Addressing Social Impacts
Large-scale mining projects, if not properly managed, can have adverse social impacts on local
communities. Common problems include: inflation, a spike in migration, increased vehicular traffic, and
the proliferation of prostitution, sexually transmitted diseases (STDs), and alcohol abuse. Ambatovy
endeavours to address these risks proactively and collaboratively through meaningful stakeholder
engagement and regular communication. In 2010, important efforts were made to counteract the
following issues:
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Avoiding inflation:
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Regular analyses of the price of essential products in local markets are conducted near Project sites. These
studies, along with national statistics, help ensure Ambatovy develops effective strategies to avoid and
mitigate inflationary pressures. In 2010, the inflation rate in Toamasina was 1.75% below the national average.
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The Ambatovy Local Business Initiative (ALBI) has put in place three bulk purchasing centers to source
directly from producers. This means that the local market does not experience exceptional demand or the
resulting pricing pressure.
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Housing for staff is provided to mitigate inflation in the housing and rental market near Ambatovy sites.
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Reducing migration:
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Recruitment processes encourage local applicants, with the necessary competencies and skills, to apply for
vacancies which reduces the influx of migrant workers.
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Ambatovy has also established Redeployment Centers in Toamasina and Moramanga to help demobilized
workers find new income-generating opportunities.
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To support the region of Atsinanana and the district of Moramanga, Ambatovy, in collaboration with the
Ministry of Labor, contributed to the renovation of the Regional and District Employment Offices, which will
benefit local job seekers and organizations with hiring needs.
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Respecting cultural sites:
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Ambatovy has a team of archeologists that surveyed cultural heritage sites prior to Construction to ensure
they were not impacted by Project activities. Whenever this was not possible, strict protocols were followed
for translocation. Disruptions have been minimal.
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In mid-2010, Ambatovy’s archeology team began digitally cataloguing artifacts they discovered. By the end of
2010, nearly 30% had been catalogued.
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Code of conduct:
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At the start of Construction, a code of conduct was introduced for expatriate personnel that governs behavior
with respect to the local culture, environmental protection, personal behavior, and other core values. In 2008,
a Project-wide version of this code was developed and all staff (national and expatriate), including contractors,
have since been required to adhere to it. The latest version includes Ambatovy’s zero tolerance for issues
such as:
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Prostitution and sexual exploitation.
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Sexual exploitation of children, to ensure full compliance with International Labor Organization’s
Convention 182, International Finance Corporation Performance Standards and Madagascar’s national
commitments and laws.
The code includes confidential reporting mechanisms and disciplinary procedures.
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AMBATOVY – SUPPORTING GROWTH AND DEVELOPMENT
