2010
AMBATOVY SUSTAINABILITY REPORT
7
B1. Organizational Profile
Mine Site
The mine site is located near the town of Moramanga, 80 km
east of Madagascar’s capital, Antananarivo. The mine lies
at the southern end of the residual eastern rainforest known
as the Ankeniheny-Zahamena Corridor (
Couloir Ankeniheny-
Zahamena, CAZ
). The near-primary forests of the mine area
have undergone considerable human-induced pressures,
including hunting and gathering, selective logging, slash-and-
burn agriculture, uncontrolled fires and species collection
for trade.
The ore body at the mine consists of two lateritic nickel
deposits, the Ambatovy Deposit and the Analamay Deposit.
The Ambatovy and Analamay Deposits constitute one of the
world’s biggest lateritic nickel reserves, which cover an area
of about 1,300 ha with a depth of 20 to 100 m. Ore will be
surface-mined and turned into slurry for transportation to the
plant site via the pipeline.
Pipeline
Ambatovy’s 220 km pipeline runs from the mine to the plant
site in Toamasina. The route selected for the pipeline made
some significant deviations to avoid sensitive environmental
areas, cultural sites and local populations. It is buried for
the majority of its route, avoiding critical wildlife habitats
and residual forest fragments. In addition, workers from
communities along the pipeline were hired to plant more than
six and a half hectares of deep-rooting vegetation to stabilize
steep slopes, prevent erosion and assist rehabilitation.
Plant Site
The plant site, which houses Ambatovy’s headquarters,
is located 11 km south of the Port of Toamasina within a
coastal suburban landscape. It is an industrial complex
covering more than 320 ha. Its facilities were designed
and built and will operate in accordance with Malagasy
regulations and IFC Performance Standards. The site’s
main components include a pressure acid leaching plant
that separates the metal from the ore, a metals refinery to
process and produce pure nickel and cobalt, and associated
utility and ancillary plants to support both the acid leach
plant and the refinery. Site facilities also include a medical
clinic, training centre, several canteens, warehouses,
workshops, fuel storage facilities, a laboratory, offices and
living quarters for workers.
Tailings
Materials with no commercial value left over after mining,
processing and refining are known as tailings. These are
neutralized and pumped from the plant site through a 15 km
pipeline to the tailings site – a secure, stabilized area where
treated residue is discharged for permanent safekeeping.
Excess water from the tailings is discharged into the ocean
through a diffusor system to make localized impacts unlikely.
A portion is reused at the plant site.
Port
Toamasina is situated on the east coast of Madagascar and
is Madagascar’s principal port. The port has two main piers
and is protected from large cyclone waves by an isolated
breakwater. Ambatovy has made a substantial investment in
upgrading the port’s facilities.
End Products
Ambatovy will use hydrometallurgical processing developed
by Sherritt International Corporation (“Sherritt”) to produce
finished nickel, cobalt and ammonium sulphate. This industry-
leading process is used in mining operations around the
world. It generates 99.8% pure nickel and cobalt. Ammonium
sulphate, a by-product of the process, will be produced in
pellet form and sold as agricultural fertilizer.
Markets Served
Ambatovy will supply a global portfolio of nickel and cobalt
customers located primarily in Asia, Europe and the United
States. These customers will use Ambatovy products as
inputs for the production of stainless steel, chemicals for the
manufacture of battery products, special alloys for turbine
components and other industrial products. We share with our
customers the values of operating fairly, strategically and with
integrity to enhance the value of our products and services.
