Madagascar has announced the lifting of a 16-year moratorium on new mining permits for most minerals, signaling a major shift in policy to attract investment and unlock the country’s mineral wealth, while maintaining a suspension on gold permits amid regulatory concerns.
The suspension, imposed in 2010, aimed to allow the government to review its mining governance framework and update legal structures governing mineral extraction. For over a decade, the ban prevented new licences from being issued, limiting the entry of fresh investors into the sector.
“Mining permits are an essential working tool that allows operators and investors to operate legally,” Madagascar’s Minister of Mines, Carl Andriamparany, told reporters. “That is why we have decided to lift the suspension on issuing permits for all minerals except gold.”
The mining sector is a cornerstone of Madagascar’s economy, generating a significant portion of export earnings through projects involving nickel, cobalt, graphite, and ilmenite. The Ambatovy nickel-cobalt operation remains the country’s flagship mining project, attracting substantial foreign investment and serving as a major contributor to the national trade balance.
As of 2023, the mining administration had a backlog of some 1,650 applications for permits, according to the country’s Extractive Industries Transparency Initiative (EITI) report released at the end of 2025. Lifting the ban is expected to clear administrative bottlenecks and encourage new entrants in both large-scale and medium-scale mining ventures.
However, the government is keeping the gold sector under a moratorium due to concerns about regulatory oversight and inconsistencies in reported production. Official figures for gold output in the previous year amounted to just over 13 kilograms, which officials described as “negligible” compared with the scale of artisanal and informal mining 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,” Minister Andriamparany said, emphasizing the need to ensure that gold extraction does not fuel illegal activity or environmental degradation.
Industry analysts said the reopening of the mining permit process for other minerals is likely to boost investor confidence, particularly in nickel, cobalt, and graphite projects, which are critical to global supply chains for batteries, electric vehicles, and renewable energy technologies.
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“Madagascar has significant untapped mineral potential,” said Jean-Claude Rabe, a regional mining analyst. “Allowing investors to secure new permits outside of gold will help diversify the country’s export base, generate jobs, and stimulate infrastructure development, but the success will depend on clear regulation and transparent administration.”
The move also aligns with Madagascar’s broader economic agenda to strengthen foreign direct investment and position the country as a stable destination for resource extraction. The government has indicated that it plans to modernize its mining codes, improve environmental oversight, and enforce stricter reporting standards to ensure responsible investment practices.
Despite the exclusion of gold, companies operating in other mineral sectors have welcomed the policy change. “This is a positive signal to investors that Madagascar is serious about providing a predictable legal environment for mining,” said Pierre Andrianasolo, CEO of a local mining consultancy.
The decision comes at a time when global demand for strategic minerals is rising, fueled by the transition to green energy technologies and the increasing need for battery-grade metals. By opening new avenues for investment, Madagascar hopes to capture a larger share of this global market while addressing domestic economic priorities such as job creation, infrastructure, and industrial development.
The government plans to start processing permit applications immediately, with the objective of streamlining approvals and providing clarity to investors. While gold remains on hold, officials indicated that the sector could be revisited once regulatory and monitoring mechanisms are strengthened, potentially unlocking a significant portion of the country’s artisanal mining activity under formal oversight.
