Friday 5th October 2012 was a day of celebration for the Ambatovy team, marking the production and exports of nickel and cobalt at the Plant Site in Toamasina. A large delegation comprised of the President of the Transition, Mr. Andry Nirina Rajoelina, Ambatovy’s Senior Management led by its President, Mr. Mark Plamondon, diplomatic representatives as well as other local and national guests joined in the celebrations.
The governmental delegation and some of the other honorable guests were also able to witness the production of nickel and cobalt briquettes at Ambatovy’s refinery. “Prospective investors are watching Ambatovy closely, and the company’s continued success also means that we are an effective Ambassador for Madagascar in the face of the international investment community”, said Ambatovy’s President, Mr. Mark Plamondon. The celebration also marked the entrance of Madagascar into the narrow circle of mining countries with potential for future development.
This historic moment for both Ambatovy and Madagascar, marks the beginning of a long operating period which will last at least 29 years, during which the companyis set to produce 60,000 tonnes of nickel and 5,600 tonnes of cobalt per annum, both refined to 99.8 % purity, in accordance with international market requirements, once production reaches cruising speed.
The decision to refine nickel and cobalt in Madagascar is a rare industrial commitment in sub-Saharan Africa, but is one which will allow the country to benefit from economic added values. Madagascar will receive substantial benefits, as nickel will become the country’s main export commodity, with exports well ahead of other more traditional products. On this subject, Mr. Mark Plamondon, President of Ambatovy, stated: “Unlike mining projects elsewhere in Africa, Ambatovy is not exporting the raw materials, nor is Ambatovy exporting an unfinished product. Ambatovy will export a finished product, which will be ready for sale on the international market. This is a major achievement for Madagascar and one of which we can all be very proud”.
In terms of benefits to the country, Madagascar will receive direct payments in the form of royalties and taxes amounting to an estimated 100 billion Ariary per year over the next 10 years, and US $3.5 billion over 30 years. Additionally, the country will also directly benefit from additional economic added value related to exploitation and refining, such as an increase in job creation and wealth generation through more business opportunities.
After a multi-year environmental impact assessment, Ambatovy obtain edits environmental permit in 2006 and began construction of the required infrastructure and industrial facilities. These comprise the Mine facilities in Moramanga, which are connected by a 220 km pipeline to the Plant Site in Tanandava, Toamasina. Extensive technical testing began in 2010 and was recently completed. During the operations phase, Ambatovy will continue to be a key employer with approximately 6,000 workers: 2,500 employed directly by Ambatovy and 3,500 indirectly through subcontractors. Since 2012, the company has awarded contracts, market opportunities and carried out purchases totaling 2.4 billion Ariary for local businesses. In 2011 alone, local purchases amounted to 440 billion Ariary.
