ASX- and Aim-listed mineral sands producer Base Resources on Thursday announced that some activity at its Toliara project had been suspended by the government of Madagascar, pending the finalisation of discussions on fiscal terms applying to the project.
Base confirmed that the suspension would not impact on the company’s progression of a definitive feasibility study (DFS), since all on-ground works for the study had been completed.
The DFS will be released in December.
However, the suspension would impact on the community development programmes that were under way and the several hundred local Malagasy people who were undertaking training programmes with the Toliara project.
“The Toliara project enjoys broad community support, locally, regionally and nationally, as the significant economic and social benefits are clear. While there were some early community protests, these have dissipated with an extensive communication programme better explaining the project and the opportunity it represents.
“The few more recent localised events have represented illegal actions by a small minority that were dealt with by the Malagasy legal system. It is, therefore, disappointing that the Malagasy government has now stated this as a justification for requiring a suspension,” said Base.
The company would continue to engage in a transparent and respectful dialogue with government to deepen its understanding of the significant benefits of the project to Madagascar and secure agreement on mutually beneficial fiscal terms that represent a sound and sustainable basis on which the Toliara project may proceed to development.