Sustainable development Report 2012 - Rio Tinto - Qit Madagascar ...

QIT Madagascar Minerals SA 

riotintomadagascar.com 

ehoalaport.com 

Sustainable development 

Report 2012

Sustainable development report 2012 

Summary 

QIT Madagascar Minerals 04 

Our approach to sustainable development 05 

Employees 06 

Health, accident prevention 06 

Communications and External Relations 09 

Community relations and sustainable development 10 

Environment 14 

Operational performance 16 

Economic performance 18 

2


Message from President 

It is with pleasure that I invite you to read the report of the 2012 calendar 

year. It provides details of the activities we have undertaken during the year 

and demonstrates our commitment to the different aspects of sustainable 

development. As an introduction, I would like to mention some facts illustrating 

these aspects and summarizing our last year performance. 

Accident prevention is fundamental in everything we do and we take nothing 

for granted. Even though our performance in the field within Rio Tinto Group 

features among the best, we find that we have not been able to reduce the 

incidence rate of all injury accidents according to our objectives for the year. 

Our Zero accident goal remains our most significant contribution to sustainable 

development. 

We still keep an upward trend in the production of ilmenite through our 

improvement in process control. We achieved a 24% increase over 2011 

production. We move towards the sustainable profitable growth and profitability. 

We are also proud of our external performance. The reports of the National Office for Environment (ONE) raised no 

major issue. With regard the biodiversity, we maintain our net positive impact objective (NPI). Within the community, 

we continue to promote the Public / Private Partnership (3P) approach in our community initiatives. This approach 

enables us to share resources and encourage stakeholder support. We also signed other strategic partnerships to 

implement development projects. We quote, among others, the World Bank, the PIC, UNICEF, the Pact Madagascar 

and GIZ. 

However, we cannot further contribute to the development of the region if we do not become a profitable company in 

a sustainable way. This is a joint responsibility among stakeholders and we ask all involved to take action in their area 

of responsibility. 

That is how, in a principle of permanent improvement of our performance, we confirmed our strategic objectives: 

• In terms of accident prevention and health of employees, we will focus primarily on the analysis and 

management of critical risks to achieve our target for AIFR. 

• We need to continue to comply fully with all our legal obligations. 

• We shall continue the implementation of our transformation plan to ensure that QMM is profitable in a 

sustainable way. This transformation is based on operational excellence and permanent improvement by reducing 

our costs and increasing our efficiency. We need our employees to contributing to get involved in the success of our 

company and actually become our ambassadors in the community. The development of their talent remains our 

major goal. 

• Our community projects will be reoriented so that they are defined and implemented through a more 

effective partnership with stakeholders and they can truly meet the needs of clients and in return the company can 

have a return on investment. 

Our purpose is keeping our legal and social license to operate in a sustainable way. For this to happen, we will 

meet our legal obligations and our social commitments. But we also expect stakeholders, authorities, civil society, 

community, the respect of their respective obligations and commitments: compliance with applicable regulations, 

mutual respect through dialogue, vision over the long term by promoting sustainable projects. 

I hope that this report will provide educational information on our performance in sustainable development. I invite 

you to give us your feedback to help us developing. 

Ny Fanja Rakotomalala 

President - QIT Madagascar Minerals SA 

3


QIT Madagascar Minerals 

The 75 million tons of Fort Dauphin ilmenite deposit contain about 60% of titanium dioxide (Ti02). Mineral 

sands are spread over three areas totting up 6,000 ha. The ilmenite from Madagascar is sent to the QIT 

reduction plant in Canada to be turned into a slag content of more than 90% of Ti02. QMM also extracts 

zircon mixed with sillimanite from the deposit. 

Ilmenite is the most abundant source of titanium dioxide 

in the world. In its primary form or enriched form, 

ilmenite is used as the main raw material in the titanium 

pigment industry. Nearly 95% of the total consumption 

of titanium dioxide is intended for the production of 

white pigment. The production of titanium metal and 

other minor uses absorb the remaining 5% of titanium 

ore. 

The titanium dioxide can be found into finished product 

in our daily lives. It is mostly used in automotive 

construction, paint industry, building materials, and to a 

lesser extent in the production of plastic and paper. 

Zircon is mostly used in refractory foundries. It is 

also within the production of ceramics, sanitary ware, 

television screens and computer monitors. Refined, 

it is used in different electronic applications in the 

manufacture of jewelry and many industrial products. 

Emergent countries are the main consumers of ilmenite 

and zircon and represent 70-80% of the demand. 

QMM is 80% owned by Rio Tinto and 20% by the 

Malagasy government. 

