Madagascar marks a strategic turning point by lifting, on January 29, 2026, a 16-year moratorium on the granting of new mining permits (except for gold), thus freeing up more than 1,600 to 3,000 pending applications and inviting foreign investors to position themselves in a subsoil rich in nickel, cobalt, graphite, ilmenite, and rare earth elements. This decision, supported by a new mining code adopted in 2023-2024, aims to boost a sector representing more than 40% of national exports, while strengthening governance after a decade of speculation and administrative stagnation.
Context of the moratorium and reasons for its lifting
Established in 2010 amidst a political crisis, the moratorium aimed to clean up the mining cadastre, deemed corrupted by speculative titles and irregularities, hindering investment in a country with immense mining potential (the world’s second-largest producer of cobalt via Ambatovy, with strategic graphite and nickel reserves for the energy transition).
Following a complete overhaul of the legal framework (Law No. 2023-007), the Malagasy government is relaunching the allocation of permits for all substances except gold, whose informal artisanal sector (13 kg officially declared vs. massive actual production) requires stricter controls.
Key Figures and Immediate Opportunities
With approximately 1,650 applications recorded by the end of 2025 by the EITI (Extractive Industries Transparency Initiative), and potentially 3,000 pending permits, the Madagascar Mining Cadastre Bureau (BCMM) anticipates a maximum processing time of three months for the first allocations, which will be processed in the order they are received. Companies like Akora Resources have already submitted applications for iron ore, while flagship projects (mineral sands, nickel) are awaiting a cumulative investment approaching one billion dollars.
Priority Mining Sectors
The fundraising targets strategic minerals aligned with global “green” demand, excluding artisanal gold.
- Nickel and cobalt: expansion of Ambatovy (Sherritt, Japanese) and new deposits in Toliara; essential for EV batteries.
- Graphite and ilmenite: NextSource and Energy Fuels projects for lithium-ion anodes and TiO2 pigments; Madagascar a potential world leader.
- Rare earths and vanadium: exploration for permanent magnets and high-tech alloys, with Chinese and Australian interest
- Mineral sands (zircon, rutile): Fuel Americas is making progress on a $1 billion titanium project near Toliara.
- Iron ore: Akora and other junior mining companies are targeting Anosovolo for export to China/India.
Call for investment: incentives and guarantees
The Minister of Mines, Carl Andriamparany, is positioning Madagascar as a “stable and transparent” destination, with a modernized mining code (competitive taxation: 2% royalties, 25-year stability) and a mandatory Social Mining Fund for local communities. Investors benefit from a one-stop shop at the BCMM (Bureau Central des Mines de Madagascar) for updating their files and rigorous monitoring to prevent “dormant permits.”
Persistent Challenges Despite Momentum
Despite the enthusiasm, obstacles are hindering implementation: deficient logistical infrastructure (the port of Toamasina is congested, roads are in poor condition), community tensions over land expropriation, and the limited capacity of the National Environmental Assessment Office (ONE). Civil society warns of a risk of opacity if the 3,000 permits overwhelm assessment capacity, calling for UN partnerships for ESG audits.
Expected Economic Impacts for Madagascar
The mining sector, projected to grow by 4% in 2024, could double its export revenues (already USD 2-3 billion per year via Ambatovy) by 2030, generating 50,000 direct jobs and financing infrastructure (roads, energy). For Southern Africa, this strengthens Madagascar’s position as a “green” mining hub, competing with the DRC and South Africa, and attracting Australian, Canadian, and Chinese capital to the battery sector.
Advice for interested investors
- Steps: Prioritize updating your application with the BCMM (Antananarivo); conduct a feasibility study with the Social Mining Fund included.
- Local partners: Joint ventures with junior companies like Black Ranger or Akora to expedite approvals.
- ESG focus: Proactive environmental audits to secure permits and protect communities (famine 2024 reinforces vigilance).
- Timeframe: 6-12 months for initial permits; target Toliara/Anosovolo for optimal logistics.
- African opportunities: Synergies with the AfCFTA for refined exports to Mozambique/South Africa.
