Summary
Socioeconomics
Consultation results indicate that economic opportunities created by the
mine are a main concern. This includes people who do not expect to
directly benefit, but who are interested to see economic alternatives to
agriculture are available to young people. Mitigation for socio-economic
effects includes reduction of negative effects and enhancement of
positive benefits.
The project is expected to bring large economic benefits to the
Moramanga area through creation of employment, demand for
businesses, contributions to educational institutions and improvements in
infrastructure. The project will partner with Moramanga and commune
governments to jointly manage the socioeconomic challenges and
opportunities that may arise as a result of the project. Emphasis will be
to see that the project is well integrated into the Moramanga area as a
sustainable development initiative. It needs to be considered that
economic benefits in and of themselves are associated with improved
socioeconomic status. To the extent that there is potential for negative
effects, direct mitigation and an adaptive management strategy will be
put in place to address the evolving effects so as to enhance the
realization of benefit.
Local labour and
businesses
The project will extend employment and business opportunities on a
preferential basis to mine site communes. Training and other assistance
will be provided to these communes to help residents take advantage of
these opportunities. When evaluating proposals for work on the project,
the extent to which suppliers and subcontractors employ and contract
mine site commune labour and businesses will be considered. Local
labour needs at the mine are expected to average 540 during
construction and 360 during operations.
Existing local businesses tend to be small and mainly oriented to serving
the needs of local residents and tourists. The proponent has worked
successfully with some local businesses over the exploration phase of
the project. Similar to employment, local business participation in the
project is expected to grow with time with the implementation of
measures to assist that participation. The project will implement these
measures under the Ambatovy Empowerment Program which is
designed to enable local companies to participate in the project, with a
focus on Small and Medium Enterprises (SMEs).
Total construction expenditures at the mine site are expected to reach
US$150 million. Operational expenditures are expected to be in the
order of US$7 million per year over the 27 year operations phase.
Closure and post-closure activities will also require local expenditure.
Therefore the total inflow of expenditures on local wages, goods and
services could be in the order of approximately US$340 million over the
life of the project. There are no estimates of the size of the economy in
Local Economy
January 2006
Ambatovy Project — 14
