This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 2/28/2017

Overview                                                                                       
Madagascar has significant potential for further exploration and exploitation in the mining sector from western investors.  Currently, three large operations export nickel, cobalt, ilmenite and chromium, and a number of other deposits have been explored and could be developed.  These include ilmenite, coal, graphite, and iron ore deposits, among many others.

Units: USD thousands
 2013201420152016
Total Market SizeN/AN/AN/AN/A
Total Local ProductionN/AN/AN/AN/A
Total Exports117,08498,08031,487N/A
Total Imports154816N/A
Imports from the U.S.010N/A
Exchange Rate: 1 USD2,308.322,414.812,738.88N/A
Total Market Size= (Total Local Production + Total Imports) - (Total Exports)
Data Sources:
Total Local Production: N/A
Total Exports: Malagasy Customs (FOB)
Total Imports: Malagasy Customs (CIF)
Imports from U.S.: Malagasy Customs (CIF)
Products covered are within HTS Chapters 2601, 2602, 2603, 2604, 2605, 2606, 2607, 2608, 2609, 2610, 2611, 2612, 2614, 2615, 2616 and 2617 that are chromium, titanium, iron, manganese, nickel, cobalt, aluminum, lead, zinc, tin, tungsten, uranium, thorium, niobium, tantalum, vanadium, zirconium ores, precious stones ores and their relative concentrates.  Madagascar has rich deposits of a wide array of precious and semi-precious stones and metals.  Exports are heavily underestimated officially and illegal exports of gold, and precious stones and metals are often reported in the media. 
 

Sub-Sector Best Prospects                                                             

 
Rock Drills, Construction and Surface Mining Type, Manufacturing
 
Although the construction phases of the country’s major mining operations are winding down, future large scale development of other identified commercial deposits in the country is expected to lead to a rise in imports of heavy machines and special vehicles related to extraction activities, particularly with passage of a new mining code expected this year.   
Units: USD thousands
 201320142015
(Jan-May)		2016
(estimated)
Total Market SizeN/AN/AN/AN/A
Total Local ProductionN/AN/AN/AN/A
Total Exports4724,1092,821N/A
Total Imports25,12918,4743,105N/A
Imports from the U.S.2,7493,413254N/A
Exchange Rate: 1 USD2,308.322,414.812,738.88N/A
Total Market Size= (Total Local Production + Total Imports) - (Total Exports)
Data Sources:
Total Local Production: N/A
Total Exports: Malagasy Customs (FOB)
Total Imports: Malagasy Customs (CIF)
Imports from U.S.: Malagasy Customs (CIF)
Products covered are within HTS Chapters 842831, 842832, 842833, 842839, 842840, 842890, 842911, 842919, 842920, 842930, 842940, 842951, 842952, 842959, 843010, 843031, 843039, 843041, 843049, 843050, 843061, 843069, 843131, 843139, 843141, 843142 and 843143 which are backhoes manufacturing, buckets and excavating machines etc.
 
U.S. market share of these imports increased gradually from 2013 to 2014, and U.S. exporters dominated the market in the overall HTS 84 category, including boilers and other machinery.  The main competitors for U.S. exports in these categories come from China, France and Germany.

Opportunities                                                                               

U.S. firms have to date not been very involved in investment or exploration in the mining sector.  The dominant player in this industry—and also the largest FDI in Madagascar—is Ambatovy, a USD 8 billion dollar mining enterprise producing primarily laterite nickel and cobalt, in addition to ammonium sulphate.  The project is a joint Canadian, Japanese and South Korean venture.  Rio Tinto/QMM, a USD 1 billion dollar project of ilmenite/titanium and related products in southern Ft. Dauphin, is the second largest project.  Under the previous coup government, mining companies found it difficult to obtain new permits, particularly those for exploration.  The new government has promised to amend the permitting process, though has not yet made changes.  
 
Resources                                                                        
For additional information on investment and export opportunities in the mining sector, potential investors or exporters can contact the EDBM, the Chamber of Mines, the Ministry of Mines and Petroleum, OMNIS, the American Chamber of Commerce or other business associations (see Chapter 9).  Please also do not hesitate to contact the Embassy’s Political-Economic Section for more information.

 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.