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The realities of the Mining Sector in Madagascar

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According to the data collected through reconciliation reports E.I.T.I. from fiscal year 2011 to 2016:

- the contribution of the Extractive Sector to the GDP of MADAGASCAR rose from 0.53% in 2011 to 4.18% in 2014 (10.67 million USD) then 4.84% in 2015 (11.28 million USD) and 4, 60% in 2016 or USD 10.26 million (source EITI Report FY 2016);

- The Mining Sector's share of exports, estimated at 8.00% of total national exports in 2012, reached 38.48% in 2014 to reach 23.62% in 2016, ie USD 515 million. This decrease is mainly due to the decline in the development activities of Mining Projects;

- Tax contributions from the Mining Sector, estimated at 7.83% of the total tax revenue of the State, ie 39.89 million USD in 2011, amounted to 14.00% in 2013 (81.25 million USD) and decreased to 2.48% in 2014 (35.05 million USD) to reach 4.20% in 2016 (49.58 million USD);

- the contribution in Foreign Direct Investments (I.D.E.) was considerable, the cumulated investments made by QMM RIO TINTO and AMBATOVY between 2005 and 2013 having approximated 10 billion USD. Note that in 2014, I.D.E. fell to $ 101.09 million as a result of the significant decrease in investments of the two (2) main mining projects now in operation phase combined with the absence of major new projects;

- although mining is not a labor-intensive sector, the number of direct jobs is estimated at more than 5,500 in 2014 and nearly 20,000 for indirect jobs. Regarding the Informal Sector (gold mining, precious stones, ... ..), the estimated figures indicate 100,000 to 500,000 people. In 2016, the Mining Sector contributes to 19.90% of jobs;

- the development of major mining projects goes hand in hand with the creation of public and private infrastructures: port, roads, bridges, power stations, water supply and distribution, which also often take into account the community needs and those of other sectors such as tourism or agriculture.