Madagascar s Extractive Sector: current status and perspectives

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1 Ministry at the Presidency in charge of Mines and Petroleum (MPMP) Madagascar s Extractive Sector: current status and perspectives Presented by ZAFILAHY Ying Vah, Minister of Mines and Petroleum

2 Legal framework GENERAL OVERVIEW OF THE MINING SECTOR Mining Code Special regime for Large scale Investments in the Malagasy Sector (LGIM) Status Predominance of Artisanal and Small scale mining: 500, 000 full time and up to 1,000,000 seasonal jobs Few large scale mining companies: Ambatovy with an initial investments of 8 billions USD, RioTinto QMM with 931 millions USD, and Kraoma (national company). Impact to the economy 4.18% contribution to the GDP in 2014 We are expecting that the mining impact to the economy would reach the equivalent of 6 to 8% of GDP in couple of years

3 MINERAL POTENTIAL OF MADAGASCAR Data Coverage Improved geologic maps with support from the WorldBank Improved knowledge on mining assets Geologic maps available in various scales 1 : , 1 : , 1 : Updated mineral potentiality map

4 PRECIOUS STONES G E M S T O N E S

5 GOLD G O L D

6 FERROUS METALS F E R R O U S M E T A L S

7 MINING QUARRIES The mining quarry is the unit of occupation of the Malagasy sub-surface. PR - Exploration Permit 5 years renewable two times, 3 years each Transferable Environmental commitment plan PE Exploitation Permit 40 years - renewable for a further 20 years Transferable Environmental Impact Assessment prior any activities

8 COME TO VISIT MADAGASCAR AND INVEST IN OUR MINERAL SECTOR? Attractive mining code Securisation and guarantee of stability (mining code; LGIM*); Legal, tax and customs advantageous for investors who opted for LGIM The first African country to have set up the mining cadastre system (The Bureau de Cadastre Minier de Madagascar was established in 2000). A mining Business Center of 6600 m 2 was inaugurated by His Excellency Mister President of Republic of Madagascar on September 1 st, 2017 near to the Ivato international aeroport Candidate country to the EITI process Integrated projects being financed and implemented through the CBI

9 MADAGASCAR OIL AND GAS SECTOR: ACREAGE AND VENTURES

10 BASINS OVERVIEW Sedimentary basins representing a prospective exploration target with over 1,000,000 km2; 12 IOC operating in 16 petroleum blocks Much of the acreage is underexplored and opportunities are there No less than 05 active oil systems are present (proven by the Tsimiroro Heavy Oil and Bemolanga Tar Sands Deposits, as well as light oil and gas shows in drilled wells).

11 Madagascar: Petroleum Blocks Onshore exploration is more advanced than offshore. There are many unlicensed blocks offshore. Madagascar Oil is the first to exploit the Tsimiroro giant heavy oilfield

12 Data: 45 % of basin surface are covered by exploration data : Geophysics: 2D and 3D Seismic, Gravimetry, Magnetics ; Geochemistry 82 exploratory wells (53 % with oil and gas shows) 686 non-conventional oil wells (Tsimiroro and Bemolanga) Evaluation Reports available

13 Data (cont d): The Malagasy Authorities are working with Data Providers* to attract investment and to target the underdeveloped opportunities. Modern Multi-Client data covers much of the onshore & offshore and the unlicensed blocks. We hope that companies use these data to target opportunities and then come to invest in Madagascar *TGS, BGP, Spectrum, CGG.

14 Madagascar as a New Frontier More oil and gas has been discovered in East Africa in the last few years than in any other region in the world Source: Deloitte "the most dynamic recent developments in the African natural gas sector have been in East Africa, Source: Ernst & Young Significant gas reserves have been found in Mozambique and Tanzania, where LNG facilities are now been planned. Drilling will kick off in Ethiopia later this year, while Madagascar is believed to hold significant reserves Source: Jacinta Moran, Platts (7/12/12)

15 A FARSIGHTED AND INVESTMENT-FRIENDLY POLICY OBJECTIVES Develop an institutional framework suitable for the development of oil activities while preventing any conflict of interest. Develop legal and contractual framework guaranteeing the rights and security of investments of the oil companies as well as the State s interests. Manage efficiently the hydrocarbons revenue. Improve environmental management in sensitive or protected areas, through a specific regulatory framework. Ensure that oil activities contribute to national and local development; Build knowledge about potential of oil resources to achieve optimum production as well as its efficient management. Develop national expertise and capacity on hydrocarbons

16 THANK YOU FOR YOUR ATTENTION Thank you for your attention TRADE & INVESTMENT Realising FORUM Madagascar s -LONDON, investment SEPTEMBER 2017 in Mining sector