4


Our approach to 

sustainable development 

The responsibility is divided in this movement towards 

sustainable development. QMM is accountable to its 

host region with its legal obligations as well as its social 

commitments. But the government as well as the 

region are legally responsible for the social, economic 

and environmental development of the country and are 

accountable to the people of their performance in the 

field. It is up to the authorities to establish the rule of law 

in order to enable players to perform their activities in a 

climate conducive to business. 

The development is a shared concern. To reach 

concerted and integrated action and maximize the 

expected impacts, partnerships must be forged and 

exchanges required among stakeholders and recipients. 

Mutual respect is an integral principle of a viable 

partnership and constructive dialogue. 

In this partnership, a teamwork is required if we want to 

reach the same goal. The sense of belonging generated 

by the team spirit links each member to success or 

failure of the partner and encourages this one to act 

accordingly. 

Transparency goes along with integrity. Rio Tinto is 

ranked the second most transparent group in the world 

out of the 105 largest private groups. This rank defines 

us like a company with integrity and our organization 

has established procedures and needed guidelines to 

enforce integrity. 

Responsibility, Respect, Teamwork and Integrity 

are the four core values of Rio Tinto. These values 

underline our approach to sustainable development 

and reaffirm our commitment to our social 

responsibility. 

This report presents such approach through four main 

areas: 

• Our employees ; 

• The community ; 

• The environment ; and 

• The economic and operational performance. 

5


Employees 

Profile of employees 

Our employees are key pillars of our business. Approximately 

1,320 people work for QMM and its contractors. 686 people are in 

permanent positions within the Company and the Port Ehoala. These 

permanent jobs are as follows : 

• 14% are women 

• 4% of expatriates 

• 76% malagasy employees were hired in Fort Dauphin. 

The comparison with the 2011 and earlier statistics show that 

we respect our hiring policy. This policy is intended not only to a 

gradual decrease in the number of expatriates (with the transfer 

of knowledge to the Malagasy employees), but also an increasing 

number of local employment (in collaboration with the Employment 

Service of Anosy). 

Recruitment 

We have taken on a principle of recruitment to meet our 

commitments in the field: maximize local hiring taking into account 

the skills required for the position to be filled. We worked with 

the Employment Service to identify and implement a transparent 

recruitment process that would ensure equal opportunities for all 

job seekers. The House of Employment in Anosy Region (MERA) 

was founded and the first treatments of all our jobs are performed 

by the staff of this institution. Reception of requests for jobs, sorting 

applications under the profile of the post, selection of candidates to 

be submitted to QMM. 

With equal skills, we set criteria which enable us to justify our 

selection between several applicants. In order of priority, these 

criteria are : 

1. An applicant residing within an impacted community by our 

construction and mining activities 

2. An capplicant born in or residing in Fort Dauphin or residing in Fort 

Dauphin for at least five-years, sufficient time for social inclusion 

in the environment 

Category Forecast Achievement 

Rate of achievement 

compared to forecast 

Distribution of 

achievement 

according to the 

category 

Professional technical 7 340 3 579 185% 41% 

Leadership 1 968 3 878 197% 12% 

Health, Safety, Environment and Quality 

(HSEQ) 

3. An applicant living or residing in Fort Dauphin for one to five years 

4. An applicant residing in the Anosy region less than a year 

5. A Malagasy applicant 

6. An expatriate 

In addition to the Employment Committee, a system for handling 

complaints about the recruitment process has been set up as a tag 

for any corruption or other violations of procedures. 

Training 

In 2012, we completed 33,518 hours / Men training for our 

employees. These trainings are distributed as follows (see the table 

below). We focused on the development of technical skills with a 

priority for the training of mechanics technicians. We worked with a 

Canadian training center, not only to achieve the training, but also to 

identify the training needs of other sectors of operations. 

We have also provided 19,266 hours / men training in Health - Safety 

- Environment for employees of contractors. 

Integrated Talent Management System (SIGT) 

We start in 2012 our second year of operation of the integrated 

talent management system. This system is a global program for Rio 

Tinto. It aims to support the management of individual employee 

performance to improve the overall performance of the Company. 

The cycle of talent management also helps identify potential 

successors for critical positions. In 2012, we implemented a learning 

path for these employees. The objective is to quickly develop their 

skills, including those in leadership, and to enable them access to 

more responsibility. 

Development of local skills 

We started the second training program with the recruitment of 

young local graduates. The program will be implemented in 2013, 

aims to train technicians and will last two years. Our goal is to 

7 303 11 258 154% 34% 

Languages 4 620 2 268 49% 7% 

IT and RTBS 3 017 747 25% 2% 

Welcome and induction 2 780 1 788 64% 5% 

6 

27 028 33 518 124% 100%


contribute to the creation of a pool 

of local expertise. 

