Friday, 20th January 2006 (3422 views)

Madagascar is rapidly emerging as a destination for gold miners, claimed news agency Reuters today.

The island off the coast of Africa, though largely unexplored, is thought to have high, untapped deposits of gold, platinum and other precious gems.

Until recently, most gold exploration centred on sites discovered by the French early last century.

However, local residents have recently found gold deposits in Maevatanana, a city north of the country's capital Antananarivo.

Changes in policy following the introduction of a new government on the island, have led to foreign investors eyeing up the potential of this largely untapped market.

Australian geologist, Brian Thiele, commented: "In this area there has been no scientific study, yet it is clearly gold-rich and has produced some tens of thousands of ounces already.

"Full credit to the local miners - they found this area, we simply followed them."

Unfortunately, trade on the black market is presently rife in Madagascar, so one has no way of knowing how much of the $100 million industry is legitimate.

It is consequently estimated that a good deal more than the official figure of 10 kg of gold leaves the island each year.

However, energy and mines minister Olivier Donat Andriamahefamparany, hopes to push through new laws later this year, minimising bureaucracy and attracting foreign investors to the island.

 

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