2011
AMBATOVY SUSTAINABILITY REPORT
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Our vision is to contribute significantly to Madagascar’s
development and we see great potential for Madagascar’s
economic development as a result of our activities. Nickel is
set to become one of Madagascar’s most valuable exports,
bringing foreign revenues to the economy. Significant benefits
to local communities are already manifested in steady wages,
improved infrastructure and new business opportunities
for suppliers.
We also recognize that negative economic impacts can
occur. For example, increased migration to Toamasina and
Moramanga has benefitted local communities with new
business, but also put pressure on the local labour market
as people compete for a limited number of new jobs. Price
inflation, particularly related to housing, has been noted in
Toamasina and Moramanga, which has placed pressure on
vulnerable populations without land tenure. Furthermore, with
an investment of this size, there is a responsibility to ensure
that funds are managed ethically and transparently, and that we
do our due diligence to prevent corruption in our transactions.
In order to maximize the benefits and minimize the negative
impacts, Ambatovy endeavours to implement three key
policies: hire locally, buy locally and manage transparently our
funds and payments to government.
The year 2011 was a particularly exciting year as we moved
closer to maximizing local supply and employment. We
had a number of successful new initiatives to invest in the
capacity of local suppliers as well as training for our Supply
Chain Department. Our efforts to build the capacity of local
Economic Performance Goals
Invest in local capacity to participate in our supply chain.
Demonstrate transparency in tax payments and
compliance with the Government of Madagascar and
other financial regulations.
Maximize local recruitment and invest in the long-term
sustainability of our Malagasy workforce.
2011 Results
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Major programs and initiatives in 2011 included local
supplier conferences and training sessions, the introduction
of the Ambatovy supplier audit program and continued
support to key local enterprises.
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In 2011, we continued to support the EITI process in
Madagascar as a participant of the Multi-Stakeholder Group
and were one of three extractive industries companies to
disclose their payments to the Government of Madagascar
in the first official EITI report, published on June 8, 2011.
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In 2011, approximately 77% of total employment was
held by nationals (includes construction workforce and
contractors). For our operations workforce, national
employment was even higher at 91%. We had several key
programs start this year, which aim to build up the human
capital of our employees and young graduates in the
region.
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Major challenges encountered
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Challenges en route to resolution
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Good progress made toward goal
employees kicked into full gear with such initiatives as the
Technical Excellence Program (PEXT) and the Ambatovy
Leadership Development Program (ALDP).
In addition, we implemented key tactics against corruption.
We participated in Madagascar’s first official EITI
reconciliation report by publicly disclosing our payments to
the Government of Madagascar. We also initiated a training
course for our employees on ways to detect and prevent
corruption. We are eager to continue this program as we know
that there will be positive effects as we promote the highest
ethical standards for sourcing and payment.
We are proud of these efforts and look forward to embedding
such practices into our business as we move into production.
Direct Economic Performance
Unless otherwise noted, all figures are stated in US dollars for
the year 2011.
Direct Economic Value Generated
Revenue generation will commence after operations begin.
However, in 2011 Ambatovy was able to contribute over
$15 million to the local economy in the form of employee
wages and benefits. In addition, we paid over $212 million for
goods and services supplied by Malagasy enterprises.
Economic Performance
Management Approach to Economic Sustainability