We call for training centers in 

nationwide. The theoretical training 

courses will be conducted in the 

training centers. The trainees will 

make then an internship at QMM 

to reinforce and implement the 

knowledge. 

« Young graduates » 

Programme 

The objectives of the « Young 

graduates » Programme are: 

• having competent and highly 

qualified human resources in the 

mining sector. 

• developing a pool of skills to meet 

current and future needs of our 

company. 

• identify local talents 

In 2012, we recruited 7 graduates of 

which 4 were hired locally. For 2013, 

we will recruit 12 of which 75% will 

be hired locally. 

These young graduates will benefit 

from a structured training program 

over two years. They will occupy 

different positions in rotation during 

these two years. We assist them in 

their business knowledge, vision and 

values. Their annual development 

plan is balanced between safety 

training, technical and practical 

training on site. Experienced 

mentors assist them during the 

second year to achieve their 

potentials 

We believe that : 

• new graduates play a significant 

part in our pool of professional 

talents, 

• talent management among new 

graduates is a key element of our 

strategy for human resources, 

• development of new graduates 

help us in building our business 

culture and instill it to our early 

career professionals, 

• by encouraging the development 

of technical skills and business 

acumen of graduates we build the 

conditions of our success. 

If this process is well managed, it 

will provide a competitive advantage 

to QMM. 

Health, accident 

prevention 

Health and Industrial hygiene 

The main mission of the Health Service is to 

provide health and well-being of employees. 

16,000 medical consultations have been 

recorded for 2012 in the health center and 

2,900 medical visits were conducted by the 

occupational health care service (60% of 

pre-recruitment medical examinations and 

40% of periodic medical examinations). 

No case of occupational disease has 

been reported, and this since 2008. Some 

suspected cases of employees’ hearing 

loss have been detected, but the series of 

confirmatory tests conducted in accordance 

with appropriate monitoring protocol had 

finally disproved the initial suspicions. The 

latter, however, have encouraged us to 

consider improvements that might still be 

made in terms of hearing protection. 

Good synergy between the Industrial 

Hygiene and Occupational medical services 

led to monitor the daily exhibitions imposed 

on our employees, which could be a source 

of occupational disease. We were able to 

anticipate the suspected cases. 

For radiation, different procedures have 

been implemented to limit the exposure 

of employees: classification of radiation 

areas, staff training, work permits, etc... 

Different projects have been implemented 

to reduce sources of exposure such as 

provision of clean water separation process, 

dust extraction to the dry unit of the 

minerals separation plant, covering different 

equipment leaks, etc... 

Currently, the exposure of employees 

to radiation remains below the exposure 

limits established by the Malagasy and 

international laws. The Monitoring carried 

out by the national regulatory body (INSTN) 

is carried out separately for exposed workers 

and medical monitoring has moved from 

annual to bi-annual frequency with a view to 

reinforcement. 

Accident prevention 

We set out operational excellence in a Zero 

Accident culture. We focused on : 

• risk analysis before and during 

performance of tasks. A HSEQ Committee 

(Health and accident prevention 

Environment Quality) by sector was 

established to promote the effective 

involvement of employees in their own 

safety. 

• management of contractors 

• management of Significant Potential 

Incident (SPI) and the effective 

implementation of related actions to 

prevent the reproduction of the event. 

We also increased training courses and 

awareness of our employees and those 

of contractors to develop a culture of 

interdependent safety. The goal is to make 

any employee properly react to a dangerous 

situation. Significant challenges were 

identified so far but we still have long way to 

go reaching our ultimate goal of zero injury. 

LTI : Lost Time Injury 

MTC : Medical Treatment Case 

7


The number of injuries with medical treatment and lost time have increased compared to the previous year but still 

below 2008 reference state. A lack of coherence in the analysis of risks related to the task and work environment have 

been common contributing factors. 

Settings 

Reference condition 

Mining operations phase 

2008 2011 2012 

Accident statistics(*) LTI 4 1 3 

Number of accidental events which 

required an investigation (**) 

MTC 12 5 6 

Total 16 6 9 

144 including 55 

near-misses 

190 of which 73 near 

misses (23 significant 

potential) 

210 including 138 near 

misses (28 significant 

potential) 

Preventive actions 195 322 279 

Number of non-compliances rectified 

at the following audits 

242 101 4 

Number of shifts lost due to injury 63 12 14 

Frequency rate of accidents with lost 

time (*) 

(*) Statistics in December 31, 2012 

0.06 0.06 0.17 

(**)A near miss is an unwanted event that caused no injury or damage but, in similar circumstances, might have resulted in serious accident. 

