Rio Tinto and the Government of Madagascar have reached agreement on the future fiscal arrangements for QIT Madagascar Minerals (QMM) and renewed their long-term partnership for the sustainable operation of the QMM mine in Fort Dauphin, Madagascar, said the company.
The new agreement was confirmed by the High Constitutional Court of Madagascar on 8 Aug 2023 and signed by the parties on 22 Aug 2023. It will enhance the benefits received by the people of Madagascar and support a sustainable future for the QMM mine, providing certainty for Rio Tinto on the fiscal arrangements. Under the terms of the agreement, there will be an increase in the royalty rate from 2% to 2.5% and QMM will issue its first dividend to the Government of Madagascar in 2023.
An amount equalling the $12 M dividend will be invested by the Government in the 109-km rehabilitation project of the National Road 13 (RN13). Rio Tinto will also contribute up to $8 M to the road project, subject to predefined milestones and deadlines. The project will bring significant improvement to the region by facilitating the movement of people and critical supplies to hard-to-access areas. Rio Tinto has agreed to cancel $77 M in advances made to the Government of Madagascar to finance its funding of QMM.
The state will now hold a 15% free carry ownership of QMM and maintain its 20% voting right, with no obligation to contribute to capital funding or exposure to dilution. QMM will also increase support for local communities by doubling its annual contribution to fund programmes of interest.
We remind, Unigel, the largest Brazilian manufacturer of nitrogen fertilizers, on Thursday announced the resumption of activities at a unit called Unigel Agro Sergipe, which produces urea and ammonia. The company said it scheduled the restart for September after a slight improvement in the outlook for the domestic petrochemical sector. The factory in Sergipe state was idled due to challenging market conditions, Unigel said. Another plant in Bahia state that was likewise idled will remain offline.
mrchub.com