Madagascar has formally lifted a 16 year suspension on the issuance of new mining permits for most minerals, while maintaining restrictions on gold, in a move that signals a recalibration of state oversight within one of Africa’s long standing extractive economies. The decision, announced by the Ministry of Mines late last week, brings to an end a moratorium that has been in place since 2010 and was originally introduced to allow for a comprehensive review of mining governance, licensing systems and the legal framework regulating the sector.
Mining occupies a central place in Madagascar’s economy and its external trade profile. The country is a globally significant producer of nickel, cobalt, graphite and ilmenite, minerals that are increasingly important to global industrial supply chains and energy transition technologies. The Ambatovy nickel cobalt project, operated through a large scale public private partnership, remains the most prominent mining investment in the country and has for more than a decade accounted for a substantial share of export revenues and fiscal contributions. Further details on the project are available through Ambatovy Minerals.
Speaking at a press briefing, Mines Minister Carl Andriamparany stated that the resumption of permit issuance reflects the state’s recognition that licensing is a foundational instrument for legal and transparent mining activity. He noted that the prolonged suspension had constrained both domestic operators and foreign investors, contributing to regulatory uncertainty in a sector that is otherwise structurally important to national development.
According to Madagascar’s most recent Extractive Industries Transparency Initiative report, published at the end of 2025, approximately 1,650 applications for mining permits remained pending with the administration as of 2023. The report, accessible through the Extractive Industries Transparency Initiative Madagascar country page, highlights persistent capacity challenges within regulatory institutions, as well as the economic significance of extractive revenues at both national and sub national levels.
Despite the broader reopening of the permitting process, the government has opted to maintain the moratorium on gold mining licences. Officials have attributed this decision to deep inconsistencies between officially declared gold output and the scale of artisanal and small scale mining activity observed across the country. Government data indicate that declared gold production for the most recent year amounted to just over 13 kilograms, a figure widely regarded as misaligned with on the ground realities.
In acknowledging these discrepancies, the Ministry of Mines has emphasised the current limitations of the state’s monitoring and enforcement systems in the gold sector. The continued suspension is therefore framed as a regulatory pause rather than a policy adjustment, aimed at strengthening traceability, formalisation and oversight before additional licences are issued.
From a broader African perspective, Madagascar’s approach reflects a pattern seen across the continent, where governments seek to balance investment attraction with sovereignty over natural resources, environmental stewardship and the livelihoods of artisanal miners. Rather than a simple liberalisation, the partial lifting of the moratorium underscores the differentiated treatment of minerals based on governance risk, market dynamics and institutional readiness.
As Madagascar reopens its mining cadastre to new applications, attention will focus on how effectively the state manages the backlog of permits, integrates transparency commitments and addresses longstanding challenges in the gold sector. The outcome will have implications not only for investors but also for communities whose social and economic lives are closely intertwined with the country’s mineral wealth.