Emergency service 

The primary objective of the emergency service is to 

protect employees’ lives and property of the company 

in case of disaster. No serious injury or major material 

damage has been recorded at the end of all operations 

carried out by the team of the service. 

Of the 122 interventions, 38 (approximately 30%) are 

towards the people of Fort Dauphin: forest fires, fires in 

houses, drowning, etc. 

which the municipality had no way to fight so far. The 

members of the CPU, consisted of 15 military firefighters, 

have also benefited from a training program provided 

by members of the Avignon and Bordeaux (France) 

firefighters. 

We also materialized the project of establishing a Civil 

Protection Unit (CPU) in Fort Dauphin. This project is 

the result of a public / private partnership between the 

Malagasy Armed Forces, the Anosy region, the Urban 

Municipality of Fort Dauphin, the France Fort-Dauphin 

Firefighters Association and QMM. 2 fire engines and two 

containers of equipment to fight against the fire were 

given to the town for help to deal with fire risk against 

8


Communication and 

External relations 

Employees are among our key communication targets 

since they are our best ambassadors externally. We 

wanted to improve our internal communication tools by 

adapting needs and expectations of employees. But we 

have also reinforced our collection of comments as the 

flow of communication between management and an 

employee is effective. 

For external communication, we wanted to improve 

our image with the public. We reactivated our 

relationship with local and national media. We also 

promoted communications of proximity to increase the 

opportunities for a direct dialogue with the community. 

As part of our External Relations, our objectives for the 

year were : 

1. reinforcement the stakeholder engagement through 

the implementation of leadership initiatives and 

enhancing good governance. We must be able to 

count on this commitment in their respective areas 

of responsibility to be able to ensure our part in the 

development of the Region. 

2. contributing to the dynamics of regional development 

through support of stakeholder engagement initiatives 

in public / private partnership. 

We have implemented several activities to achieve our 

objectives mainly : 

• An internal survey to assess our communication and 

to collect their suggestions 

• organization of periodic meetings with management 

and periodic diffusion of the status of our activities 

with employees 

• organization of press trips for the organs of presses 

could have direct contact with the people and see our 

work on land 

• organization of public events such as : 

-- 

Fort Dauphin 2020 (exhibition, conference, 

competition) in Fort Dauphin and Antananarivo, 

-- 

Kadaha (meeting with communities, exhibition, 

animation) 

-- 

3P celebration (visit of achievements, conference, 

animation) 

• Signature and implementation of several public / 

private partnerships in areas such as civil protection, 

security, tourism partnerships. 

• Social mobilization in the public / private partnership 

for carrying out public interest work 

• Regular meetings with stakeholders at the national 

level 

Fort Dauphin in 2020, Kadaha, 3P social mobilization: as much major 

manifestaton which have enabled to have constructive face to face with our 

stakeholders 

9


Community Relations and 

Sustainable Development 

Maintain our operating social license 

Our goal is to create a shared, real value by aligning our business 

objectives and our expertise with the development priorities of local 

stakeholders and communities. We support the direct and active 

participation of our host communities with whom we have direct 

social contracts and from whom we take our social license. 

Our main commitments include our contribution to improving 

the livelihoods of our host communities and support their active 

participation in the economic activity generated by our operation. We 

continually apply our approach of working with communities : 

• in building and expanding our base of social, environmental and 

economic knowledge, 

• in building relationships and partnerships with those who bring the 

interests, skills and experience we do not have and 

• in implementing programs focused on the development and local 

economic investment. 

Use of land and resources by our host community 

Address the issue of community access to land and natural resources 

is one of the most important elements in maintaining our social 

license to operate. In doing so, we have reinforced and revitalized 

the DINA which is an exceptional Malagasy traditional social contract 

based on rights, responsibilities, benefits and mutually agreed rules. 

Since 2002, QMM supported the DINA as the basis of our work with 

our host community. In order to further promote partnerships with 

communities, as users of resources, and to ensure access to land 

and the joint management of biodiversity and natural resources 

within and outside of mining concessions Mandena, Sainte Luce 

and Petriky, we gave priority to integrated DINA to serve as a link 

between communities, livelihoods and our social and environmental 

obligations. 

To ensure that livelihoods being sustainable and reinforced and 

that social and environmental challenge are addressed, we focus 

on effective stakeholders’ engagement and dialogue as the key in 

building and maintaining trust with the community. 

Target our development efforts 

We strive to improve the way we work with communities, and the 

impact of our community investment, stressing the importance of 

data not only based on research but also complete. We also strive 

to develop, improve and exploit knowledge base, otherwise known 

as socio-economic base (including demographic trends, labour 

market, household behaviour and other social characteristics) of 

communities in which we interact. This allows a more informed 

strategy and decision-making according to the types of actors and 

given their resources, the logic of production and constraints. 

