8 The Japan Times Friday, March 31, 2017 Special Economic Reports www.global-insight.net GLOBAL INSIGHT MADAGASCAR The ambitious island nation is capitalizing on its precious natural resources and enviable strategic location The giant of the Indian Ocean takes major strides From rare minerals to cash crops, Madagascar is making the most of make it more affordable to the Malagasy. We are looking for its national treasures to offer international investors rich rewards investors and many have already come and reached out to us.” The giant of the Indian Ocean, With four large hydroelectric Madagascar’s ambitious national projects and two solar energy ini- development plan is gathering tiatives, offi cials have earmarked

pace as government reforms signifi cant investment in infra- Dudarev Mikhail-Shutterstock PHOTO: boost economic growth, improve structure that will be supported the investment climate and by dozens of rural electrifi cation increase returns on its abundant projects. natural resources. Democratic elections in 2013 Energizing the economy created long-awaited political Spearheading this invest- stability that has been a catalyst ment drive and modernization for solid fi scal progress, regional program is the Ministry of integration and generated a Energy and Hydrocarbons, myriad of investment opportuni- Hery Rajaonarimampianina Olivier Mahafaly Solonandrasana where offi cials understand the ties throughout all sectors of the President Prime Minister importance of having foreign economy. partners — such as Panasonic Strategically located close able energy and transport — that investor in the biggest mining — to develop such important to the crossroads of three con- will help eradicate poverty. project in Madagascar and the projects. tinents and key international “Madagascar has a strate- wider region — the Ambatovy “Our energy sector has a legal shipping lanes, the world’s gic location right in between project for nickel and cobalt. framework that is secure and fourth-largest island benefi ts Asia and Africa and this gives “Japan is a very traditional guarantees investments above from duty-free access to lucrative us many opportunities to country with high standards and all,” said former Energy Minister foreign markets and bilateral develop our country,” said a strong development. Its popula- Rodolphe Ramanantsoa. “We Madagascar’s colorful and cosmopolitan capital, Antananarivo, is among the areas benefi ting from international investment. political, economic and trade ties Rajaonarimampianina. tion is well educated, creative and expect to go much further with with superpowers such as Japan. “We have many natural dynamic — all of which is what our renewable energy projects.” During the sixth Tokyo resources that are benefi cial we need to develop. Madagascar Given Madagascar’s tremen- it is poised to become the world’s for foreign investments and “Our main goal is to fi nd International Conference on to the development of tourism has huge potential and opportu- dous mineral and hydrocarbons biggest lateritic nickel mine. examines the latest exploration technical and fi nancial part- African Development (TICAD and present many openings for nities in all sectors.” potential, the extractive sector “The fi nal outcome from these data to facilitate easy and reliable ners to increase the potential of VI) in Kenya in August, Japanese investors. Our fauna and fl ora is Prime Minister Olivier is another priority area for the 30 years of Ambatovy is a revenue prospect appraisal. Madagascar’s oil and gas sector. Prime Minister, Shinzo Abe, incredibly diverse and endemic. Mahafaly Solonandrasana said government. New of $4.5 billion for the state, as well By employing a multidisci- “Once the new petroleum held a very positive meeting with “We are working on the busi- that while the national economy and mining codes will acceler- as the creation of 7,300 jobs,” said plinary team of highly qualifi ed code is introduced, OMNIS will Hery Rajaonarimampianina, ness climate as my priority is is anchored to the agriculture ate development, attract major Zafi lahy Ying Vah, minister of technical staff with valuable release an international tender president of Madagascar. to create jobs and wealth. To sector — with the nation the international investors and boost mining and oil. “Such a project experience of large-scale project for more than 40 offshore block, Abe agreed to loan Madagascar achieve this, we must work hand world’s leading grower of vanilla competitiveness. has a real impact on the economy management, OMNIS is per- as well as the few remaining hundreds of millions of dollars for in hand with the private sector. and a major exporter of fruit — Exploration is a key component of the region as it has consumed fectly equipped to handle new onshore blocks,” he revealed. the Toamasina Port expansion “We are undertaking many the government’s vision goes and will have a very important hundreds of millions of dollars of investigation techniques and “The new petroleum code will project that will utilize advanced social, economic and security beyond agriculture. impact on socioeconomic devel- Malagasy products. contribute to economic growth. improve the business climate and technology from Japanese reforms. Madagascar presents “We want to develop a strong opment, with the government “Japan is our key partner in Bonaventure Rasoanaivo, make Madagascar more attrac- companies to create key marine tremendous opportunities agribusiness industry as well,” working closely with the private the Ambatovy project through general manager of OMNIS, is tive to international companies. Bonaventure Rasoanaivo logistics infrastructure. within the renewable energy he explained. “It will provide sector to establish an attractive Sumitomo, but we want more excited about the many oppor- “It will also clarify the role General Manager, OMNIS The agreement between the sector, as well as the agribusiness jobs, create wealth and impact legal framework. The discovery investors and private companies tunities that the new petroleum of OMNIS and the ministry. A two island countries — who share and tourism industries.” positively government cashfl ow. of oil in the Mozambique canal here. Sumitomo is the pioneer, and mining codes will create, national oil company will be set the oil companies to give them values of tradition and culture The president is eager for We aim to make this sector the area is also a very promising but there are enough openings particularly as his company is up and OMNIS will become the our know-how,” he added. “We — is just the starting point of a Japan to play a major role in soci- main driver of socioeconomic development. for other Japanese investors in working with more than a dozen regulatory body. Better transpar- have many different experts bigger and broader cooperation oeconomic development. “Japan development. Madagascar also The showcase mining project the mining, oil and gas sectors.” oil companies across 18 blocks. ency and governance will help working here in OMNIS: mining as they look to build on 57 years has always held a special place has a big role to play in regional is Ambatovy, one of the most Such new arrivals will become “These companies are well attract investors. engineers, geologists, drillers of diplomatic relations. because of the good cooperation food security.” ambitious industrial undertak- involved with OMNIS, the advanced within the exploration According to the senior and so on. In a further sign of the strong between the two countries for Switching the spotlight to ings in the history of Madagascar, dynamic agency created 41 years phase and most of them would be executive, OMNIS has acquired “Our experts are trained confi dence international donors more than 50 years,” he said. infrastructure, he added: “Less east Africa and the Indian Ocean ago that manages, develops and able to start the drilling process tremendous expertise during its abroad, which helps us assist have in the republic of 23 million “We have worked in different than 25 percent of the population region. Ambatovy — which promotes the national petroleum in 2017,” he explained. “To 40 years of existence, meaning these international companies. people, in late 2016 the World sectors that are very important has access to electricity; increas- involves Japan’s Sumitomo — and mineral resources. make these drilling activities the enterprise possesses all the OMNIS benefi ts from the Bank Group pledged $1.3 billion for our development. These ing this fi gure is a priority. will produce 60,000 tonnes of OMNIS endeavors to develop profi table, the oil companies are competences and skills required expertise of these companies for sustainable development in include agriculture, fi sheries, “This transition leans on refi ned nickel and 5,600 tonnes partnerships with oil and mining seeking technical and fi nancial for developing Madagascar’s so it’s a win-win situation that areas like agribusiness and infra- health, education and infra- renewable energy, which will of refi ned cobalt every year for companies by creating incentives partners to absorb the massive abundant natural resources. allows us to reach international structure — particularly renew- structure. Japan is also the main lower the cost of electricity and the next three decades, meaning and competitive environments investments required to do so. “We are working closely with standards.”

