The mining code dates from 1999 and a new code is being elaborated. This code encompasses nearly all of the mining companies in Madagascar.
The QMM ilmenite project (a joint venture between Rio Tinto and the Government of Madagascar) is governed by the “Convention d’Établissement” and mining companies whose investment is more than 50 billion MGA (USD 16 million) are subject to the “Loi sur les Grands Investissements Miniers”.
The upstream oil sector is governed by the Petroleum Code and by a 1997 decree, as well as by oil contracts signed between the Office of National Mining and Strategic Resources (OMNIS), the state-owned agency responsible for managing, developing and promoting Madagascar’s petroleum and mineral resources, and companies. A revision to the Petroleum Code is currently underway.
In the petroleum sector, a one-time withholding tax of three other taxes is applied during the production phase. During exploration, the fiscal regime is that of common law, stipulated by the General Tax Code.