Core Insights - Madagascar's military coup has led to a new government focused on transparency and economic stability, particularly in the mining sector [1][3][15] Mining Industry Overview - Madagascar has significant mineral resources, including 26 million tonnes of graphite reserves and annual production of 7,000 tonnes of rare earths, making it a key player in the global market [5] - The country is also one of Africa's largest graphite exporters and has substantial gold reserves, although much of the gold is exported through informal channels [5] Foreign Investment and Projects - International mining companies are actively investing in Madagascar, with notable projects including the Ambatovy nickel-cobalt mine and the Soalala iron ore mine [6] - Rio Tinto has invested over $1 billion in the QIT Madagascar Minerals project, highlighting the interest from multinational corporations [7] Regulatory Environment and Challenges - The mining sector faces challenges such as slow licensing processes, poor infrastructure, and low electricity access, which hinder the full economic potential of the resources [8] - Transparency International has raised concerns about arbitrary procedures in granting mining titles, which can discourage foreign investment [8] Recent Legislative Changes - The 2023 Mining Code aimed to standardize procedures and attract foreign investment by providing stability guarantees and clarity on permit management [10][11] - This legislative change was positively received by international organizations, with expectations of increased investment in mining projects [12] Political Stability and Future Outlook - The military coup raised initial concerns about potential disruptions in mining operations, but current reports indicate that operations have continued normally [14] - The new administration, led by Prime Minister Herintsalama Rajaonarivelo, is seen as potentially more business-friendly, which could foster a more stable investment environment [16][17]