Investors Race into Madagascar as 16-Year Mining Ban is Lifted
The Madagascar Council of Ministers, chaired by the President of the Republic, announced late Thursday that new mining licences will once again be granted, ending a suspension imposed in 2010 to address governance weaknesses and modernise the country’s legal framework.
However, restrictions on gold mining permits will remain in place, reflecting ongoing regulatory challenges in a sector long dominated by informal activity.
“Mining permits are an essential working tool that allow operators and investors to operate legally,” Carl Andriamparany, Madagascar’s Minister of Mines, said at a press conference. “That is why we have decided to lift the suspension on issuing permits.”
The decade-long moratorium was initially introduced by the post-crisis transitional government to reform weak mining governance, address corruption risks, resolve overlapping permits, and modernise Madagascar’s outdated legal framework.
What was originally conceived as a temporary measure persisted through successive administrations, constrained by political instability and slow institutional reform.
Over time, more than 1,600 permit applications accumulated, limiting exploration and investment in one of Africa’s most mineral-rich jurisdictions.
The urgency to reopen the mining sector increased following widespread unrest in late 2025, between September 25 and October 14.
Mass youth-led protests erupted over chronic water and power shortages, corruption, and poverty, leading to the removal of both the Prime Minister and the President.
Colonel Michaël Randrianirina now serves as interim President and Chairman of the Council of the Presidency for the Re-Foundation of the Republic.
The new government faces mounting pressure to improve living standards and stabilise the economy.
The suspension of new mining permits stalled several projects and delayed investment across Madagascar. The lifting of the moratorium now reopens opportunities for investors and development initiatives.
Among the projects affected was Red Island Minerals’ Sakoa Coal Project. Development of the Sakoa coal field has been on hold since at least 2012 due to political disputes and permit-related challenges.
In 2012, PTT Asia Pacific Mining, a subsidiary of Thailand’s PTT, acquired full ownership of Red Island Minerals with the intention of advancing the project. However, the transitional government at the time blocked permit renewals, and there has been little progress toward active mining since.
Similarly, the Toliara Project, operated by U.S.-based Energy Fuels, produces titanium and zirconium minerals, including ilmenite, rutile, and zircon. Development was paused in 2019 due to fiscal and operational negotiations, which also put community programs on hold.
The resumption of permit issuance will allow developers to restart technical, environmental, and social work in preparation for a Financial Investment Decision (FID) expected in early 2026.
While other mineral sectors are reopening, gold remains tightly controlled. The government maintained the moratorium, citing weak oversight and discrepancies between official production data and widespread artisanal activity.
“According to official statistics for the past year … the volume of gold declared amounts to just over 13 kilograms,” Andriamparany said, calling the figure “negligible” relative to the scale of mining nationwide.
“In light of this situation, the government has acknowledged our current inability to effectively regulate the sector and establish a rigorous monitoring system.” He added.
