Madagascar has lifted a long-standing suspension on the issuance of mining permits, ending a freeze that has been in place since 2010 and reopening the sector to new investment, the government said this week.
The decision was approved by the Council of Ministers on Jan. 27 and authorises the resumption of mining title approvals across the country. The move brings to a close a 16-year halt imposed during a period of political transition, when authorities cited widespread speculation in mining permits as justification for the suspension.
The reopening follows the adoption of a revised mining code in 2023, part of a broader effort by the government to restore oversight of the sector and improve transparency in the management of mining titles.
According to Madagascar’s latest report under the Extractive Industries Transparency Initiative (EITI), published in late December, around 1,650 applications for mining permits were pending with the mining administration at the time of reporting. Authorities have not yet provided a timeline for reviewing or processing those applications.
The prolonged freeze had weighed heavily on exploration activity, with permits often remaining inactive or unresolved for years. Officials say the new framework aims to address longstanding weaknesses in the mining cadastre, which have limited the development of the country’s mineral potential.
Madagascar is endowed with a range of strategic minerals, including nickel, cobalt, graphite and rare earth elements, all of which are in growing demand globally due to their use in batteries and clean energy technologies. Despite this, the mining sector accounts for less than 5% of the country’s gross domestic product, according to official figures.
The government says the lifting of the suspension is intended to provide greater legal clarity for investors and increase the contribution of mining to the economy. The 2023 mining code seeks to tighten control over permit allocation, reduce speculative behaviour and ensure that licensed projects advance to exploration and production.
Several companies are expected to benefit from the reopening, including firms that have been waiting years for regulatory approval. Among them is Harena Rare Earths, which is seeking to develop a rare earths project in the country.
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Analysts say the challenge for Madagascar will be translating regulatory reform into effective administration, particularly given capacity constraints within the mining authority. Clearing the backlog of applications and enforcing timelines for permit activity will be key to restoring investor confidence.
Madagascar joins a number of African countries attempting to rebalance state control and investor attractiveness in the mining sector amid rising global competition for critical minerals. For investors, the end of the permit freeze marks a significant policy shift, though its impact will depend on how swiftly and consistently the new rules are implemented.
