In a press release issued on February 18, Ambatovy admits that its bank accounts are blocked following court decisions against it. In a case that opposes it to a former employee of Ambatovy, the company has always lost and must immediately pay 88 million Ar to this former executive of the company who filed a complaint for unjustified dismissal. Ambatovy has appealed and says it is ready to file an action with the Court of Cassation, to go as far as international arbitration if necessary. For the moment and knowing a more than gloomy context of the world market for raw materials, Ambatovy is still in difficulty. In addition, its cargo of nickel, which must be exported, has been blocked at the port of Toamasina for several days. Likewise, its shipments of raw materials and spare parts are no longer accepted by shipping companies. All this because of the implementation of the Advance Cargo Declaration (ACD), the new tax instituted by an order from the Ministry of Transport and a circular from the Maritime and River Port Agency (APMF). Ambatovy believes that the ACD should not apply to Ambatovy, under the provisions of the Law on Large Mining Investments or LGIM. Ambatovy asks to meet the President of the Republic.
Ambatovy declares that it cannot be subject to legal or regulatory provisions subsequent to the 2007 Eligibility Decree and which would have the effect of increasing tax or customs charges. Despite this, shipping companies no longer accept cargo from Ambatovy unless the company complies with ACD requirements, claiming to receive conflicting orders from APMF and higher authorities.
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— Randa Kasssieh Wed Dec 30 19:01:36 +0000 2015
In December 2015, the Minister of Mines and Petroleum confirmed in writing to shipping companies that they should not apply the provisions of the ACD to Ambatovy according to the LGIM. Ambatovy notes that fiscal and legal stability enshrined in law was a decisive factor when Ambatovy shareholders decided to invest in Madagascar, an investment now totaling more than $8 billion. Ambatovy is largely dependent on the import and export of goods and raw materials in order to carry out its business, the application of ACD to Ambatovy will represent additional and unexpected costs of several tens of millions of dollars on the project duration. In addition, the blocking of containers at the Port means that Ambatovy no longer has any income and its cash flow, already very weak and affected by the lowest nickel price in history, is increasingly critical. Ambatovy can only survive for about a week under current circumstances.
