Posted on 04 Nov 2024
Japan’s Sumitomo Corp has resumed production at its Ambatovy nickel and cobalt project in Madagascar after a pipeline issue halted production in September, Kallanish Power Materials learns.
Due to damage, the company shut down a pipeline supplying hydrated ore from the mine to a processing and refinery plant last month. In its results presentation on Thursday, Sumitomo said production was resumed at the project under “close monitoring” at the end of last month. However, the Japanese firm is currently reviewing future production plans at the mine.
“As a shareholder of this project, we will keep considering all options to identify the best policy going forward for all related stakeholders, incorporating the social importance of this project and our responsibility as well as the recent market environment,” the company adds.
The Japanese firm only produced about 10,000 tonnes of nickel in the six months from April to September – half of last year’s production for the same period. It attributed the production decline to a utility plant issue at the end of last December.
Ambatovy is one of the world’s largest nickel projects with an annual production capacity of 40,000 t of nickel and 4,000 t of cobalt. Sumitomo owns a 54.2% stake in the project companies, Ambatovy Minerals and Dynatec Madagascar. The remaining interest is owned by Korea Mine Rehabilitation and Mineral Resources (KOMIR).
The company posted a net profit of JPY 254 billion ($1.7 billion) for the six months to September, down around 11% year-on-year. Sumitomo maintains its net profit forecast for the year ending March 2025 at JPY 530 billion.
Source:Kallanish Power Materials
