Rio Tinto, Madagascar reach agreement on long-term operation of QMM

Rio Tinto and the Government of Madagascar have reached an agreement on future tax arrangements for QIT Madagascar Minerals, or QMM, and renewed their long-term partnership for the sustainable operation of QMM’s Fort Dauphin mine, Madagascar, the company announced. “The new agreement was confirmed by the High Constitutional Court of Madagascar on August 8, 2023 and signed by the parties on August 22, 2023. It will improve the benefits received by the people of Madagascar and support a sustainable future for the QMM mine, bringing to Rio Tinto certainty on fiscal arrangements. Under the terms of the agreement, the royalty rate will increase from 2% to 2.5% and QMM will pay its first dividend to the government of Madagascar in 2023. An amount equivalent to the dividend of US$12 million will be invested by the government Madagascar in the rehabilitation project of 109 kilometers of the National Road 13. Rio Tinto will also contribute US$8 million to the road project, subject to meeting predefined milestones and deadlines,” the company stated.