Environment

GRAPHITE AT A SACRIFICIAL PRICE: COMMUNITIES IN DISTRESS

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Published on 2/5/2025
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While Madagascar is climbing to second place in the world rankings for graphite exports, the inhabitants of graphite mining areas are paying a heavy price. The hope for sustainable development is being undermined by severe environmental and cultural degradation: agricultural land destroyed, water pollution, sacred lands and ancestral burial sites invaded by graphite mining. Promises of compensation and social progress remain unfulfilled, leaving the local population vulnerable, seeking answers and justice…

 

Sahavalaina-Vatomaina, a silent victim of the graphite boom

 

In eastern Madagascar, 10 km from Brickaville, the modest fokontany of Sahavalaina stretches majestically across the green hills of the rural commune of Ambinaninony, in the district of Brickaville. This region is notable for its significant graphite reserves, particularly in Vatomaina. In 2015, the British company Tirupati Madagascar obtained a research permit, quickly followed by the granting of mining permit No. 38321 by the Ministry of Mines, valid for 40 years. This permit also allows the company to mine gold, chromium, crystal, copper, basalt, and beryl.

One year later, the National Office for the Environment (ONE) issued the environmental permit under reference number 29/16/MEEF/ONE/DG/PE on October 10, 2016. Tirupati Graphite Madagascar operates two sites: Sahamamy and Vatomaina. The company aims to produce 30,000 tons annually, a target that has not been achieved yet. According to Harizo Sataherimanana, operations manager at Tirupati Madagascar, “current annual production is around 9,000 tons.”

In Vatomaina, out of the 2,500 hectares that could potentially be exploitable, 157 hectares have been contracted out. However, only 4 hectares have been farmed so far. These operations have already caused environmental damage, including the silting up of rice fields, water pollution, and the destruction of landscapes. The impact of exploitation on the local ecosystem and agricultural activities is now tangible.

 

From rice to sand: graphite mining turns a community’s life upside down

 

In Vatomaina, community life is closely linked to the land, shaped by the rhythm of the harvests. However, since Tirupati began its activities in 2021, this harmony has been disrupted. Farmers such as Angeline, known as “Maman’i Ange,” a 59-year-old mother of four children, have seen their ancestral lands devastated. Two of her three rice fields are now buried and virtually uncultivable. She also laments the loss of a vital source of income to feed her family. “Each of my rice fields produced 75 cans of rice annually, or 35 bags. That was equivalent to 1.75 tons per year. One can of rice brings in about MGA 38,000.” For this resident of Vatomaina, the damage is directly attributable to ”the opening of an access road to the Tirupati site and the destruction of a dam”, as a result of the company’s mining activities. Harizo Sataherimanana, operations manager at Tirupati, rejects these allegations. “It is impossible that the sanding of the rice fields, located ten kilometers from the site, is linked to the company.” He claims that Tirupati has not worked on these plots and attributes the situation directly to “a lack of maintenance by the owner.” Madame Angeline’s situation is not an isolated case. A 1-hectare plot belonging to Sampivavy Noeline and her son Dimansy Velomaro suffered the same fate. Rice, cassava, lychees, bananas, cinnamon, and 134 raffia shoots, listed in the compensation report of the regional management of agriculture and livestock (DRAE), were destroyed. “We explained our losses, they were listening, but did nothing. No action, no solution,” Todivavy Justine reports, one of many victims in Vatomaina.

 

Tirupati, still speaking through Harizo Sataherimanana, continues to deny any responsibility. According to him, the destruction of the dam, which caused considerable flooding, was due to severe weather conditions. “In the face of natural disasters, it is unfair to look for someone to blame. We can’t do anything against nature,” he states.

Nevertheless, a formal complaint regarding the destruction of the dam, dated May 23, 2023, was filed with the National Environment Office (ONE). Tsilavina Rabefarihy, head of the USIDE unit at ONE, confirms that Tirupati’s mining methods, particularly the use of open-pit mechanized equipment in the form of terraces, contribute to soil degradation. The destruction of trees makes the soil prone to landslides, thereby affecting non-contracted plots. Following ONE’s recommendations, Tirupati has introduced the use of bamboo to stabilize the soil, but this method is still only applied in a fragmented manner.

