AN AXIS OF DEVELOPMENT

Ambatovy Mines

The ore body at the Mine consists of two large, weathered lateritic nickel deposits located approximately 3 km apart named the “Ambatovy Deposit” and the “Analamay Deposit”. This pair constitutes one of the world’s biggest lateritic nickel reserves, covering an area of about 1,300 ha, with depths ranging between 20 and 100m.

“Due to the soft nature of the ore, no blasting is necessary,” Mark points out, “Ore will be surface-mined by

hydraulic excavators and delivered to the Ore Preparation Plant in articulated haulage trucks.”

The Ore Preparation Plant (OPP) is located at the Mine Site and

separates the soft lateritic soil from rock and waste material. The laterite is combined with water to produce a slurried ore, which is then pumped into the Pipeline that links the Mine to the Plant Site 220 km away.

“Maximizing the use of gravity, natural topography and minimizing the need for energy-intensive pumping facilities, has been a priority from the start,”

The far flung effects of this mining project is not reserved

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Ambatovy Mines has created an axis around which all industries upon this Indian Ocean island are going to benefit. 80 KM east of Antananarivo, Madagascar’s capital near the town of Moramana, costing at $5.5 billion and involving the strong arms of 12 major international partners this is the largest mining development to ever take place on the island and we were fortunate enough to have our mining correspondent Ian Charles-Romero speak with Mark Plamadon (spelling) President of Ambatovy Mine regarding this national first.

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Ambatovy Mines

for the precious minerals that are being mined for but goes far further. Prior to Ambatovy’s construction, Madagascar had little of the infrastructure required by such a project. In fact, construction activities at Ambatovy began with virtually no supporting roads or utilities making Ambatovy one of the largest “greenfield” mining projects currently underway anywhere in the world.

Included in the development, an entirely new 12 km railway line was built in parallel to an existing line to create the capacity needed to efficiently move commodities between the Port and the Plant Site. Madagascar’s railway company, Madarail, operates and maintains the new line and rolling stock.

An ammonia storage facility was constructed approximately mid-way between the Port and the Plant Site and a pipeline transports the ammonia between the two locations. Like all Ambatovy’s pipelines, this has been buried to avoid tampering and to ensure safety and reliability.

The scope of Ambatovy’s developments in this country for this project include, a coal-fired, steam and electricity generating station, including three units rated at 40 megawatts each, plants to produce oxygen, hydrogen, sulfuric acid, and hydrogen sulphide, a one of a kind water treatment plant, a full equipped, professional staffed medical clinic and residential and recreational facilities for staff.

“We’ve made substantial investment in transportation infrastructure that will benefit local communities for years

to come,” Mark explains, “Ambatovy’s investments include construction or upgrading of almost 100 km of public access roads. Some of these roads, which had been closed since 1969, now have bus services for the first time. As a result, 11 rural communities have easier access to markets and social services.”

An 11 km road that links the Plant Site and the Port was also built. This road by-passes Toamasina, helping to reduce traffic congestion in Madagascar’s most important port city and is also the location of a vocational training center, a clinic, a primary school, water points that were constructed alongside the rehabilitation of numerous public structures.

In collaboration with the Ministry of Labor, Ambatovy assisted with the renovation of the Atsinanana Regional and Moramanga District Employment Offices.

Having completed the final stage of construction, in early 2012 Ambatovy is entering into operational production. Aiming at producing over 60,000 tonnes of refined nickel, 5,600 tonnes of refined cobalt, and 210,000 tonnes of ammonium sulphate fertilizer annually and is expected to continue doing so for a following twenty eight years. Making nickel among Madagascar’s most important exports.

“For the moment production has just begun,” Mark reveals, “We’re handing out contracts for the next stages of development.”

Operations will begin at the Mine Site, where lateritic ore is extracted and transported by Pipeline to the Plant Site on Madagascar’s east coast. It then undergoes processing and complete refining.

To achieve this ground breaking development, Ambatovy has partnered with four companies – Sherritt International Corporation, SNC-Lavalin Incorporated from Canada, Sumitomo Corporation from Japan and Korea Resources Corporation from Korea.

“All partners are fully committed to transparent, sustainable, and responsible business practices,” Mark advocates.

Ambatovy is already a major contributor to Madagascar’s national prosperity and a source of revenue for its people and government. The positive implication of this organization on the country long term is vast with expectations for Ambatovy to generate important economic and social benefits. Payment of taxes and royalties, investment in infrastructure, job creation, local business development and technology transfer will all be valuable ingredients to the future. And let us not forget about the education and career opportunities it will develop.

As a responsible mining enterprise, Ambatovy is committed to upholding stringent environmental standards including the Equator Principles and the World Bank Group’s International Finance Corporation Performance Standards. To meet and surpass these requirements and commitments, they have developed a comprehensive approach to environmental management. This will ensure compliance, reduce residual impacts, and mitigate risks. Simultaneously, Ambatovy is implementing a world-class biodiversity offsets program.

Ultimately, “Ambatovy aims to be a leader in operational efficiency, health and safety, environmental management, and social engagement – while contributing to the long-term prosperity of Madagascar.”

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Written by Ian Charles-Romero

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