To set up a mining business in Madagascar, the new Mining Code (Loi n° 2023- 007) outlines a descriptive process involving various permits, obligations, and administrative bodies.

The main goal of the new code is to strengthen the role of the state and Decentralized Territorial Collectivities (CTD), and ensure sustainable management of natural resources, including valuing minerals while preserving the environment and considering future generations.

Eligibility to Operate

To acquire and hold mining permits or authorizations, an entity must be a physical person of Malagasy nationality or a legal entity under Malagasy law.

Legal entities must have at least one legal representative residing in Madagascar.

Individuals or corporate directors whose permits have been withdrawn are ineligible for three years.

Types of Mining Permits and Authorizations

The Mining Code of Madagascar defines several types of permits and authorizations depending on the nature and scale of the mining activities.

First, there are Mining Permits (Permis Miniers), which include different categories.

• The Research Permit (Permis de Recherche- PR) allows companies or individuals to explore and study areas for potential mineral resources.
• The Exploitation Permit (Permis d’Exploitation- PE) gives the right to actually extract minerals once a deposit has been confirmed.
• There is also a special permit called Permit Reserved for Artisanal Operators (Permis Réservé aux Exploitants Artisanaux – PREA), designed specifically for small-scale miners using simple methods.

Besides these, the code includes other authorizations.

• The Mining Authorization for Artisanal Exploitation (Autorisation Minière d’Exploitation Artisanale- AMEA) allows individuals to carry out artisanal mining legally. Each authorization covers up to 4 mining squares. It is valid for six months and can be renewed once for another six months. To obtain the authorization, applicants must submit an environmental commitment plan. The production can be legally sold. During its validity, the AMEA can be converted into a Permit Reserved for Artisanal Operators (PREA).
• There is also a specific authorization called “kara-bolamena” (gold card), which applies to gold panning activities. This is an individual authorization for gold panning valid for one year, issued by the Commune. It’s not a mining permit and is non-transferable.

Overview of Mining Permits in Madagascar

Aspect	Mining permits	Artisanal exploitation authorisation (AMEA)
Scale of operations	Large-scale or semi-industrial	Small-scale
Extraction methods	Industrial and semi-industrial techniques	Manual, low-technology methods
Legal rights	Includes exploration, resource assessment, extraction, processing, and commercial sales	Limited to extraction and surface collection
Investment level	Significant capital required	Minimal investment

The Process of Obtaining a Mining Permit 

PR to PE Path for Commercial Operations

The process often begins with an exclusive reservation, followed by research, and then potentially exploitation.

Step 1: Reserving an Exclusive Exploration Area (AERP)

The first step is to apply for an authorization that gives the right to explore a specific area for minerals.

This authorization is called Exclusive Perimeter Reservation Authorization (AERP). It allows the holder to search for minerals within a limited zone that cannot be larger than 2,500 square kilometers.

The request is made to the national mining office (Bureau du Cadastre Minier de Madagascar – BCMM) and involves paying a fee based on the size of the area. 

However, not all areas are available: protected zones, areas already covered by mining permits, or zones under other applications are excluded.

The authorization is valid for only three months and cannot be renewed. It also cannot be transferred or sold to someone else.

Before the authorization expires, the holder can apply for a proper mining permit, either a research permit or an artisanal operator’s permit, to continue activities in the area.

Step 2: Obtaining a Research Permit (PR)

Once the exploration area is secured, the next step is to apply for a Research Permit (PR).    

This permit gives the holder exclusive rights to search and study mineral resources within the selected zone. It also allows the construction of a small pilot plant for testing.

The application is submitted to the BCMM, using a standard form. If the applicant previously held an AERP, it must be attached to the request. Applicants must also submit a work program and a financial plan to prove they have the technical and financial capacity to carry out the research.

Applications are processed on a “first come, first served” basis, unless the area was awarded through a tender.

The Ministry of Mines makes a decision within sixty working days, as long as all documents are complete and the applicant meets the eligibility conditions. If rejected, the refusal must be justified and notified within the same period.

A research permit is valid for five years. It can be renewed twice, each time for three more years. However, at each renewal, the permit holder must reduce the size of the area by at least 25%, choosing which parts to keep as long as the remaining area stays continuous. The maximum size allowed for a research permit is 5,000 square kilometers.

There are financial obligations tied to this permit. Holders must invest a minimum amount in research activities, calculated based on a fixed sum and the size of the area.

If these requirements are not met, the permit area may be reduced further when renewed.

While holding a PR, the company can use extracted minerals for lab tests, market samples, or industrial trials. 

The permit also gives the right to apply later for an exploitation permit (PE), or an artisanal operator’s permit (PREA) if the owner of the PR has malagasy nationality. 

During the entire period, no other mining rights can be granted within the permitted area.

Step 3: Obtaining an Exploitation Permit (PE)

The Exploitation Permit (PE) gives the holder the exclusive right to extract and process mineral resources within a defined area. It also allows ongoing prospecting and research within the same perimeter, following the rules set out in the official Mining Terms and Conditions (Cahier des Charges Minières – CCM).

A PE can be obtained by converting a valid research permit (PR) or an artisanal operator’s permit (PREA).

When applying to convert a PR into a PE, the applicant must submit a standard form, a pre-feasibility study report, and regular activity reports from the research phase. For permit renewals, a full feasibility study is required.

The exploitation permit is valid for 25 years. It can be renewed once for an additional 15 years, while further renewals are possible but subject to specific conditions. The maximum area allowed under a PE is 500 square kilometers.

A PE usually covers up to five mineral substances, but this can be extended to a maximum of ten if new resources are discovered. In such cases, the company must update its mining plan and submit additional environmental documents for approval.

