# Ambatovy mine

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{{Short description|Mine in Madagascar}}
{{Infobox mine
 | name                 = Ambatovy 
 | image                = 
 | width                = 
 | caption              = 
 | pushpin_map          = Madagascar
 | pushpin_label        = 
 | pushpin_map_caption  = 
 | coordinates          = {{coord|-18.845|48.307|type:landmark_region:MG_dim:5km|display=inline,title}}
 | place                = [Moramanga](/source/Moramanga)
 | subdivision_type     = Regions
 | state/province = [Atsinanana](/source/Atsinanana) and [Alaotra Mangoro](/source/Alaotra_Mangoro)
 | country              = [Madagascar](/source/Madagascar)
 | owner                = [Sumitomo Corporation](/source/Sumitomo_Corporation) (54.18%)<br> Korea Mine Rehabilitation and Mineral Resources Corporation {KOMIR) (45.82%)<ref name="Sustainability">{{cite web |title=Sustainability report 2022  |url=https://ambatovy.com/en/wp-content/uploads/2023/09/Ambatovy-Sustainability-Report-2022-EN.pdf |publisher=Ambatovy |access-date=8 May 2024  |location=Antananarivo, Madagascar |page=16 |date=2023}}</ref>
 | acquisition year    = 2015
 | official website    = {{URL|ambatovy.com}}
 | products            = [Nickel](/source/Nickel) <br/> [Cobalt](/source/Cobalt) <br/> [Ammonium sulfate](/source/Ammonium_sulfate)
 | financial year      = 
 | type                = surface
 | opening year         = 2012
 | discovery year       = 1960
}}

The '''Ambatovy mine''' is a large [open cut](/source/Open-pit_mining) [lateritic nickel-cobalt](/source/Lateritic_nickel_ore_deposits) mine located in [Madagascar](/source/Madagascar), off the east coast of Africa. The largest mine in the country, it is a major contributor to the economy of Madagascar.

==Ownership and operations==
Several exploration permits for the site were acquired by [Phelps Dodge](/source/Phelps_Dodge) in 1995. In 2004 and 2005 Phelps Dodge sold its interest in the project to [Dynatec Mining Limited](/source/Dynatec_Mining_Limited), a Canadian company.<ref>{{cite web | title=Nickel exploration – Dynatec to acquire all of Ambatovy | website=Canadian Mining Journal | date=2005-02-02 | url=https://www.canadianminingjournal.com/news/nickel-exploration-dynatec-to-acquire-all-of-ambatovy/ | access-date=2021-09-09}}</ref> Dynatec began mine development in 2007, backed by international development groups including the [European Investment Bank](/source/European_Investment_Bank).<ref name="Soustras">{{cite news |last1=Randrianarisoa |first1=Riana Raymonde |last2=Soustras |first2=Laurence |title=The Ambatovy Nickel mine in Madagascar has caused numerous environmental problems |url=https://theecologist.org/2017/nov/23/ambatovy-nickel-mine-madagascar-has-caused-numerous-environmental-problems |access-date=8 June 2021 |work=The Ecologist |date=23 November 2017 |language=en}}</ref><ref name="MT">{{cite news |last1=Mandimbisoa |first1=R. |title=Mines: Ambatovy reprend sa production en mars |url=https://www.madagascar-tribune.com/Mines-Ambatovy-reprend-sa-production-en-mars.html |access-date=8 June 2021 |work=Madagascar Tribune |date=25 February 2021 |language=fr}}</ref> [Sherritt International](/source/Sherritt_International) acquired Dynatec and later transferred majority control of the mine in a debt for equity swap to the Japanese [Sumitomo Corporation](/source/Sumitomo_Corporation).<ref name="MT" /> The rest of equity in the mine is held by the Korean State-owned Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR).<ref name="Sustainability"/><ref name="history">{{cite web |title=History of the project |url=https://ambatovy.com/en/who-we-are/history/ |publisher=Ambatovy |access-date=8 May 2024 |location=Antananarivo, Madagascar}}</ref>

