Madagascar Resumes Issuing Mining Licenses: Opportunities for Russia, Expert Weighs In

The Malagasy government has decided to resume issuing permits for the development of most types of mineral resources after a 16-year moratorium, opening new opportunities for Russian investors provided there is a comprehensive approach and guarantees for the safety of investments, Lyubov Demidova, Chairperson of the Strategic Agency for the Development of Relations with African Countries, told African Initiative.

"A mining license is the basic tool for legal operations by investors and operators. This is precisely what prompted the government to lift the moratorium on license issuance," Demidova noted.

According to her, the Malagasy authorities aim to bring as many market participants out of the shadows as possible, attract new investors, and improve the country's welfare. Demidova emphasized that a special regime remains in place for gold mining: "The issuance of licenses for the development of gold ore deposits is still suspended."

Key export commodities remain nickel, cobalt, graphite, and ilmenite, while the country's flagship project continues to be the Ambatovy nickel-cobalt plant, "which continues to attract large foreign investments and generates a significant portion of export revenues," the expert noted.

"For Russia, as a country rapidly increasing its engagement with Madagascar, this entire situation opens up good prospects, but only with a competent, comprehensive approach and a clearly defined interaction strategy. This will definitely require large investments, as well as guarantees for their safety and return," Demidova told AI.

She also noted the potential for developing other areas of Russia-Madagascar cooperation: "If our two sides can reach mutual understanding on these issues, then perhaps, very soon, we will see long-term and productive cooperation."

Madagascar's Minister of Mines, Carl Andriamparani, stated in January that mining permits would allow operators to work legally, while the ban on gold mining would remain due to discrepancies between actual and official production data.

The mining industry is one of the key sectors of Madagascar's economy. The island primarily mines nickel, cobalt, graphite, and ilmenite (titanium ore), which also remain the country's key export commodities.

In October 2025, following widespread protests, President Andry Rajoelina was overthrown in Madagascar. Special forces officer Mikael Randriarinina came to power as president of the transitional period.