All that glitters is not always gold Buried treasures like precious minerals and metals can be found Ambatovy. “People here often say that across the island, meaning Madagascar is a magnet for miners Madagascar is rich, but the popu- lation is poor. This is why I have Famous for the opulence of “Mining represents only 2 The unrefi ned products are always campaigned for mining its subsoil and geo-diversity, percent of GDP at present, so treated at the factory at Brieville activities, whether industrial Madagascar is rich in untapped there is still much to do,” he to obtain fi nished products: or small scale, to have a direct reserves of rare minerals and acknowledges. rocky chromium and concen- impact on the population. precious metals that are increas- “We are looking for partner- trated chromium. “Mining companies should ingly catching the eyes of inter- ships that benefi t all parties. We After the factory, minerals contribute to the improvement of national investors looking for must show mining investors are transported to the station of quality of life of the population: lucrative returns. we have a solid policy — a clear Morarano and Moramanga for construction of schools, recon- Among its buried treasures policy that convinces them to export at the port of Tamatave. struction of communal roads, are industrial and metallic min- come to Madagascar. According to CEO Arsène hospitals, markets, the supply of erals such as ilmenite, graphite, “Investors certainly come for Rakotoarisoa once the new energy and potable water. limestone, gypsum, dolomite, the profi t, but we also want to see mining code is implemented, “We are trying to formalize silica, mica, titanium, quartz, that this gives a puff of oxygen to KRAOMA will become the this sector by telling small scale gold, platinum group, silver, iron, the economy.” national mining company and operators we have let them carry copper, zinc, nickel, cobalt and Featuring a high heat stabil- the exploitation of chromium out their activities, but now we chromite. ity that makes it popular as a will be managed by a subsidiary need to reorganize this fi eld. Madagascar’s terrain is also refractory material, chromium of the enterprise. “Our job at KRAOMA is to use MADAGASCAR MINING home to jewels such as rubies, extracted from chromite is “The general philosophy of the our credibility with authorities to sapphires and emeralds, with mainly used in chrome plating national company of mines is to explain to the population why we Endless opportunities the mining of such natural gems and alloying for the manufactur- implement specifi c companies require this reorganization. afforded priority status by the ing of corrosion resistant stain- to manage each mineral,” the “We do not want to exclude government as it looks to develop less steel and super-alloys. senior executive explained. these miners. We will always the sector sustainably. Madagascar has signifi cant “We are convinced of our poten- allow them to operate with allu- Prime Minister Olivier deposits of this steely-gray, tial and believe there is a reserve vial gold, but gold in general has «KRAOMA S.A. (KRAOMITA MALAGASY) is the only company on the Mahafaly Solonandrasana said lustrous, hard and brittle metal, of at least 20 million tonnes of to be exploited in an industrial entire the red island which operates high-scale chromite. The company’s the mining code will improve with efforts to extract the mate- chromium in Madagascar. way,” Rakotoarisoa continued. main activity is the mining, processing and export of chromite mineral.» transparency and effi ciency. rial spearheaded by Kraomita “In addition, there are other “This is the only way we can The new legislation will create Malagasy (KRAOMA). untapped minerals investors can really control and govern the KRAOMA S.A. (Kraomita Malagasy) a sturdy platform for growth that Chromite deposits operated by exploit, although they will prob- resources from which the local Ampefi loka | Tel: +261 20 22 346 88 | Email: [email protected] | Website: www.kraoma.mg will have a positive impact on the KRAOMA are at Ankazotaolana ably not require such massive public, communities and regions national economic plan. and Bemanevika. investment like that seen at would benefi t.”

