Madagascar Reopens Mining Permits as It Bets on a Younger, Growth‑Driven Economy

Madagascar has taken a decisive step to reset its mining sector, lifting a 16‑year moratorium on new mining permits for most minerals while keeping restrictions on gold firmly in place. The move signals a calculated push to unlock investment, jobs, and industrial growth in an economy shaped by one of Africa’s youngest populations.

The government announced late Thursday that the suspension on new mining licences — imposed in 2010 to reform governance and strengthen the legal framework — has now been lifted for minerals excluding gold. The decision reopens the door to fresh investment in a sector that remains central to Madagascar’s export earnings and long‑term development strategy.

Mining as an Engine for a Young Nation

With a rapidly growing and youthful population, Madagascar faces mounting pressure to create employment, skills, and sustainable economic pathways. Mining already plays a critical role, with key exports including nickel, cobalt, graphite, and ilmenite — all minerals increasingly important to global clean‑energy and manufacturing supply chains.

Speaking at a press conference in Antananarivo, Carl Andriamparany, Madagascar’s Minister of Mines, framed the decision as a practical necessity.

“A mining permit is an essential working tool that allows operators and investors to operate legally,” he said. “That is why we have decided to lift the suspension on issuing permits.”

As of 2023, around 1,650 mining permit applications were pending, according to the country’s most recent Extractive Industries Transparency Initiative (EITI) report published at the end of 2025. Clearing this backlog is expected to accelerate project development, attract capital, and expand formal employment opportunities — particularly for young Malagasy workers.

Gold Remains Off‑Limits

While most minerals are back on the table, the government has deliberately maintained the moratorium on gold mining permits. Authorities point to deep structural challenges in regulating the sector, particularly the gap between declared production and widespread artisanal mining.

According to official figures, just over 13 kilograms of gold were formally declared last year — a number the government described as negligible given the scale of mining activity across the country.

“In light of this situation, the government has acknowledged our current inability to effectively regulate the sector and establish a rigorous monitoring system,” Andriamparany said, underscoring a preference for control over short‑term revenue.

Flagship Projects and Investor Confidence

Madagascar’s mining ambitions are anchored by large‑scale operations such as the Ambatovy nickel‑cobalt project, the country’s flagship mine and one of its biggest sources of foreign exchange. The reopening of permits is expected to complement such projects by encouraging exploration, downstream activity, and diversification beyond a handful of mega‑investments.

The timing also aligns with rising global demand for battery and industrial minerals, offering Madagascar an opportunity to position itself more competitively in international supply chains.

A Strategic Reset, Not a Free‑For‑All

Crucially, the government has framed the policy shift not as deregulation, but as a controlled reopening grounded in stronger oversight. By excluding gold and acknowledging regulatory limits, authorities are signaling a more disciplined approach — one aimed at long‑term stability rather than rapid extraction.

For a country where the majority of citizens are under 25, the stakes are high. Mining policy is no longer just about exports or foreign investors; it is about whether Madagascar can convert natural resource wealth into jobs, skills, and economic momentum for a young generation looking for opportunity at home.