The proposed dune mining project on South Africa’s Wild Coast appears to have been put on hold for the moment but, in the meantime, another mineral sands project, this time in Madagascar, is about to start producing ilmenite, according to a report in Business Report last week.

The mining area is estimated to hold 75 million tons of ilmenite deposits, enough to sustain mining operations for about 40 years. The first shipment will take place in the first quarter of next year, according to the BR report.

Mining investment is seen as a way to alleviate poverty on the island, known for its many unique plant and animal species, but environmentalists have expressed concerns about the sustainability of this development path. Similar concerns have been raised about the proposed mining project on the Wild Coast.

Environmental issues have been a significant obstacle in the development of Rio Tinto’s QIT Madagascar Minerals (QMM) project, Gary O’Brien, QMM’s president, was reported as saying in BR.

Massive investment
The $1-billion mining project near Fort Dauphin in south-eastern Madagascar is reportedly the largest investment in the island’s history and will be a catalyst for broader economic development. Rio Tinto also says the mine is a model for further projects likely to follow in Africa and the developing world because of the care it has taken in managing the social and environmental impacts.

Research commissioned by Friends of the Earth in 2007 found that the mining project – which is 80 percent owned by Rio Tinto and 20 percent by the Madagascar government and has received World Bank funding – was failing to deliver sustainable development.

“Rio Tinto claims that the Madagascar mine development is whiter than white, designed to benefit local people and preserve the unique natural environment. But the new research tells a very different story. The reality on the ground is a murky shade of grey, with local people losing their land and livelihoods whilst receiving negligible benefits from the project in return,” Friends of the Earth’s corporate campaigner Sarah-Jayne Clifton said in a press statement on the release of the report last October.

World Bank standards
Rio Tinto responded to the criticisms on its website, stating: “While we face enormous challenges to get it right, we are satisfied that our management of the project is setting new benchmarks in responsible mining practices.” The company added that “Rio Tinto’s conduct is subject to World Bank standards which are rigorously monitored by competent regulatory agencies.”

But Friends of the Earth has concerns about the World Bank funding mining projects as a way to alleviate poverty. It urged the World Bank to act to ensure standards were being implemented on the ground in Madagascar and to call a halt on investment in future mining projects because evidence shows that they are failing to deliver sustainable development.

A recent report by AFP said the massive mining project had “knocked sideways” the sleepy fishing town of Fort Dauphin, doubling its population in three years and causing the prices of food and rent to rise by up to 40 percent. On the other hand, the report said that the investment had brought hope to the area, and improved the transport infrastructure and hotel industry. But there was also concern that many of the new businesses would not last over the longer term, the report said. And local fishermen claimed the mining was affecting their livelihood.

The Madagascar government has reportedly thrown its weight behind mining as a way to alleviate poverty on the island. A spokesman told AFP that a suitable balance had been found between the preservation of biodiversity – which is also the island’s main tourism asset – and the development of the mining industry.

Forest rehabilitation
Ilmenite, which is used in the manufacture of titanium dioxide, a white pigment used in a range of products from toothpaste to paint, is extracted by dredging mineral sands. This will result in the destruction of about 1,000 hectares of rare coastal forest.

Rio Tinto says on its website that it plans to rehabilitate the area when the dredging is complete. It says people from non-governmental organisations were hired to develop a credible biodiversity programme. And an independent biodiversity committee made up of Madagascar experts is advising the company on the rehabilitation of the indigenous forest.

Rio Tinto’s South African interests include a 50 percent stake in Richards Bay Minerals, which in the 1990s had tried to mine the dunes in St Lucia, KwaZulu-Natal.