The activities implemented in 2012 within QMM in the Integrated 

Development Programme (IDP), an initiative launched in 2009, 

have promoted income generating activities to support sustainable 

livelihoods and include artisanal production, farming, fishing and 

honey production. 

Below are some figures illustrating the achievements: 

Handicraft 

• 285 recipient artisans 

• 24 154 200 Ar of total income generated 

• 23 253 items products 

Fishing 

• 128 fishermen received different support 

• 14 932 kg of fish production 

• 21 998 000 Ar of generated income 

Pig breeding 

• 130 pig farmers into 11 common initial pigsties 

• 520 piglets distributed to those pig farmers 

• 2 536 piglets produced in 2012 

• 1 439 sold cattles (piglet, fattened pig, reformed genitor) 

• 140 835 000 Ar of generated income 

Breeding of common carp and eel 

• 40 fish ponds built 

• 12 690 kg of fed fish 

• 2400 kg of sold eel 

• 205 recipients 

Activities implemented through the IDPs were evaluated as pilot 

community investments and are incorporated into a broader systemic 

approach related to initiatives of improved land and coastal areas 

management. Initiatives which build on the lessons learned are being 

diversified with a broader target population. 

In 2013, we will reinforce partnerships with key technical partners 

such as FAFAFI, Entreprise Manoa and SAHA to further improve the 

livelihoods and production capacity based on agriculture and fishing. 

This situation will allow us to address the food security of vulnerable 

populations as an alternative for users of resources affected by our 

operations. We will ensure access to credit through a partnership with 

the Mutual Fund of Mandrare-Fivoy to create two new microfinance 

institutions in the municipalities of Mandromondromotra and 

Ampasy Nahampoana. 

10


Implementation of our good 

neighbour policy 

We recognize that strong partnerships 

remain the most effective way for us to 

offer our contributions. We are working on 

nine priority municipalities strengthening 

community services and infrastructure 

through public-private partnerships (3P). 

To improve the well-being of communities, 

and the current and future workforce, we 

reinforce a program approach in line with 

regional priorities in health. Through a 

partnership with the Health Service of the 

District (SSD), the Regional Directorate of 

Public Health (PRSP), UNICEF and ASOS, we 

support the provision of maternal and child 

health services, while addressing health 

issues such as HIV / AIDS, tuberculosis and 

malaria. It also includes collaboration with 

other partners, including WaterAid, which 

will provide the water and sanitation services 

in collaboration with PIC / World Bank 

programme. 

To build local capacity and improve the 

accessibility and quality of education, we 

support an education program that includes 

scholarships, literacy, civic education, 

extracurricular activities, and technical 

training and leadership. In 2012, 178 young 

people participated in seven literacy centers, 

57% have received their Certificate of 

Primary Education (CEPE) and incorporated 

a secondary school. Tutoring classes are 

reinforced throughout the school year to 

provide additional support to high school 

students in the preparation of national 

examinations. We also contributed to the 

construction of dormitories, canteens, 

classrooms and sports facilities within our 

priority municipalities. 

In 2013, we significantly expand our 

complementary scholarship, tutoring 

and mentoring programme. Through a 

partnership with Pact Madagascar, the 

scholarship programme of Rio Tinto for 

Education (RISE) will deliver more than 

1,300 primary, secondary and university 

scholarships based on academic merit and 

income. 

Lessons learned during the implementation of the activities of PDI will be applied to a wider and 

more targeted population 

11


Supporting a strong regional economy 

Our goal is not only to develop operational skills in the local recruitment, training, career development and the local 

supply chain, but also to ensure that the Community is actively involved in economic activity created by QMM. Below 

the evolution of our local purchases. 

Local purchases (USD) 2009 2010 2011 2012 

Purchases of services 954 966 5 088 222 6 644 151 7 148 594 

Purchases of goods 5 163 862 1 059 314 999 134 774 820 

Total 6 118 828 6 147 537 7 643 285 7 921 414 

To promote entrepreneurial development, QMM, in collaboration with the PIC / World Bank programme and the recent 

created Anosy Regional Affairs Centre (CARA) provides training and support to build competent and qualified local 

businesses. 

