Madagascar
Answer ... An exploitation or E permit covers the minerals mentioned in the permit that exist within the permit area for which it is granted. However, if the permit holder discovers a new mineral that was not initially mentioned in the exploitation permit, it may request an extension of the permit to cover the discovery.
The E permit gives the holder the exclusive right to undertake exploitation and exploration within the defined perimeter.
Any application for an E permit for which an environmental impact study is required must be accompanied by a letter of commitment not to start any mining activity before obtaining the environmental permit, after approval of the environmental impact assessment document prepared by the applicant in accordance with the environmental regulations in force.
The E permit is issued within 30 working days of submission of the application to the Bureau du Cadastre Minier de Madagascar (BCMM).
Madagascar
Answer ... The main principle set out in the Mining Code is the ‘first come, first served’ approach. In addition to this, the following requirements should be satisfied:
- Only Malagasy registered entities can acquire exploration permits (justified by the certificate of incorporation and memorandum and articles of association).
- The applicant must provide proof of its capacity to carry out the activities (eg, that it is not subject to any ban).
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The applicant must pay the annual mining administration fees corresponding to the requested squares:
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- 25% of the fees as a processing fee upon filing the application dossier;
- 56% of the fees 20 days after filing the application dossier; and
- 19% of the fees within five days of the Bureau du Cadastre Minier de Madagascar’s (BCMM) decision to grant the permit (failure to pay results in cancellation of the granting decision).
- The requested squares must be confirmed as available (subject to a BCMM check based on the exact location of the squares provided by the applicant).
- The limits on the number of squares the applicant can request must be observed (ie, an entity can own several R permits, but the R permits cannot cover more than 10,000 square kilometres or 25,600 squares).
- An investment plan and exploration programme, duly signed by the applicant, must be submitted.
- An environmental commitment letter must be submitted confirming that the applicant will not commence activities until it has obtained the necessary environmental authorisation.
Madagascar
Answer ... No other administrative fees are payable in relation to the E permit application.
Madagascar
Answer ... The E permit remains valid for 40 years and is renewable several times for periods of 20 years each.
The renewal process is as follows:
- The renewal application dossier is submitted to the BCMM at least 45 working days prior to expiry of the R permit.
- The application dossier is verified by the BCMM.
- A filing receipt is issued by the BCMM upon payment of the renewal fees.
- The renewal application is registered in the BCMM register.
The renewal application dossier includes the following:
- the application form, duly completed and signed;
- evidence of payment of all administrative fees in the previous year;
- the mining permit card that is subject to the renewal application;
- an exploration programme, duly signed;
- a copy of the environmental authorisation;
- a description of the work completed during the previous term of the permit (if no activity was performed, renewal can be granted only for half of the previous perimeter); and
- copies of any security documents over the E permit that is subject to the renewal application.
The renewed E permit is granted by the ministry within 30 days of filing of the renewal application.
Madagascar
Answer ... Only Malagasy registered entities can own mining rights. As of the time of writing, no restrictions apply regarding foreign ownership of mining companies. However, this may change depending on the outcome of the ongoing revisions to the Mining Code.
Madagascar
Answer ... No indigenous ownership requirements apply to E permits.
A small-scale regime allows nationals to undertake exploration and exploitation activities using artisanal techniques.
Madagascar
Answer ... As of the time of writing, no mandatory provision entitles the state to a share in a mining company. However, the state and any private company are free to negotiate state participation in the mining company.
Madagascar
As of the time of writing, there is no mandatory requirement for the government to enter into a mining development agreement in addition to the permits. However, the state and any private company are free to negotiate any agreement relating to the development of a mine.
Madagascar
Answer ... E permits may be transferred. The transfer agreement is signed and filed together with any relevant paperwork (eg, corporate authorisations) at the BCMM, which then passes the transfer file to the ministry. In theory, approval is granted within 35 days.
The following conditions must be satisfied in order for the transferred permits to be valid:
- the issue of a ministerial order, duly signed by the minister of mines for exploration;
- the issue of the transferred permit card, duly signed by the managing director of the BCMM; and
- continued payment of the mining administrative fees.
Madagascar
Answer ... Security may be taken over E permits. The mortgage agreement must be signed and registered together with the relevant paperwork (ie, corporate authorisations) with the tax authority and the BCMM.
Madagascar
Answer ... Prior to commencing any abandonment or closure works, the holder of an E permit must submit the following documents to the regional department of the Ministry of Mines:
- a topographic plan of the area in which the abandonment works will take place;
- a plan of the underground gallery and the drilled holes to be closed;
- the techniques to be adopted for the performance of the closing works; and
- the techniques to be adopted to mitigate environmental impacts.
The regional department of the ministry must issue its approval or refusal within 15 days of submission of the above documents. A refusal must be motivated and the permit holder will be given the opportunity to adjust the relevant document(s) accordingly.
Furthermore, before any mining activities are commenced, the permit holder must obtain an environmental permit following the approval of an environmental impact study report by the National Office for Environment. The environmental impact study report sets out the environmental specifications of the project and includes:
- all environmental measures that must be completed by the permit holder during the life of the project until the definitive abandonment of the mine, including all restoration works;
- the financing and budget for mitigation and restoration measures; and
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provision for the mitigation and restoration works, along with any security or guarantee in favour of the state. This could take the form of funds deposited in a bank account in Madagascar in order to finance the restoration works. Use of the funds will be subject to certain conditions, such as the following:
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- The funds must be used exclusively for the restoration works;
- Further deposits must be made if necessary to cover any changes to the restoration works/measures; and
- The funds will be under the control of the Ministry of Mines, the Ministry of Environment and the National Office for Environment, which can use the funds to finance any restoration works as and when needed.
Before the effective abandonment of the mine, the permit holder must recruit an independent auditor duly approved by the National Office for Environment in order to conduct an audit of the performance and completion of all mitigation and restoration works foreseen in the environmental specifications. The audit report is subject to the approval of the National Office for Environment, which will issue the definitive environmental clearance (quitus environnemental) that releases the permit holder from all its environmental obligations.