Energy Fuels has signed a Memorandum of Understanding (MOU) with the Government of Madagascar, outlining key terms for the Toliara Project in southwestern Madagascar.
This project focuses on titanium, zirconium, and rare earth elements (REEs).
On November 28, 2024, Madagascar’s Council of Ministers, chaired by the President, lifted the suspension on the Toliara Project that had been in place since 2019. This move provides renewed momentum for economic activity in Madagascar.
As part of the agreement, Energy Fuels will contribute significantly to Madagascar’s development. Commitments include a 5% royalty on mining products and $80 million in social and community funding after project certification. This funding will include $30 million within 30 days of certification, $10 million after a positive final investment decision (FID) within the next 14 months, and an additional $40 million over the first four years of operations.
The company will also invest $1 million in community projects before the FID and allocate $4 million annually for such initiatives during construction, with adjustments for inflation.
The project’s economic impact extends beyond community investments. It promises job creation, local business growth, and enhanced revenue through the 5% royalty on mining products.
With Madagascar’s government securing fiscal and legal stability under the MOU, the country stands to attract further large-scale investments in its mining sector.
This agreement presents numerous benefits and opportunities for Madagascar’s economic development, community well-being, and global positioning in the critical minerals sector.
The Madagascar government has pledged to facilitate administrative processes, support the project’s timely development, and uphold fiscal and legal stability. It will also amend relevant laws in consultation with stakeholders to ensure the project’s bankability.
Energy Fuels views the Toliara Project as a “generational” opportunity that could position Madagascar as a critical player in the global mineral market while delivering lasting benefits to its people.
