This paper studies an industrial development project in the south east of Madagascar. For twenty years now, the QIT Madagascar Minerals S.A. (QMM) Corporation has been studying the feasibility of mining high-grade ilmenite mineral sands close to Tolagnaro. Concerns have been expressed as regards the economic, environmental, and social impacts of mining in that area. However, without mining operations and related infrastructure programs, the area has limited potential for economic development. This paper explores the policy and economic issues confronting Sub-Saharan African countries in general and Madagascar in particular. Based on a political economy approach, this study not only identifies the mechanisms by which the project succeeded in including environmental protection and poverty alleviation criteria in addition to economic growth, but also points out some of the potential obstacles to its implementation.