The permit grants the right to build necessary infrastructure, use local wood and water (with the landowner’s agreement), and remove quarry materials if needed for mining activities, provided fair compensation is paid to the landowner.

Integrated mining companies are also allowed to transport, concentrate, process, refine, and transform the minerals entirely within Madagascar.

To ensure transparency, integrated companies must keep separate financial records for extraction, processing, and sales activities.

Obtaining an Artisanal Exploitation Permit (PREA)

The Permit Reserved for Artisanal Operators (PREA) allows Malagasy individuals or groups to carry out prospecting, research, and small-scale mining using artisanal methods or light mechanical equipment. This permit is specifically designed to support local operators.

An AMEA holder can apply to convert their authorization into a PREA. Once granted, the PREA is valid for eight years.

It can be renewed twice, each time for four additional years. For any further renewal beyond these periods, the permit holder must prove the presence of a deposit that can still be profitably exploited.

The maximum area allowed under a PREA is 50 square kilometers. This permit gives local operators more time and space to develop small-scale mining projects while remaining within the artisanal framework.

Key Administrative Bodies and Governance

Several key institutions manage and oversee the mining sector in Madagascar, including:

Bureau du Cadastre Minier de Madagascar (BCMM): Responsible for managing mining permit files from application to expiration, maintaining an up-to-date national mining cadastre accessible to the public, and registering all changes affecting permits.

Ministère des Mines (Ministry of Mines): The public entity representing the State for the administration and governance of mineral resources. It is responsible for granting permits, evaluating technical and financial capacities, enforcing compliance, and defining technical and financial criteria.

Centrale de l’Or de Madagascar (COM): A national public establishment under the Ministry of Mines, responsible for the formalization, monitoring, database management, and regulation of gold activities, including melting and official hallmarking. It issues “Carte de Collecteur” for gold collection.

Comité National des Mines (CNM): A body for dialogue, facilitation, consultation, and conciliation between the Administration, CTDs, and the private mining sector. It advises on laws and decrees, supports the administration in fixing local market values, and monitors large-scale mining activities.

Mining Business Center: an office designed to simplify the investor experience. It brings together, in one location, all the key offices of the mining administration that deal with mining operators. This center serves both as the main entry point for mining investments in Madagascar and as a platform for interaction between the government and both national and foreign investors.

However, after several interviews and discussions we had, it appears that the center currently operates only in the gold sector, while all applications for mining permits continue to be processed at the BCMM office in Ampandrianomby.

OMNIS: The National Office of Mines and Strategic Industries represents the Malagasy State by holding shares in key mining companies, such as QMM.

Obligations Overview for Mining Companies

Technical & Financial Commitments	Every permit includes a “Cahier des Charges Minières” (CCM) specifying technical and financial obligations.
Environmental Protection	Environmental authorization required before any mining activity.Environmental Impact Study (EIE) for PE, and Programme d’Engagement Environnemental (PEE) for PR and PREA.Environmental rehabilitation provision required.Quitus environnemental needed
Social Responsibility & Local Content	Social responsibility plan (PRSE) required.80% of the workforce must be Malagasy during the exploitation phase.Contributions to the “Fonds Minier d’Investissement Social et Communautaire” (FMISC) for community development.
Human Rights & Labor Standards	Prohibition of child labor (except light work for 15+), discrimination, and sexual exploitation.Promotion of gender equality and respect for human rights.
Fiscal Obligations	5% “Droits et Taxes Spéciaux sur les Produits Miniers” (DTSPM) on FOB export value (2% to CTDs, 3% to the State).0% tax reduction on transformed minerals.Subject to general tax laws.
Administrative Fees (FAM)	Annual payments per square, distributed among multiple public institutions and development funds.
Transparency & Governance	Compliance with Extractive Industries Transparency Initiative (ITIE): audited reports, public disclosure of payments, ownership info, and contracts
Reporting Requirements	Regular submission of activity, expenditure, technical, and feasibility reports.
Inspections	Mining operations, storage sites, and exports are subject to inspections by the Mining Administration.

Export Procedures for Mining Products in Madagascar

All exports of mining products, quarry substances, fossils, and rare-deposit substances are subject to strict conformity controls managed by the Ministry of Mines. The process includes several key steps:

Conformity control: Exporters must submit a declaration, upon which the Ministry of Mines conducts conformity checks.

For industrial mining products, transformed local products, and industrial stones, conformity control is done through sampling detailed by ministerial orders.

For precious and fine stones, full and comprehensive conformity control is mandatory – sampling is not permitted. 

Documentation and supervision: The loading (“empotage”) and sealing of containers must be carried out in the presence of representatives from the Ministry of Mines.

Certificate of conformity: After successful verification of the nature and conformity of the products, the Mining Administration issues a Certificate of Conformity. This certificate is a prerequisite for exporting any mining product from Madagascar.

Financial obligations: Exporters must domicile their export proceeds with a bank and fully repatriate foreign currency revenues to Madagascar, converting them via the Interbank Currency Market in accordance with local regulations.

All export transactions, except for sales made at international fairs or exhibitions, must be processed through documented remittance or letters of credit. Free remittance transactions and cash transfers are not allowed.

Prohibited products: Fossils of major scientific interest are strictly prohibited from commercialization. Fossils that are not prohibited may only be exported after being processed or transformed. 

Concluding Statements

Starting a business in Madagascar can be complex, and entering the mining sector adds an extra level of challenge.

At Madagascar Invest, we support you through every step of the process, leveraging our deep understanding of local administrative procedures and the legal framework to help you launch your mining business with confidence.