Madagascar’s extractive industry has received a significant boost with the gradual resumption of operations at Ambatovy, one of the country’s largest mining projects. After several months of disruption caused by damage from Cyclone Gezani, the company has announced the restart of nickel and cobalt production at its processing plant in Toamasina.
The restart comes at a crucial time for Madagascar’s economy, as the mining sector remains a key contributor to export revenues and economic growth. The temporary suspension of Ambatovy’s activities had a notable impact on the country’s mineral exports during the first quarter of 2026. According to industry data, cobalt exports fell by 26.8%, while nickel exports declined by 1%, largely due to the interruption of production and export operations.
Despite these challenges, Ambatovy has maintained its long-term strategic objectives. The company is now focused on progressively restoring operations to full production capacity while prioritizing safety, operational stability, and sustainable business practices. Ambatovy emphasized its commitment to generating lasting economic benefits for Madagascar through export earnings, tax revenues, local employment, and support for domestic suppliers and contractors.
The resumption of production is also expected to strengthen Madagascar’s external trade performance. Although mining exports increased by 14% in volume during the first quarter of 2026, driven mainly by higher exports of titanium and mica, the return of the country’s leading nickel and cobalt producer is likely to further boost foreign exchange earnings in the coming months.
Widely regarded as the largest industrial investment in Madagascar’s history, Ambatovy operates one of the world’s largest lateritic nickel deposits. The project includes mining operations near Moramanga and a processing and refining facility close to the Port of Toamasina, enabling the export of refined metals to international markets.
The restart of Ambatovy’s operations comes amid strong global demand for nickel and cobalt, two strategic minerals that play a critical role in the production of electric vehicle batteries and other clean energy technologies. As the global transition toward sustainable energy accelerates, the recovery of Ambatovy’s production could enhance Madagascar’s position in the international critical minerals market while supporting the long-term growth of the country’s extractive sector.
