2010
AMBATOVY SUSTAINABILITY REPORT
14
B4. Commitments to External Initiatives
B4.1 Mandatory Compliance
Investment and Environment Compatibility Act (
Mise en
Compatibilité des Investissements avec l’Environnement,
MECIE
)
A national decree on environmental compliance for
investment projects in Madagascar, MECIE describes the
obligation of mining projects to conduct an environmental
and social impact assessment and to hold public hearings. It
also describes the process and conditions for obtaining the
necessary environmental permits and establishes a code
of conduct and penalties for offenders. Ambatovy received
its environmental permit from the Malagasy authorities in
December 2006, six months after filing its Environmental
and Social Impact Assessment (ESIA). Following the ESIA,
the Project developed an Environmental Management and
Social Development Plan (
Plan de Gestion Environnemental
et Developpement Social
,
PGEDS
), which is made up of three
key components:
3
The Environmental Management Plan provides the
framework that ensures that all issues identified in
the Environmental and Social Impact Assessment
are addressed through appropriate mitigation and
monitoring.
3
The Social Management Plan guides Ambatovy’s
relationship with local communities.
3
The Health and Safety Management Plan defines the
conditions and manner in which work must be carried
out so that potential risks to the health and welfare of
Ambatovy personnel are minimized.
The ONE monitors Ambatovy’s performance under the
PGEDS.
International Finance Corporation (IFC) Performance
Standards
The IFC is a member of the World Bank Group established to
foster sustainable economic growth in developing countries by
financing private sector investment, mobilizing capital in the
international financial markets and providing advisory services
to businesses and governments. Our agreement for US$2.1
billion in project financing requires that we adhere to the
IFC’s Performance Standards. The lenders are represented
by a group of independent experts who audit Ambatovy’s
compliance each quarter.
Large Mining Investment Act (
Loi sur les Grands
Investissements Miniers, LGIM
)
Madagascar’s LGIM established the legal framework for
developing and operating large-scale mining projects in
the country. The LGIM was developed with the support and
assistance of the World Bank. LGIM certification for a project
ensures that the terms of its mining permit will not be changed
after it has been granted and provides investment incentives.
Ambatovy was certified under the LGIM in 2007.
Equator Principles
The Equator Principles are voluntary standards to which
signatory banking institutions commit. Equator Principles
Financial Institutions (EQFIs) pledge to take into account
social and environmental criteria in the large-scale projects
they finance and not to finance loans where the borrowers are
not willing or able to comply with these criteria. Presented in
June 2003, these principles are consistent with the standards
promoted by the World Bank/IFC and form the basis of
responsible financing. The Equator Principles require an
evaluation of environmental impacts of high-risk projects and,
in certain cases, a management plan that addresses
socio-economic impact, environmental protection, human
rights and labour standards among other issues. Some of
Ambatovy’s financing institutions are EQFIs and, as a result,
our financing agreements require that we uphold these
principles.
Ambatovy strives to maintain the highest ethical standards, respect local culture and traditions, and comply with the
laws and regulations of Madagascar. We endeavour to meet and, when possible, exceed our obligatory and voluntary
compliance requirements under our agreements with our lenders and the Government of Madagascar.
