As expected, the debates at the Works for the overhaul of the Mining Code yesterday at the Mining Business Center in Mamory Ivato were agitated. Yesterday, smallholders emptied their bags to make themselves heard.
Underground tension. The tone went up several notches yesterday at the Mining Business center in Mamory Ivato. When small mining operators were asked to submit their proposals as part of the overhaul of the Mining Code. They took advantage of this opportunity, in the presence of the Minister of Mines and Strategic Resources, Herindrainy Rakotomalala, and his close collaborators, to warn of their untenable situation, express their grievances and propose solutions, the primary purpose of these consultations extended by groups. of interest.
Haja Ralambomanana, president of the Federation of Malagasy mining operators, FOMM, which brings together 148 multidisciplinary entities, opened hostilities. “Our demands focus on three essential points. First, the lifting of the freeze on the granting of exploration and exploitation permits, reserved for small mines, PRE. Failing this, it would be wiser and preferable to issue the “Pass” to those who have regularly paid the Mining Administration Fees to the Mining Cadastre Office of Madagascar, BCMM. Or, accept the principle of renewal, an acquired right. Then, we demand the resumption of exports of gold and precious stones, with the reference values set by us, the operators concerned and our supervisory ministry, without the interference of other entities. Our ministry must establish its authority and its independence, to defend us, without which it has no raison d’être. Finally, we would like to know regarding the follow-up to be given to the program. There has already been talk of a framework of texts for the draft Mining Code to be submitted to the government for consideration. We have no information on this configuration”.
From one concern to another, he does not hide legitimate apprehensions shared by his congeners. “We too have a complete module on this register. I think that one day of exchanges would not be enough to define all the aspects of such a vast and complex subject as the Mining Code. Which version will be adopted? What are the processes and procedures to follow? We don’t have a control tool on that. It is possible that disputes will arise during the examination of the draft Mining Code in the National Assembly. As is customary in this kind of public-private dialogue”.
Framing areas
The FOMM filed a letter of request delivered by hand to Minister Herindrainy Rakotomalala, at the start of this eventful session.
In response, Herindrainy Rakotomalala tried to lighten the mood. “The process of adopting the Mining Code will extend over time. With the passage to the National Assembly, the publication of the decrees of applications and other administrative acts. We are not going to wait for the end of this long road to be able to work. But I want to make it clear that everything must be done in accordance with the law. This is why the government proposes the Zones d’cadre with your Groups. Forty have already responded to this request. I also inform you that there are only 25 valid PREs left out of the 1311 issued in 2010. However, access to renewal requires this validity. With long-term complications to consider”.
An executive from a gemstone company made a pertinent point. “According to information that I have cross-checked, Malagasy technicians have drawn up the Mining Code of the Democratic Republic of Congo, cited as an example in Africa. Why not refer to the Mining Code in force because the establishment of these Supervision Zones will frustrate the owners of PREs”.
Thank you Ratoaboalamanana, for his part, a politician accustomed to verbal contests, under his cap as a small mining operator, has lost none of his oratorical verve. “Those who are blocking this sector, a pillar of the national economy, are poisoning the President of the Republic Andry Rajoelina. We are not going to demonstrate or strike. But these recurring difficulties that are piling up can have political repercussions,” he warned. “It’s not too late to save what can still be saved,” he concludes, to thunderous applause.
It is true that the mining sector supports millions of people. That in 2019, the value of its exports was 2,820 billion ariary, or 29.24% of the whole. To fall to 1,384 billion ariary in 2020 because of the health crisis, i.e. 18.33% of the total. It only contributed 4.68% of the Gross Domestic Product, GDP, at last count. A poor performance in relation to its immense potential.
“I understand your dismay. Because it is a market of opportunity. For example, there was a time when a ton of chrome sold for 300 dollars. If you missed this opportunity, it will be difficult to catch up. It is well known that gold is a safe haven par excellence in times of crisis. While three counters at most are in operation at the present time. I am committed to doing everything possible to get you out of this counter-productive spiral,” promised Herindrainy Rakotomalala with a burst of pride.