QIT Madagascar Minerals (QMM), which is 80% owned by Rio Tinto and 20% owned by the Government of Madagascar, has built a mineral sands mining operation near Taolagnaro at the south-east tip of Madagascar, supported by the WB. QMM intends to extract ilmenite and zircon from heavy mineral sands over an area of about 6,000 hectares along the coast over the next 40-50 years.

This is one of the most ecologically diverse regions of Madagascar, but also one of the poorest and most isolated. Eighty-two per cent of Anosy inhabitants live below the poverty line (US1$/day) and the regional population is expected to double by 2020.

The Rio Tinto QMM project got the 'go-ahead' from Rio Tinto in August 2005 and construction started in January 2006. It displaced local people from their land and requires the removal of rare fragments of coastal littoral forest and heathland found only in Madagascar.

Many local people have little or no knowledge of the dramatic changes taking place and the reasons for them. Differences of understanding about the project have already led to conflict and mistrust, which have been further compounded by the lack of communication. The social, environmental and economic upheaval caused by the project affects different stakeholders in different ways.

The most important direct negative biodiversity impact resulting from Rio Tinto/QMMs activities is the loss of littoral forest habitat at Mandena, Petriky and Sainte Luce. Approximately 1,665 ha is expected to be lost to dredging, which entails not only clearance of vegetation but also removal of soil and its constituent seed bank.

In addition, many social conflicts were identified and observed on the ground. Property prices and rents have increased dramatically along with the cost of food, medical treatment and energy. Inflation has severely affected the livelihoods of most Taolagnaro inhabitants and some long-term residents were leaving town.

Just 10% of the Malagasy population hold official title to their land, with most holding customary land rights that are afforded a lower legal status despite having been held for generations. Changes to local property ownership as a result of the project were extended significantly by the measures of the Integrated Growth Poles project and revision of the land laws. This has affected local peoples ownership of their homes, and their ability to own land in future.