Sumitomo Resumes Production at Ambatovy Nickel and Cobalt Project

Japanese trading house Sumitomo announced on Thursday that it had resumed production at the Ambatovy nickel and cobalt project in Madagascar at the end of October, following a pipeline issue in September. While production has restarted, the company is currently reviewing future output volumes.

Sumitomo has faced challenges stabilizing production and improving profitability at Ambatovy, a project launched in 2005. Between April and September, the project produced about 10,000 metric tons of nickel—half of the volume produced during the same period last year. The company did not provide a full-year output forecast and mentioned that the previously expected annual production of 35,000 tons by March 31 is under review.

Sumitomo holds a 54.2% stake in the Ambatovy project, which includes Ambatovy Minerals, a mining company, and Dynatec Madagascar, a refining company. The remaining stake is owned by Korea Mine Rehabilitation and Mineral Resources. Sumitomo indicated that it would consider all available options to determine the best path forward for all stakeholders involved.

Financially, Sumitomo reported a net profit of 254 billion yen ($1.7 billion) for the six months to September, an 11% decrease compared to the same period last year. This decline was partly attributed to weaker coal prices. The company maintained its net profit forecast of 530 billion yen ($3.5 billion) for the fiscal year ending March 2025.