Complying with Regulations
and Standards (continued)
Equator Principles
The Equator Principles are voluntary standards obliging signatory banking institutions to take into account
social and environmental criteria in the large-scale projects they finance. Presented in June 2003, these
principles respect 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 working standards among other issues. Ambatovy’s project-financing agreement requires that
it to adhere to the Equator Principles. Independent engineers representing the lenders regularly evaluate
the company’s performance.
Mise en Compatibilité des Investissements avec l’Environnement
Mise en Compatibilité des Investissements avec l’Environnement
(MECIE), a national decree referring
to environmental compliance of investment projects in Madagascar, describes the obligation of mining
investment projects to conduct an environmental and social impact assessment (ESIA), the need to hold a
public audience during the environmental evaluation, the enumeration of the conditions and the process to
obtain the environmental license within the framework of a mining project, as well as the establishment of
a code of conduct and penalties for offenders.
Ambatovy received its environmental permit in December 2006, six months after the environmental and
social impact assessment was filed.
Voluntary Compliance
Ambatovy has taken additional voluntary measures that go beyond any legal mandates. They will make
superior safety, environmental and social results possible and include, but are not limited to:
3
International Council on Mining and Metals Principles
The International Council on Mining and Metals (ICMM) is an organization that was established
in 2001 to act as a catalyst for performance improvement in the mining and metals industry. The
ICMM brings together 18 mining and metals companies as well as 30 national and regional mining
associations and global commodity associations. Ambatovy is not a signatory, but endeavours to
apply the ICMM principles as a responsible practice.
3
Extractives Industries Transparency Initiative
The Extractives Industries Transparency Initiative (EITI) is a global initiative established in 2002 to
promote transparency and support improved governance in resource-rich countries through the
full publication and verification of company payments and government revenues from oil, gas, and
mining (see page 39).
3
Business and Biodiversity Offsets Program (BBOP)
Ambatovy’s biodiversity offsets program is being implemented in conjunction with the Business
and Biodiversity Offsets Program (BBOP), a partnership between companies, governments, and
conservation experts to explore biodiversity offsets (see page 31).
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AMBATOVY – SUPPORTING GROWTH AND DEVELOPMENT
