2011
AMBATOVY SUSTAINABILITY REPORT
12
Commitments to External Initiatives
Mandatory Compliance
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 on environment, labour and social
aspects for a major investment project.
Investment and Environment Compatibility Regulation
(
Mise en Compatibilité des Investissements avec
l’Environnement, MECIE
)
MECIE regulates environmental compliance for investment
projects in Madagascar. It describes the process and conditions
for obtaining the necessary environmental permits and
establishes regulations and penalties. 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,
Ambatovy developed an Environmental Management and
Social Development Plan, which covers four main areas:
3
The Environmental Management Plan and Program
provide the framework that ensures that issues
identified in the ESIA are addressed.
3
The Social Management Plan guides Ambatovy’s
relationship with local communities.
3
The Health and Safety and Emergency Response
Measures define 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.
3
There are also key monitoring and evaluation
components to the plan that provide us guidelines for
monitoring compliance with the regulations.
The ONE monitors Ambatovy’s performance against these
plans.
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. Under the LGIM, we are
required to report annually to the government on a range
of sustainability issues, such as local employment and
environmental measures. Ambatovy was certified under the
LGIM in 2007.
Equator Principles
The Equator Principles are voluntary standards for banking
institutions. Equator Principles Financial Institutions (EPFIs)
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 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. Some of Ambatovy’s financing institutions are
EPFIs and, as a result, our financing agreement requires that
we uphold these principles.
Ambatovy strives to maintain the highest ethical standards, to respect local culture and traditions, and to comply
with the laws and regulations of Madagascar. We endeavour to meet and, when possible, exceed the mandatory
and voluntary compliance requirements of our agreements with our lenders, the Government of Madagascar and
other stakeholders.
