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Article

1 Feb 2014

Author:
Giles Crosse, Ethical Corporation

Is mineral-rich Madagascar open for business?

[Rio Tinto] wishes to be seen as an example of how partnership with government can provide a route to development for the island, with its huge resource base and pressing need for investment and jobs. But can Madagascar’s destitute indigenous population and a modern extractive business ever be successfully married?...Land grabbing in Madagascar...[a report] published in late 2013...analyses QMM and Rio Tinto’s work, and it’s not all good news. “The construction of Ehoala port, the pollution of rivers and the ecosystem changes caused by the mining activities have caused great harm and significantly reduced fishing,” the report states...Holloway [from Rio Tinto] argues: “The company recognises the importance of working with communities ... and is developing a strategy which will incorporate plans to deliver on [net positive impact], whilst working with communities and other stakeholders to improve natural resource management and promote long-term economic development.”...Ultimately, within the context of conflicting interests and struggles for power among national and local leaders and international investors, the engagement of local people and the transparency of projects’ finances are vital. [Refers to Daewoo.]