During the week of July 23, 2012, a team of independent engineers (IEs) visited each of Ambatovy’s sites to evaluate the Company’s compliance with international regulations. The IEs are renowned experts within their field appointed by Ambatovy’s lender banks that adhere to the Equator Principles – a voluntary set of standards for determining, assessing and managing social and environmental risk in project financing. After their visit, the IEs will report their findings to the lenders.
Ambatovy’s activities are routinely reviewed by regulatory bodies, from government officials to environmental and social experts, to check how the Company is complying with national and international regulations, such as the MECIE Decree and International Financial Corporation’s Performance Standards.
In previous visits, the Independent Engineers focused mainly on the general progress of construction in comparison with previous visits. Since construction is now complete, as well as reviewing progress made at both the mine and plant site since their previous visit, the Independent Engineers also reviewed the early stage ramp up operations, construction and any related issues, such as environmental, social management and compliance, to ensure alignment with the Equator Principles which are based on the IFC Performance Standards.
At the Plant, the IEs visit went to the auxiliary utilities, PAL and refinery, the port and ammonia storage, plus they met with various personnel in order to cover all aspects of site operations. A similar program was carried out at the mine site.
Ambatovy’s values and operating practices are based on good governance, i.e. transparency, sustainability, and responsible operating practices, and Ambatovy strives to demonstrate the value of good governance by making all its decisions in a transparent fashion that nurtures public trust and engagement. Moreover, Ambatovy’s US$2.1 billion lending agreement with a consortium of international development banks, export credit agencies, and commercial banks stipulates that Ambatovy must adhere to the Equator Principles, and Ambatovy’s compliance is audited regularly by third-party experts who represent the lenders, such as the Independent Engineers.
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, such as Ambatovy. Presented in June 2003, these principles respect the standards promoted by the World Bank/International Finance Corporation and form the basis of responsible financing.
Protecting the interests of employees, local communities, shareholders, and lenders is foremost in Ambatovy’s decision-making, and in order to deepen the public’s trust and to make it possible for stakeholders to understand our activities more accurately and thoroughly, Ambatovy voluntarily discloses far more than is required by law.
Additional voluntary measures include Ambatovy’s support the Extractive Industries Transparency Initiative (EITI) in Madagascar. In 2011, Ambatovy participated in preparing the first EITI reconciliation report, which was published in June 2011. Ambatovy will continue to participate in the EITI multi-stakeholder group, given its importance in ensuring full transparency with respect to taxes and other revenues from the extractive sector.