The tables below summarize the main achievements of CARA in the field of entrepreneurship: 

Support for entrepreneurship 

Types 2011 2012 

Company 28 48 

Individual company 150 288 

Total 278 335 

Trainings on entrepreneurship 

Modules issued 

Ketrika sy Karoka (Entrepreneurial culture 

and business plan) 

Targets 

Number of 

participants 

Concourents 175 

Entrepreneurial culture Individual 307 

Marketing Individual 224 

Simplified management Individual 215 

Business plan New entrepreneurs 188 

Entrepreneurship (Editing CV and Young job seekers 89 

Covering letter ) 

Cooking 

Restaurant owner/ 70 

hotelier 

Tour Guiding Technique Guides 40 

Total 1308 

208 certificates were 

awarded to companies that 

have successfully completed 

the series of free Business 

Edge training. 

The ceremony was attended 

by the President of the 

Chamber of Commerce and 

Industry of Fort Dauphin. 

12


In terms of employment and micro-business creation, 

2012 major achievements focused mainly on: 

• Support for the improvement of a favorable investment 

and business development climate. The promotion of 

“Ketrika sy Karoka Project” or project contest aiming at 

creating an entrepreneurial culture: 

-- 

489 project leaders 

-- 

300 files selected 

-- 

239 project leaders achieved training 

-- 

170 project leaders favorable for final interview 

This activity was conducted in cooperation with the 

CRD, PIC, EDBM, Port Ehoala, and other partners 

• Supporting the implementation of vocational training 

“Business Edge” 

The expected impacts of these trainings are mainly the 

availability of effective tools in order to: 

• Income increase 

• Mastering activities 

• Support business creation 

• Force position in seeking jobs 

• Best managerial effeciency 

To address employability and strengthen specific 

skills, we support HIMO initiatives in order to improve 

infrastructure. The projects include the rehabilitation 

roads and beautification of the city in diverse sites Fort 

Dauphin. 

In 2013, QMM and GIZ are launching a strategic 

alliance in order to promote business and value chain 

development for the poor in the district of Fort-Dauphin. 

Training Modules 

Number of participants 

• Business plan 

47 

• Control your Costs 

55 

• Plan your Budgets 

56 

• Effective team leadership 

84 

• Motivate your team 

15 

• Improve your customer service 

51 

• Find solutions to your problems 

57 

• Communicate effeciently 

63 

Total 428 

Distribution of participants by profile and training topic 

Themes 

Profiles 

Leading 

effectively 

Motivate 

your teams 

Improve your 

customer 

service 

Communicate 

efficiently 

Solve your 

problems 

Leaders 17 08 11 06 15 

Employees 63 07 37 57 36 

Unemployed 04 - 03 - 06 

Total 84 15 51 63 57 

13


Environment 

Bird Watching days and 

exhibition during the 

World Environment 

Day has interested the 

people of Fort Dauphin. 

• We also opted for an exhibition to 

celebrate the World Environment 

Day on the theme “Green Economy”. 

Simultaneously, we held conferences 

during which we demonstrated the 

involvement of QMM in preserving the 

environment. 

• Finally, we chose a new strategy to raise 

awareness on the protection of frogs 

during the event “Save the Frog Day.” 

We got the contribution of the students 

participating in previous sensitization 

and we asked them to use the knowledge 

acquired to raise awareness and sensitize 

their neighbours. The best performances 

were awarded. 

Rehabilitation 

We have created 4 ha of Mahampy swamps 

on Mandena site. Our attempts to create 

artificial Mahampy marshes have all been 

successful and these 4ha follow other 

similar work. 

We have reforested 70 hectares on Mandena 

site. This reforestation is also within the 

framework of a comprehensive prevention 

strategy against dust generation on the site. 

Finally, we supported the Urban Municipality 

of Taolagnaro to stabilize the slope of the 

edge of the town streets. 

14 

Our three main objectives for 2012 are: 

• Continued work on of rehabilitation on Mandena deposit 

• The implementation of the Action Plan on Biodiversity 

• Updating of the Dina for management of land, water and marine 

natural resources and mineral deposits and around the Port 

d’Ehoala 

Biodiversity 

We have multiplied our event-advocacy for the protection of 

biodiversity and the environment. Our favorite targets were students 

because the preservation of biodiversity richness depends on their 

commitment and environmental quality of the region. We also 

have special exhibits that allowed us to reach a large portion of the 

population of Fort Dauphin. 

Events 

• We organized the Birdwatching Event in partnership with the 

Environmental Platform of Anosy. We have benefitted participants 

a day of observation at Mandena as well as an exhibition on the 

theme of water fowl. It was an opportunity for us to let them know 

the species that may be hunted and should be protected. The 1000 

participants were mostly students in secondary education, but Fort 

Dauphin population was also heavily involved in the events. 

• During a week, we also organized in our halls, an exhibition on 

the occasion of the International Day of Biodiversity. We got our 

visitors familiar with biodiversity on our sites and the surroundings. 

