2010
AMBATOVY SUSTAINABILITY REPORT
32
Donations
Every year Ambatovy sets aside dedicated funds to respond
to requests for donations and sponsorships. Our donations
policy ensures a transparent process, timely responses and
accountability for funds and materials donated. Ambatovy has
supported civil society groups working in the areas of health,
education, hygiene and sanitation. Our donations have also
funded activities related to World AIDS Day, International
Women’s Day, sporting events and school infrastructure.
Payments to Providers of Capital
No loan repayments have been made at this point as the
Project is still in the construction phase and not yet generating
returns on investment. It should be noted that Ambatovy has
received no financial assistance or direct contributions from
the Government of Madagascar.
Community Investments
Investment in public goods and community projects allows
both the Project and our neighbours to have improved market
access and economic participation. Prior to construction, the
physical amenities in Madagascar could not support the size
and scope of Project activities. As a result of our investment
in infrastructure, both the Project and local communities
may take advantage of these elements. For details on
infrastructure investments, see section C2.4.
Project C.U.R.E.
Ambatovy is working in partnership with the American
non-governmental organization Project C.U.R.E. and
Madagascar’s Ministry of Health to improve access to and
the quality of health care for communities neighbouring
Project sites. Specifically, Ambatovy funded the
transportation of $2.5 million worth of medical equipment
and supplies donated by Project C.U.R.E. to Madagascar.
The shipment included defibrillators, centrifuges, medical
consumables (bandages, tubes, etc.), sterilizers, and care
and diagnostic equipment to upgrade district-level hospitals
and basic health centres in and around Toamasina,
Moramanga and Brickaville. This initiative will be replicated in
other areas where the Project is present in 2011.
Table 4: Annual Operating Costs
Annual Operating Costs
Non-strategic investments
$0
Land and compensation payments
$388,300
Payroll
$6,063,900
Benefits
$3,241,700
Salary tax
$9,969,500
Land leases
$1,000,000
Tariffs
$839,300
Royalties
$0
Other
$1,623,900
Donations and sponsoring
$164,200
Total
$23,290,800
Compensation
While the Project endeavours to avoid and minimize impacts
on the homes and livelihoods of surrounding communities,
some construction activities resulted in unavoidable loss
of property and income. In these instances, the Project
compensated accordingly. In 2010, compensation was
paid to people impacted by construction in four areas: the
pipeline, the plant and tailings sites, the mine bypass road
and the mine lease area. Compensation was monetary or
in-kind. If land was not yet ready to be transferred, the Project
disbursed paddy (unprocessed rice) to compensate for
production losses.
Table 5: Major Compensation Disbursements by Zone
Major Compensation
In-Kind
Disbursements
No.
(Paddy,
BY ZONE
Recipients tonnes)
MONETARY
Pipeline – impacted rice fields
344
123
$156,673
Pipeline – ROW construction
733
0
$159,057
Resettlement villages
68
0
$13,717
Mine area
299
10
220
$58,843
Total
1,444
343
$388,290
Employee Wages and Benefits
As of the end of 2010, the Project (construction and operations)
spent a total of $19.8 million on local employee wages and
benefits. Table 4 shows local salaries and benefits only to
operations employees and does not include construction
employees (such as those of contractor companies that
handle their employment terms separately from the Project).
Payments to Governments
Ambatovy has been an active participant in the Multi-
Stakeholder Group for Madagascar’s EITI candidacy. The first
report of audited payments to the Government of Madagascar
will be published in 2011, in accordance with the country’s bid
for compliant country status. It should be noted that table 4
shows salary tax paid on all operations salaries for nationals
and expatriate visas, whereas the salaries and benefits are
referring only to national employees. Disaggregated tax
figures were not available, however we will endeavour to
report them in the following year.
10
This number includes compensation payments to 18 local communities (rather than to individuals or heads of households) for disruption to sacred sites, which were seen to belong
to the entire community rather than a single person.
C2. Economic Performance
