----This is meant to give only a brief introduction to the overall mining project----
The Rio Tinto Group, a UK-Australian based mining company has been studying a mining project near the town of Fort. Dauphin in Southeastern Madagascar for the past 17 years. The mining project, which is extracting ilmenite and small quantities of zircon, is called Qit Fer Madagascar Minerials S.A. (QMM) and is owned 80% by Rio Tinto with the possibility of the government owning 20%. The 20% ‘potential’ ownership depends on the availability of international funds—needing to find $117 million USD through international financial institutions to claim its full 20% capital share. The current shared ownership is only assured during the current ‘mine development phase,’ which expires at the point of first extraction (originally set for Dec. 2008), if funds can not be found/borrowed Rio Tinto would become the sole owner of the project.
Its been estimated that the mine could last 50-60 years extracting grains of ilmenite and small quantities of zircon from the mineral sand deposits near Ft. Dauphin. Mining exploration efforts have confirmed ilmenite and zircon in four sectors (villages)—the Petriky sector, the Mandena sector, and the St. Luce sector. Together they host reserves which could sustain mining operations for more than 60 years at a rate of 750,000 tones of ilmenite a year.
The Mining Process:
1) Removing vegetation cover (storing the humus layer if and when applicable).
2) Extracting sand by dredging, requiring the creation of artificial lakes.
3) Mechanically separating the heavy metals (about 5%) and returning non-heavy metals(about 95%) back to mining site.
4) Separating ilmenite and zircon from other heavy mental.
5) Returning other heavy metals to the mining site.
6) Restoration of mined areas—replanting using tree species already commonly planted throughout Madagascar. (the process will require the removal and loss of extremely rare fragments of littoral coastal forest).
The project overall is the largest foreign investment in Maagascar’s history and is the first in a series of natural resource extraction projects that the country is developing with the international mining sector and the World Bank. This project has been labeled a ‘flagship,’ raising the bar of the international mining community. Is this true? Or just another exploitation of national resources at the expense of a desperate country and its people? …You Decide…. (I encourage you to research on your own and not to interpret anything written here as complete fact).
Good Community relations have always been a priority of the QMM project. A social and Enviornmental Impact Assessment started the project back in 1990 and concluded in 2001. (this includes the establishment of two ‘protected’ fragments of littoral forest—in Mandena and St. Luce). QMM’s early community relations strategy was inspired by Rio Tinto’s (the parent company) policy—As expressed in the document ‘the way we work.’ The document uses language such as ‘mutual respect,’ ‘active and reciprocal partnerships,’ and ‘long term commitment to the communities in which QMM is present.’
If you are saying, ‘That doesn’t sound much like a mining company.’ I found this info awhile back in Jared Diamond’s book ‘‘Clasped’’
Papua New Guinea’s Bougainville Island Copper Mine
The Bougainville Island Copper Mine in Papua New Guinea was the countries largest enterprise and biggest earner of foreign exchange, and one of the largest copper mines in the world.
The mine was faced with a problem, the same problem all mining projects face—what to do with tailings or unused/unneeded material, started dumping its waste directly into a tributary of the Jaba River (a major source of water for the people). This caused monumental environmental impacts at the expense of the New Guinean people. The Government failed to resolve the situation, thus outraged and frustrated inhabitants revolted, triggering a civil war that cost thousands of lives and nearly tore apart the nation of Papua New Guinea.
Fifteen years since the outbreak of civil unrest, peace has still not fully been restored on Bougainville. The mine still remains closed (officially closing its doors in 1989) at the expense of owners and lenders (including Bank of America, US Export/ Import Bank, and Australian and Japanese lenders).
In 1990 on the heels of this disaster, top executives of some of the world’s largest international mining companies became concerned about the future of their Industry (afraid that they had lost all ‘social license to operate’). They formed an initiative appropriately named the ‘Mining Minerals and Sustainable Development (MSD) project and launched a series of studies on sustainable mining and enlisted a well-known environmentalist as its director—the President of the National Wildlife Federation at the time. They also attempted without much success to involve the broader environmental community, which refused out of pure disgust from previous mining practices (i.e. Bougainville). In 2002, the study arrived at a series of recommendations (as mandated) at which point most of the mining companies involved declined to implement any recommendations.
The exceptions is the mining giant Rio Tinto, which moved ahead on some of the recommendations, which were backed by a supportive CEO and shareholders—still scarred by the companies experience of owning the Bougainville Island Copper Mine in New Guinea.
Of course business advantages exist when a company is seen as an industry leader in ‘social responsibility.’
The Borax mine in California’s Death Valley is one of the most cleanly operated mines in the U.S. (owned by Rio Tinto).
When Tiffany and Co. began stressing environmental considerations in selecting a mining company as a key gold supplier, they went with Rio Tinto. Tiffany and Company was eager to fend off the negative attention of protesters outside of their jewelry stores protesting the use of cyanide (linked to clasping fisheries) in the gold mining process
The ilmentite deposit here in Madagascar is located in the Anosy region of south-eastern Madagascar (I speak/learned the Anosy dialect). It’s a region that has been historically plagued with poverty, isolation, and according to who you speak with—political/administrative neglect. 82% of the people live in poverty (the national average is around 74%). The regional economy is based on agriculture (sisal and rice are the ‘staple’ crops).
A word on Sisal production.
(from the Bradt Madagascar Guide)
The crop was introduced in the early 1900s with the first exports in 1922 (with 42 tons going to France). By 1950 production reached 3,080 tons annually mainly because of its use in carpet production. Requiring the clearing of endemic forest, to make room for sisal production. In 1952 a synthetic substitute was developed in the US and the market in Madagascar clasped.
But in the 1990’s the market resurged exporting 5,000 tones in 2005—putting more forest at risk (old land was converted to other uses—thus new land needed to be found). Why?
Ironically ‘green’ consumers in the EU and USA demanding biodegradable packaging, which is made from sisal.
Even rice production is weak and the region, which needs to import 12,000 tons to meet its yearly demand.
74% of school aged children do not attend school.
When I recently asked Angelo who is 14 years old, ‘why doesn’t go to school?’ He told me that the teacher was mean and laughed (I laughed too, because this wasn’t true—he is a good friend and well respected within the community). It makes sense…Why go to School? An office/job or any future other than fishing seems so abstract and unattainable. With the mining project underway and the rapid development to come, Angelo and others like him will surely be left behind.
What is Ilmenite?
It’s been said that the project is dependant on China’s growth, which is generating much of the demand for both ilmenite and zirconium. The ilmenite is used in making a white dye that is used to give the white pigment found in plastic bags, paint, and skin lotions.
According to an article I found with 2006 figures, ilmenite stood at $75-85 USD per-ton. Zirconium was priced at $800 USD per ton. But the ilmenite will not be going straight to the open market. A special agreement allows Qit Fir (Rio Tinto) to have exclusive rights to buy the ilmenite at market price and ship it to its smelting plant in Canada, where it will be converted into titanium chloride (priced at $413-550 USD per ton in 2006).
A lot of tension exists between the mining company and my partnering NGO (the relationship between the two was even mentioned in a report by the WWF in 2006). My NGO, was created in 1994 with the intension of finding ‘developmental alternatives’ to the mining project.
When I recently asked Sosony ‘Why he didn’t like the mining company?’
He said it was ‘bad and would damage the soil.’
He than sat quietly in a daze for a brief moment, finally letting out a sigh with the word ‘unwise.’
Many in the village don’t hold this same view and are supportive of the QMM project.
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