IS GOLD VALUE ADDITION POSSIBLE IN MADAGASCAR?

Mining area

Gold is a precious metal of great economic value. This has prompted our research to reflect on the exploitation and valorization of this resource in Madagascar, which continue to grow and takes an important place in the world economy. In Madagascar, the gold marketed is greater than or equal to 18 Karat (Kt) of purity. This threshold is the basis for calculating the fees withheld by the Administration. Whereas, according to the gold regime, gold can only be exported at 24Kt of purity. In order for gold production in Madagascar to be appreciated in both quantity and quality in the years to come, value addition based on gold refining method represents an additional process to be brought to the product for a better contribution to the State’s coffer. The objective of this paper is to study the possibility of gold’s added value considering its quality as main parameter. The study consists of determining the gap in the mining royalties of gold export (2016-2020), taking into account the price of gold by different purity rate. The main results concluded that taking into account the quality (24Kt of purity) of gold would contribute to an increase of around 25% of mining royalties. Conversely, this proportion constitutes the gap in mining revenue, which corresponds to an amount of approximately 1.36 million US Dollars (USD) during the period from 2016 to 2020.

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