have a permanent team on the island to help major mining groups with...:

  • Assistance and recruitment of local talent thanks to our pool of over 80 talents.
  • Training and coaching to upgrade the skills of the local workforce
  • International mobility of existing teams to gain skills and experience on other mining sites around the world.
  • Bringing in high value-added skills that are not available in Madagascar.

If you would like to find out more about our support in the Malagasy mining sector, please contact us.
Mickael Crom

Account Manager Madagascar

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