 

Insufficient compensation or broken promise?

 

Faced with destruction, fair compensation is required. This is what the peasant farmers of Vatomaina are demanding. For example, Dimansy Velomaro, owner of a 13-hectare plot, received compensation only for his 10 hectares (1,000,000 Ar/ha) and MGA 360,000 for his rice harvest in 2023, and then nothing more. Sampivavy Noeline is requiring payment for her raffia omitted by Tirupati and is also imploring for compensation for her rice fields, as in her opinion, the compensation does not reflect the real value of her crops. For her part, Maman’i Ange feels, like the other peasants farmers, abandoned with destroyed land and is asking the company to compensate them for the price of their annual crops.

Nevertheless, Tirupati questions the allegations made by the peasants of Vatomaina. In his defense, Harizo Sataherimanana refers to a certain “insidious nature” of the peasants who, according to him, ould have been docile and cooperative during face-to-face negotiations, but speak ill of the company behind the scenes. He goes on to say that a sum of MGA 2,126,250 has already been allocated to Mrs. Noeline as compensation for her paddy.

 

The dissolution of the compensation committee

 

The persisting tensions between the peasants and Tirupati are frequently brought before the commune’s compensation committee, a crucial mediation body. This committee brings together key actors: representatives of the commune, the fokontany chiefs of Sahavalaina, Tanandava, and Ambinaninony, as well as the respected “Tangalamena.” Alfred, a municipal councilor for the commune of Ambinaninony, confirms that “the peasants unanimously express their dissatisfaction with the compensation offered by Tirupati, which they consider unfair.” He highlights that, “despite the existence of an agreement between the company and the residents, significant amounts remain unpaid, as evidenced by the 130 raffia shoots owed to Mrs. Noeline.” Beyond its mediation role, the committee is also responsible for evaluating crops. However, it held its last meeting in June 2023, shortly before its dissolution. Tsilavina Rabefarihy of ONE reiterates in his remarks that this committee is indeed required in the specifications but in practice, it is not operational and apparently dissolved. He goes on to say that the company has requested that this committee be reinstated to ensure the monitoring and evaluation of compensation.

 

According to information gathered in Vatomaina, members of the compensation committee requested an increase in their allowances, a request that was rejected by the Tirupati company. It was specified that the “Tangalamena” received a daily allowance (per diem) of MGA 15,000 for each trip to the field, while representatives of the communes and fokontany received MGA 20,000.

As a result of the dissolution of the compensation committee, the company requested the intervention of the DRAE in the Atsinanana Region to inspect and assess the affected crops. The Regional Director of Livestock and Agriculture in Atsinanana, Dr. Solo Noe René, confirmed that Tirupati was covering all expenses related to the travel of their agents during field missions. The Tirupati operations manager even provided the exact amounts allocated for this purpose: MGA 100,000 per day per person for daily allowances, as well as MGA 20,000 for travel expenses.

 

Challenging dilemma

 

Despite tense relations with local communities, Tirupati’s role in local development and the economic benefits of its activities in the municipality remain undeniable. Rahul Jha Jn Jha, project manager at Tirupati, reaffirms the company’s commitment to sustainable development. For example, Tirupati actively participated in the earthworks for a plot of land and invested MGA 100 million in the construction of a new gendarmerie office, thereby responding to an explicit request from the municipality of Ambinaninony. This request, which normally falls under the responsibility of local authorities, was taken on by the company. In addition, Tirupati contributed to the construction of a 44 km road, complete with 19 bridges, opening up access to Sahamamy, a previously isolated area. With regard to access to drinking water, despite the lack of adequate infrastructure, a representative of the Fokontany and a municipal counselor confirmed the company’s efforts to ensure the supply of drinking water to residents.

Unfortunately, Tirupati’s operations manager revealed financial difficulties in recent years. Tirupati now hopes that the Malagasy government will reimburse the VAT, amounting to $1.8 billion, in accordance with Article 06.01.24 of the General Tax Code in force in Madagascar: “This substantial sum could contribute significantly to the proper payment of compensation owed to peasants, while allowing Tirupati to continue its activities and maintain its social initiatives.”

 

By Antsamalala Felana Fitiavana and Ismaël Mihaja