They have also benefited from all the documentation available to 

them. 

Environmental monitoring 

We undertook the monitoring and 

assessment of the biological quality of 

Mandena, Ambato Antsinanana and Petriky 

Protected Areas and to determine the state 

of degradation of coastal forests in our 

avoidance zones and offsets. 

We also keep track of the 11 biological 

indicators stipulated in our set of 

specifications (ESMP). This monitoring 

allowed us to assess the impacts of the 

mine on biodiversity and implement 

corresponding measures required. 

Biodiversity Offsets Programme 

Under the Net Positive Impact on 

biodiversity, we launched the Biodiversity 

Offset Program. The objective is to ensure 

that any residual potential impact being 

eliminated through a compensation system 

similar (Like for like or better). Three Rio 

Tinto offsets sites were selected to be part of 

the programme: 

• Littoral forest of Sainte Luce (Fort 

Dauphin) managed by QMM : 498 hectares 

• Coastal forest of Mahabo (Vangaindrano) 

managed by Missouri Botanical Garden : 

1565 hectares 

• Tsitongambarika III dense forest of low 

altitude (Ivohibe) : about 4000 hectares


Management of these sites will be included in the integrated landscape management 

program. A base of 4 million has been engaged by Rio Tinto for the next three years. 

Industrial environment industriel 

Sustainable management of domestic waste 

Responsible management of waste is one of our priorities. The Urban Municipality of Fort 

Dauphin and QMM and the PIC project developed in the framework of the Public / Private 

Partnership, a waste management project in Fort Dauphin. The town of Fort Dauphin, 

supported by PIC will ensure the management chain garbage collection. QMM will contribute 

to the establishment of a public landfill that meets international standards. 

ISO 14001 Certification 

DNV International audit firm has confirmed our certifications among which the ISO 14001 

environmental certification. This certification we achieved in 2010 identifies us as a company 

whose activities respect the environment and communities. 

Water management 

The establishment of a closed water use process system has allowed us to decrease by 

more than 50% of the raw water sample from the natural drainage system. This positive 

improvement in respect of water resources has been possible thanks to the combined efforts 

of our technicians and experts in effective management of water resources. 

Key issues 

Our efforts remain focused on the involvement of stakeholders in the sustainable 

management and development of land and water resources. 

Our rehabilitation strategy must also take into account the context that will prevail after the 

mine closure 

Other highlights 

• We supported the election and 

installation of new officers of the 

Mandena Management Committee. 

• We participated in the development 

of the national strategy for the 

conservation of Phelsuma (a gecko 

endemic to the region), which was 

held in Fort Dauphin. The workshop, 

which saw the participation of all 

stakeholders, led to a national action 

plan. 

• The Biodiversity Committee meeting 

was held in November. We were able 

to present our programs and strategies 

to the international experts committee 

and realigning in accordance with the 

recommendations made. 

• We worked with 15 students and 

researchers on topics related to 

conservation and biodiversity research. 

• We made a herpetological inventory of 

forest Mahabo. 

More than 200 women from rural towns and Ampasy Nahampoana Mandromondromotra have 

helped to create this swamp on the field of Mandena; according to them the quality of mahampy they 

have collected is really excellent 

Meeting of Biodiversity Committee in November 

15


Operational performance 

Permanent improvement 

Permanent improvement is a concept applied within 

the Rio Tinto Group for several years. The goal is to 

continually increase productivity and efficiency in 

each business unit. The department dedicated to the 

coordination of permanent improvement projects was 

implemented at QMM in 2011. 

It had, at first, to analyze the practices and local culture 

to decide an approach that takes into account the 

maturity of QMM in relation to permanent improvement 

in the context of Rio Tinto. 

Traditionally, permanent improvements were mainly 

machinery and equipment of the Company. But this has 

had no lasting impact on employees. Today, the concept 

focuses on the way to work. This new way of working is 

the participation of the employee in the understanding 

and resolution of key issues. 

We have implemented a strategy based on employee 

involvement and therefore a change in practice and 

culture. We wanted to get employees: 

• working with a sense of priorities and 

• teamworking. 

To do this, we have identified the basic tools and 

practices applicable to suit the maturity of the 

organization. We used these tools in the implementation 

of priority projects in order to create added value: 

• The Project Charter, a document that indicates the 

roles of all stakeholders in the project 

• The Visual Flow Mapping that describes the methods 

of current work identifies the risks and problems that 

may arise and the resources used 

• The RASCI that identifies the level of responsibility of 

the team 

• The Key Performance Indicators that measure 

quantified improvements against targets 

• Other tools more permanent solutions to the problems 

visible (Fishbone, 5 Why) 

This new way of working has enabled us to provide an 

added value of $ 19.7 million against a target of $ 14.6 

for 2012. 

