Tracking Development - Rio Tinto - Qit Madagascar Minerals

The Production Phase
and engage them in joint initiatives to promote local
procurement and employment.
To assist local residents generate income employment
while acquiring specific skill sets, over one hundred HMO
Projects (Haute Intensité de Main d’Oeuvre, or High
Intensity Labour) have been implemented. Requiring no
particular qualifications, HIMO projects have taken place
surrounding Mandena and other mine-related infrastructure,
as well as in Fort Dauphin. Projects include the rehabilitation
of footpaths, street cleaning, garbage removal and sanitation
activities, as well as reforestation, gardening, digging firebreaks
and constructing soccer fields. To date, 2,200 individuals
from some of the poorest households have taken part in
these activities, providing income of about 40 million Ariary
(approximately US$20,000).
An analysis of the regional context has highlighted the difficulty
in accessing credit as a major obstacle in business/enterprise
development. A feasibility study for the establishment of a
regional microfinance institution was initiated in 2005
by the Association Internationale de Crédit Agricole et
Rural (ICAR, or the International Association of Agricultural
and Rural Credit) with the support of QMM and UNDP.
The regions first financing institution, Institution Financière
Régionale d’Anosy (IFRA, or the Regional Financial Institution
of Anosy), financed by the Government of Madagascar and
QMM, was established in 2007. Providing loans through
microfinance in Fort Dauphin with the goal of increasing
productive capacity, by December 2011 the IFRA had 316
clients.
In April 2010, QMM transferred its original 50 IFRA shares
to three farmers’ associations for a total value of 16 million
Ariary (approximately US$8,000). As these associations
include populations affected by the relocation process, the
transfer falls within the scope of support activities targeting
relocated populations surrounding the quarry and Port of
Ehoala.
QMM is involved in sponsoring activities, including cultural,
sporting and social events. In 2011 alone, sponsoring of
these events reached over 50 million Ariary (approximately
US$23,000).
Numerous site visits have been organized for local small
and medium sized enterprises to explore potential business
opportunities offered by QMM and the Port of Ehoala.
As part of the required infrastructure and the company’s
contribution to the region’s economic development,
QMM, with World Bank support, built a public-private
deepwater port on the Ehoala peninsula. The Port
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