Sumitomo to book additional 30bn yen impairment on Madagascar nickel project

Ambatovy nickel-cobalt mine in Madagascar. (Image courtesy of Sherritt International Corp.)

Sumitomo Corp said on Monday it will book an additional impairment loss of about 30 billion yen ($289 million) on its Ambatovy nickel project in Madagascar for the October-December quarter to reflect the revised output plan.

The Japanese trading house, which owns a 54.17% stake in the project, posted an impairment loss of 55 billion yen for the April-June quarter last year because of the suspension of the mine’s operation amid the COVID-19 pandemic and its downward revision of nickel price outlook.

Sumitomo’s annual net loss of 150 billion yen for the year to March 31, 2021, will remain unchanged, it said.

($1 = 103.7700 yen)

(By Yuka Obayashi; Editing by Tom Hogue)

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