Madagascar Reopens Mining Sector After 16-Year Permit Freeze

Madagascar Lifts 16-Year Mining Permit Moratorium, Reopening Critical Minerals Sector but Keeps Gold Restrictions

Madagascar has lifted a 16-year moratorium on issuing new mining permits for most minerals, reopening a sector that is central to Africa’s critical minerals race and the island nation’s evolving geopolitical and economic strategy.

The decision was announced late Thursday by the Council of Ministers, chaired by the President of the Republic, ending a suspension that had been in place since 2010.

The moratorium was originally imposed to address governance weaknesses, reduce corruption risks, resolve overlapping licences, and modernise Madagascar’s outdated mining legislation.

While the suspension has now been lifted for most minerals, restrictions on gold mining permits will remain in force, reflecting persistent regulatory challenges in a sector dominated by informal and artisanal activity.

“Mining permits are an essential working tool that allow operators and investors to operate legally,” said Carl Andriamparany, Madagascar’s Minister of Mines, at a press conference. “That is why we have decided to lift the suspension on issuing permits.”

A Temporary Measure That Became Structural

The moratorium was introduced by Madagascar’s post-crisis transitional government as a temporary reform mechanism. However, political instability, institutional delays, and successive changes in administration allowed the suspension to persist for more than a decade.

During this period, more than 1,600 permit applications accumulated, significantly constraining exploration activity and deterring investment in one of Africa’s most mineral-rich jurisdictions.

Pressure to reopen the mining sector intensified following widespread civil unrest between September 25 and October 14, 2025. Youth-led protests erupted across the country over chronic water and electricity shortages, corruption, and entrenched poverty, culminating in the removal of both the Prime Minister and the President.

Colonel Michaël Randrianirina now serves as interim President and Chairman of the Council of the Presidency for the Re-Foundation of the Republic, as the new government faces mounting pressure to stabilise the economy and improve living standards.

Investment Opportunities Reopen

The suspension of new mining permits stalled numerous projects and delayed billions of dollars in potential investment. Its removal now reopens the sector to foreign and domestic developers.

Among the projects affected was Red Island Minerals’ Sakoa Coal Project, where development has been largely frozen since at least 2012 due to political disputes and permit-related challenges.

That year, PTT Asia Pacific Mining, a subsidiary of Thailand’s PTT Group, acquired full ownership of Red Island Minerals with the intention of advancing the project. Permit renewals were subsequently blocked by the transitional government, and the project has yet to progress to active mining.

Another notable example is the Toliara Project, operated by U.S.-based Energy Fuels, which produces titanium and zirconium minerals, including ilmenite, rutile, and zircon.

Development was paused in 2019 amid fiscal and operational negotiations, leading to the suspension of community development programs.

The resumption of permit issuance is expected to allow developers to restart technical, environmental, and social work, with a Final Investment Decision (FID) anticipated in early 2026.

Gold Remains a Regulatory Outlier

Despite the broader reopening of the mining sector, gold remains subject to strict controls. The government opted to maintain the moratorium on gold permits, citing weak oversight and a significant gap between official production data and the scale of artisanal mining.

“According to official statistics for the past year, the volume of gold declared amounts to just over 13 kilograms,” Andriamparany said, describing the figure as “negligible” compared with the level of gold mining activity nationwide.

“In light of this situation, the government has acknowledged our current inability to effectively regulate the sector and establish a rigorous monitoring system,” he added.