Posted on February 13, 2012

The economic benefits of Ambatovy’s nickel and cobalt operations for Madagascar and its implementation areas are not only based on its financial revenues. They are multifaceted and contribute to different sectors of the economy.

Payment to the Malagasy Government

Ambatovy’s annual payment to the Government, from taxes, fees and royalties, will amount to tens of millions of dollars and will be more than 3 billion dollars over 30 years, based on the projection of the current price of nickel and cobalt.

The exact amount of Ambatovy’s payment to the Government is difficult to forecast because it will depend on the fluctuating price of nickel and cobalt on the international market and the cost of input commodities that the company will require in order to extract the nickel and cobalt.

Significant Job Creation

Ambatovy created over 18,000 jobs during its Construction phase and an additional 6,000 jobs during the Operation phase. This significant number of jobs created by Ambatovy benefits the local economy due to the several thousands of induced and indirect jobs in related sectors, such as transportation, food production, maintenance, renovation and waste management. Ambatovy also has the distinction of promoting a recruitment policy that prioritizes local applicants in order to maximize the economic benefits in its intervention areas.

“Buy locally, hire locally ” Policy

This policy reflects Ambatovy’s particular efforts to support Malagasy enterprises so that they can meet the Ambatovy’s requirements and standards while taking advantage of the business opportunities generated by Ambatovy’s nickel and cobalt mining.

The contracts granted by Ambatovy to approximately 500 local businesses are currently valued at over $ 1.2 billion, or more than 2,400 billion Ariary. Moreover, these companies, regardless of their size, are accompanied by ALBI, Ambatovy Local Business Initiative, which provides support through training, information sessions and quality control so that they comply with the company’s quality standards and requirements.

Nickel, first export product

Once Ambatovy’s optimum production speed is achieved, Nickel will be one of Madagascar’s most important export products, if not the most important. It will bring in significant foreign currency.

Because the nickel and cobalt will be refined in-country, Madagascar will benefit from many economic added values, including technology and skill transfer, development of the industrial sector through economic opportunities and job creation.