On the recommendation of the EITI, OMNIS must absolutely clarify its situation with QMM. Relations between the two parties experienced untimely circumvulsions.
Shadow areas to be clarified. The Extractive Industries Transparency Initiative (EITI)-Madagascar recommends if not orders the Office of National Mines and Strategic Resources, OMNIS, to disclose the evolution of its participation in the share capital of Qit Madagascar minerals, QMM .
And to mention his debts to Rio Tinto. Sources with the EITI indicate “discussions with Omnis officials who reassured him that there had been no change in his holdings”. Although this multi-party organization for industrial mining transparency notes in its relaxed report for the period 2019-2020 that “the number of Omnis shares in this mining company has increased, compared to what was reported in the EITI report 2018”. Hence the need for transparency on this part of the shareholding. How many shares and at what value will be or have been released?
There was a time when there was talk of recapitalizing QMM. With a strong contribution from the Malagasy State. But since then, relations between the two parties have experienced untimely circumvulsions. Acting for the Ministry of Mines and Strategic Resources, MMRS, Prime Minister Christian Ntsay massacred the big mines. “What have they brought to improve the daily lives of the surrounding populations?” he said.
Recapitalization
Later, apparently social demonstrations in Tolagnaro, around the production plant, forced QMM to suspend its activities, so as not to expose its employees to unnecessary risks.
In accounting terms, “the EITI points out that its 2018 report had announced a recapitalization project for 2019, amounting to 96 million dollars, or 19 million dollars corresponding to 20% of OMNIS. “This amount would thus be added to the debts of Omnis of 77 million dollars resulting from previous recapitalizations and of 6 million dollars corresponding to its initial participation not yet released”, resumes this recent report.
On the contractual level, “the establishment agreement governing the partnership between QMM and the State, represented by Omnis, which entered into force in 1998 is scheduled to expire in February 2023. Discussions on the tax and customs regime at which is submitted by this mining company before this expiry date had already been committed since February 2021”. So many thorns on the feet of Minister Herindrainy Rakotomalala.