PAGE: 8 Special Economic Reports The Japan Times Friday, March 31, 2017 9 GLOBAL INSIGHT MADAGASCAR www.global-insight.net

Deeply committed to the sustainable development of Madagascar’s petroleum and mineral resources, OMNIS is the undisputed leader in its eld

OMNIS has earned itself a solid reputation for reliability since its establishment 40 years ago. Its main activities are developing rapidly and are internationally acknowledged in the hydrocarbons sector, mineral and drilling elds and inside the laboratory, as Madagascar’s oil and gas potential is alleged to be amongst the greatest in Africa, if not worldwide. Madagascar has ve sedimentary basins with a strong potential as they present similarities with Eastern African basins where oil and gas were discovered. Data is already available for three of these sedimentary basins, while the two remaining basins are still under–explored and require a speculative survey. Most of the oil companies now exploring conventional oil in Madagascar are preparing to drill, while in non-conventional oil exploration, Madagascar Oil, the most advanced of OMNIS’s partners, is now in its production and commercialization stage. Madagascar Oil, in partnership with OMNIS expects to produce between 6,000 and 10,000 bpd in the rst phase, for local consumption, and between 100,000 and 150,000 bpd later on for local consumption and exportation. Another OMNIS partner is continuing with a production trial of its gas pilot unit in the southern part of Madagascar. The project is currently focusing on a feasibility study of the electri cation of the region, and will look at Madagascar as a whole later on. OMNIS expects to promote approximately 40 o shore oil blocks, as well as all onshore free blocks, once the new petroleum code is promulgated. Not only is OMNIS the regulatory authority for petroleum activities in Madagascar, it is also in charge of the promotion of uranium. As the reference point for oil and gas as well as uranium companies wishing to take part in the development of the sector, OMNIS will continue to ensure the creation of an incentivized and competitive environment for investments, and access to up-to-date exploration data to allow easy and reliable prospect appraisal.

Madagascar’s potential in gures

05 sedimentary basins : 1, 104, 900 km Gas Resources : • Morondava : 616, 200 km² • Manambolo Ouest : 2.9 Tcf) 21, Lalana Razanakombana Ambohijatovo • Majunga: 171, 200 km² • Sikily : 1.085 Tcf Antananarivo 101 - Madagascar • Ambilobe: 46, 500 km² • Toliary : 0.7 Tcf • East Coast: 196, 700 km² • Ambre Cape: 74, 300 km² More precisely: Telephone: +261 20 22 242 83 • 40 blocks to be called for tenders Email: [email protected] Oil and Gas Resources Evaluation: • 225 petroleum blocks requiring geophysical survey Website: www.omnis.mg • Conventional : Geological resources: 1587 MMBBLS • Currently 6 000 — 10 000 bbls/day heavy oil production • Proven nonconventional reserves: and later 100 000 — 150 000 bbls/day Tsimiroro heavy oil: 1.7 MMBBLS sandstone oil: 2 MMBBLS

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