Rio Tinto's involvement with the Malagasy Government

The Malagasy Government, represented by l'Office des Mines Nationales et des Industries Stratégiques (OMNIS), owns 20% of the Madagascar mineral sands development project.

Rio Tinto funded 100% of the project's construction until first production, forecast in 2009. At this point, OMNIS was due to fund its share of project costs or dilute its interest.

In 2005, the Malagasy Government agreed to contribute US$35 million to the establishment of the port. This contribution is part of its «Integrated Growth Poles» project, funded by the World Bank.

QIT Madagascar Minerals will manage the port operations. At the end of the life of the mine (projected at 40 years from first production), the port will fall under the responsibility and control of the Malagasy Government.

Rio Tinto's Government & Corporate Relations team is involved with the Malagasy Government in two key areas:

• Maintaining regular dialogue about legislation and policy concerning mining in Madagascar.
• Promoting the Extractive Industry's Transparency Initiative (EITI) in Madagascar.

Many countries are rich in oil, gas and minerals. Studies show that when governance is good, these extractive industries can generate large revenues to foster economic growth and reduce poverty. When governance is weak, they may instead cause poverty, corruption, and conflict – the so called "resource curse". The EITI aims to defeat this “curse” by improving transparency and accountability through supporting improved governance in resource-rich countries.

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After over 20 years of exploration, planning, negotiation and collaboration, Rio Tinto is bringing to fruition the biggest ever infrastructure project in the history of Madagascar

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