Until 2020, when production was suspended due to the [COVID-19 pandemic in Madagascar](/source/COVID-19_pandemic_in_Madagascar), the mine was producing 4,000 tonnes of refined cobalt and almost 40,000 tonnes of refined nickel every year.<ref name="Dykes">{{cite news |last1=Dykes |first1=Jacob |title=No net loss: can development projects offset damage to biodiversity by boosting nature elsewhere |url=https://geographical.co.uk/people/development/item/3784-no-net-loss-can-development-projects-offset-damage-to-biodiversity-by-boosting-nature-elsewhere |access-date=8 June 2021 |work=Geographical Magazine|date=13 August 2020 |language=en-gb}}</ref><ref name="MT" /> Operations resumed in March 2021.<ref>{{cite web | title=Sumitomo says Ambatovy nickel project in Madagascar resumed March 23 | website=MINING.COM | date=2021-03-29 | url=https://www.mining.com/web/sumitomo-says-ambatovy-nickel-project-in-madagascar-resumed-march-23/ | access-date=2022-07-16}}</ref> After running at a loss from 2014 to 2020, the mine became profitable in 2021, especially after a large [increase in nickel prices](/source/Economic_impact_of_the_2022_Russian_invasion_of_Ukraine) due to the Russian invasion of Ukraine.

==Economic impact==
During construction, Ambatovy accounted for 35% of the total [foreign direct investment](/source/foreign_direct_investment) in the country, between 2006 and 2012.<ref>{{cite web |last1=Karlik |first1=Nick |title=Evaluating the On-Site Impacts of the Ambatovy Project through the Lens of Environmental Justice |url=https://digitalcollections.sit.edu/isp_collection/3585 |publisher= Independent Study Project (ISP) Collection. |access-date=8 May 2024 |date=2023}}</ref> Ambatovy accounts for 32% of Madagascar’s foreign exchange earnings.<ref>{{cite web |title=Madagascar: Ambatovy mining project |url=https://www.afdb.org/en/topics-and-sectors/topics/industrialization/key-projects/madagascar-ambatovy-mining-project |publisher=African Development Bank |access-date=8 May 2024 |location=Abidjan, Côte d'Ivoire}}</ref> In 2022 the company paid 44 million US$ (198 Billion ariary) in mining taxes & fees to the Malagasy government. Furthermore US$340 million were spent with local purchases.<ref>{{cite news |last1=Randriamamonjy |first1=Itamara |title=Redevances Minieres - Ambatovy verse 198 milliards ariares |url=https://lexpress.mg/11/07/2023/redevances-minieres-ambatovy-verse-198-milliards-ariary/ |access-date=8 May 2024 |work=L'Express de Madagascar |date=11 July 2023 |location=Antananarivo, Madagascar |language=French}}</ref> 40,000 tonnes of nickel and 3600 tons of cobalt were produced during the same year.

==Social and environmental impacts==
Ambatovy is the largest investment in Madagascar's history.<ref name="FE">{{cite journal |last1=Widman |first1=Marit |title=Land Tenure Insecurity and Formalizing Land Rights in Madagascar: A Gender Perspective on the Certification Program |journal=Feminist Economics |date=2014-01-02 |volume=20 |issue=1 |pages=130–154 |doi=10.1080/13545701.2013.873136}}</ref> The mine employs 10,000 people, of which 8,000 are Malagasy, and provides 27 per cent of the country's tax revenues.<ref name="MT" />

The mine has been criticised for its local environmental impacts.<ref name="Soustras" /> The open pit mine displaced {{convert|1,600|ha|acre|abbr=off}} of rainforest and is connected by a 200&nbsp;km long slurry pipeline to the processing plant at [Toamasina](/source/Toamasina), which has a {{convert|750|ha|acre|abbr=off|adj=on}} area [tailings dam](/source/tailings_dam) constructed to contain and store waste ([tailings](/source/tailings)) from plant operations. The mine is among the first to fully [offset the loss of forest](/source/Biodiversity_offsetting) from mining operations.<ref>{{cite web | last=Greenfield | first=Patrick | title=Is a Madagascan mine the first to offset its destruction of rainforest? | website=the Guardian | date=2022-03-09 | url=https://www.theguardian.com/environment/2022/mar/09/ambatovy-the-madagascan-mine-that-might-prove-carbon-offsetting-works-aoe | access-date=2022-07-16}}</ref><ref>{{cite journal | last=Devenish | first=Katie | last2=Desbureaux | first2=Sébastien | last3=Willcock | first3=Simon | last4=Jones | first4=Julia P. G. | title=On track to achieve no net loss of forest at Madagascar’s biggest mine | journal=Nature Sustainability | publisher=Springer Science and Business Media LLC | volume=5 | issue=6 | date=2022-03-03 | issn=2398-9629 | doi=10.1038/s41893-022-00850-7 | pages=498–508|doi-access=free}}</ref>

== References ==
{{reflist}}

Category:Nickel mines in Madagascar
Category:2007 establishments in Madagascar

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Adapted from the Wikipedia article [Ambatovy mine](https://en.wikipedia.org/wiki/Ambatovy_mine) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Ambatovy_mine?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.