Production 

The global titanium dioxide market has grown 

significantly with the urbanization of China. Although 

forecasts double the market in the next 20 years, 

past experiences show that it is also a market whose 

development is linked to changes in global economic 

activity. 

In 2012, our production has improved by approximately 

24% compared to 2011. Our production scenario is 

determined by demand, whether for ilmenite or zirsill. 

16


17


Economic performances 

The Port d’Ehoala 

The main challenge for the Port Ehoala is to ensure the 

development of various business activities contributing 

to the city and Anosy Region, while ensuring priority 

and quality service for shipments of ilmenite. Despite 

the unfavorable political and social context, the results 

will continue to improve and this year exceeded targets. 

Some of our statistics are presented in the table below. 

Ehoala Park 

Ehoala Park is the economic development zone of 

440 hectares adjoining the port. The study of strategic 

environmental assessment is underway. The detailed 

area planning programme is also under study. We also 

undertake the preparation of the servicing of the first 

subdivisions representing an area of 20 hectares. 

We signed three agreements in principle for significant 

investments that will create jobs: 

• A social project (70 permanent jobs) 

• A project of industrial maintenance (35 permanent 

jobs) 

• A project a proposed relocation of mica and sisal 

products (80 permanent jobs) 

Andriambe career 

Managing the career Andriambe, who provided the 

boulders (granite) needed for the construction of 

the breakwater of the port and other infrastructure 

was transferred to Port Ehoala at the end of phase 

construction. 

In 2012, the World Bank has funded through the PIC 

project construction and rehabilitation of three bridges 

on National Road 13 and the rehabilitation of the streets of Fort Dauphin. The 

Andriambe career assured supply granite of this work. 

Cruise tourism 

2009 2010 2011 2012 

Containers (TEU 1 ) 2 037 5 179 4 642 6 393 

Passengers 0 1 800 5 886 6 034 

Fuel (m 3 ) 5500 12 330 16 717 18 388 

Ship calls 70 120 135 112 

Tonnage total port 136 706 351 618 524 968 677 663 

1 

Twenty foot Equivalent Unit. It is a unit of measuring containers. One TEU represents about 

30 m3 

Since its opening in 2009, the port welcomed 18 cruise ships, which represents 

13720 passengers. In three season’s cruises, the recipe exchange is around one 

million euros divided the restaurants, tour operators, guides, ships agents, car 

rental, taxi, exchange offices, artisans and other local traders. 

The “Committee Cruises’ organized with the leadership of the port is set up for 

preparations of call. The Regional Tourism Office, the Chamber of Commerce 

and Industry, tour operators and members of the private sector in the field of 

tourism undertake alongside Port d’Ehoala to accommodate cruise ships and 

generate a home quality. The aim is to retain the owners so they always put the 

Port d’Ehoala in their catalog. This preparatory work is the means of sustainable 

tourism development in Fort Dauphin. 

18


The Port d’Ehoala 

on all fronts 

Contributions to 

the economy 

Our main contributions to the Malagasy economy affect the taxes 

we pay to the Malagasy government. We also record our few assets 

11,000 jobs that our presence has generated as well as income 

generated by our contractors. Below are statistics on taxe for the year 

2012. 

The port does not exclude any field when it comes to 

play its role as an engine of development. Sensitive to 

social problems of its neighbours, it has made available 

to fishermen and residents a fire hydrant. Water is 

drained from the water pipeline QMM and Port Ehoala. 

This supply of water directly on the fishing is very 

popular with the community. 

Payroll taxes 

Mining royalties 

TFT et IBS of non resident 

companies 

Custom duties 

Other taxes 

$5,5 millions 

$4,5 millions 

$3,5 millions 

$2,4 millions 

$3,8 millions 

In the field of Malagasy and international musical 

culture, Port Ehoala initiated the coming Madajazzcar 

Festival in Fort Dauphin for the fourth consecutive year 

since the opening of the port in 2009. 

In sports, the port is sponsoring a youth football club 

and an Aikido club for members to engage in good 

conditions of work for the good of everyone. 

19

Rio Tinto 

Rio Tinto 

QIT Madagascar Minerals. QIT Madagascar Minerals 

Villa 3H – Lot II J 169 

Mandena 

Ivandry BP 225 

BP 4003 

614 Fort-Dauphin 

101 Antananarivo Madagascar 

Madagascar 

T +261 20 22 425 59 T +261 20 92 210 26

Sustainable development Report 2012 - Rio Tinto - Qit Madagascar ...

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