Tracking Development - Rio Tinto - Qit Madagascar Minerals

The Production Phase
maximising the economic impact
The presence of QMM has generated significant economic
opportunities for Madagascar in general and the Anosy
region in particular. To attain long-term sustainable
development in the Anosy region, QMM recognised from its
earliest examination of the project the need to require the
stimulation of broad-based economic activities extending far
beyond its own project. Explicitly, the danger of the mine
becoming an enclave industry was acknowledged. Thus,
QMM has and continues to encourage the development of
a “parallel economy.” To contribute to the development of
this economy, QMM has invested in the region by sourcing
products, services and much of its workforce locally, enabling
a positive business environment and financing additional nonmine
related infrastructure.
Strengthening economic opportunities for local populations
is an important goal of QMM’s. From its inception, QMM
adopted a hiring process intended to grant preference to
local applicants. Recruitment is handled through a “Guichet
Unique,” administered by the Ministry of Employment. Lowlevel
posts are advertised solely in Fort Dauphin and highlevel
posts in both Fort Dauphin and Antananarivo. Over 90
per cent of current employees are Malagasy, with 15 per cent
being women. In 2011, of the 652 total direct hire QMM
employees, 5 per cent were expatriate hires, 70 per cent local
hires and 25 per cent Malagasy from other regions.
To develop a positive and enabling business environment for
small and medium sized enterprises, QMM has participated
in various support and capacity building projects with local
businesses. Initiatives include technical training and English
and business management support courses. The objective
is to enable entrepreneurs and businesses to comply with
the standards required by QMM, allowing the company to
procure goods and services locally. In 2011, QMM
spent approximately US$94 million on procurement, with 40
per cent going to local suppliers. Local and national suppliers,
837 of whom have worked with QMM, are complied in a
company database. New service providers are continuously
responding to tenders published by the company. These
include opportunities for housekeeping, cleaning, gardening,
guarding, accommodation and catering. QMM activities
have also generated business opportunities for nationally
registered companies, which have opened branches in Fort
Dauphin, including Henry Fraise & Fils, SICAM, Orange, Telma,
Total, Jovenna and Colas.
The generally low level of economic activity in the region and
QMM’s position as one of the few investors in Fort Dauphin
has generated some discontent among local suppliers. Many
face insecurity generated by short-term contracting and are
understandably pressing for a greater share of procurement.
QMM is working to improve dialogue with local businesses
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