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March 31 (Reuters) - The new army-backed president of Madagascar, Andry Rajoelina, said on Monday his administration was reviewing all contracts with foreign investors because the country was receiving too little revenue. These are the major projects in the island's important mining sector: RIO TINTO <RIO.L> <RIO.AX> A subsidiary of British-based multinational Rio Tinto is leading Madagascar's most advanced mining project. It began producing ilmenite in January, 2009. The project is known as QMM mineral sands and is situated just outside the southern town of Fort Dauphin. Rio Tinto Iron & Titanium, part of the world's fourth-biggest diversified mining group, owns 80 percent of the development in the south of the Indian Ocean island. The Madagascar government owns the rest. The potential is 2.2 million tonnes per year. Ilmenite is used in the manufacture of paint pigments and plastics industries. SHERRITT INTERNATIONAL <S.TO> Canada's Sherritt International holds the biggest stake in a nickel and cobalt operation that is likely to be one of the world's largest nickel mine when complete in 2010. The mine is situated in Ambatovy, about 80 km (50 miles) east of the capital, Antananarivo, and is projected to produce 60,000 tonnes of nickel annually for 27 years. Sherritt owns 40 percent of the operation. Other stakeholders are; Japan's Sumitomo Corp <8053.T>, South Korea's state-run Korea Resources, each with 27.5 percent, and Canada's SNC Lavalin Group <SNC.TO> (5 percent). In February, Sherritt said capital costs for the project had leapt to $4.5 billion from a previous estimate of $3.4 billion. Company Chairman Ian Delaney said the company could no longer pay the costs to build the mine as nickel prices had slumped. EXXARO <EXXJ.J> A pre-feasibility study by South Africa's Exxaro has confirmed a large reserve of ilmenite between Toliara and Marombe in southwest Madagascar. The company hopes to start mining a projected 560,000 tonnes per year by 2014. RED ISLAND MINERALS The Perth-based company is exploring for coal in Sakoa, southern Madagascar. The deposit is estimated at more than 100 million tonnes. Singapore-listed Straits Asia Resources <STRL.SI> has acquired 33.5 percent of Red Island Minerals' stake in the project for $92 million. (Writing by Richard Lough in Antananarivo; Editing by Helen Nyambura-Mwaura) ((Email: nairobi.newsroom@reuters.com; tel: +254 20 222 4717)) (For full Reuters Africa coverage and to have your say on the top issues, visit:http://africa.reuters.com/) Keywords: Keywords: MADAGASCAR POLITICS/PROJECTS |