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The second phase of development policy support, estimated at US$100 million, aims to stabilize Madagascar’s public finances and economy and respond to shocks and crises. The deadline for the adoption of the implementing decree for the Mining Code is set for October this year. A deadline set by the reform calendar within the framework of the IMF’s FEC and FRD programs.
What reforms are foreseen in the Madagascar Mining Code Decree?
Good governance and structural reforms. But this also includes regulations that are more capable of addressing social and environmental impacts in line with international good practice.
The mining industry must take into account the revised and restructured regulations when adopting the new Mining Code (previous code from 2005). In particular, the regulations on special duties and taxes on mining products, as well as the management of mining rebates in various regions to curb informal activities. The updated Mining Code has a greater focus on international standards that are required to meet the actual situation.
The first phase of World Bank development policy support funds were disbursed in June 2023The second project therefore awaits the issuance of the decree implementing the Mining Code in early October.
Last May, Mining Minister Herindrainy Rakotomalala announced that the draft decree implementing the Mining Act had entered its final stages.
Here are some reminders of priorities
First, the financial reform of the Social and Community Mining Fund. Also, the distribution rates of the DTSPM or duties and taxes on mining products and the method of collection (gold sector, large-scale mines and artisanal mining).
On the regulatory level, the final draft of the Mining Code provides for mining permits, a fossil and quarry regime, a gold regime, and a mining cadastral clearance plan.
Over the past few months, Public authorities and private mining operators debate the development of the new 2024 Mining Code, whose public consultation takes place at the Ivato Mining Business Center..
Scope of the DPO (Development Policy Operation) for a sustainable economy in the mining sector
The DPO budget support agreement signed between Madagascar and the World Bank in 2023 aims to strengthen reforms in the mining sector, just like other key energy sectors. In the mining sector, the new decree of the national authorities must address the following points:
- Ensure transparent, accountable and effective management of public resources and policies at all public institutional levels;
- Simplify administrative procedures, reduce risks and uncertainties, and provide a favorable, more attractive and secure environment for investors;
- Maintain public finances stability and prudently manage expenditure, revenue and public debt.
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