Sumitomo reports further $289 mln impairment for Ambatovy nickel-cobalt asset

January 26, 2021 / www.metalbulletin.com / Article Link

Japan's Sumitomo has written down a loss of 30 billion yen ($289 million) at its Ambatovy nickel-cobalt asset in Madagascar, in addition to the separate 55 billion yen ($530 million) impairment announced in the middle of last year, according to a company statement dated January 25, 2021.

This was the latest in a series of difficult events for Ambatovy, which has been out of the market since March 2020. The latest impairment charge related to the October-December quarter last year, which was the third quarter of Sumitomo's 2020 financial year.
"Considering Ambatovy's past production performance, including the current shutdown, scrutinization and adjustment to the business [and] production plan has been performed to reflect a more reliable [and] stable operation after restart," Sumitomo said in the release.

"As a result, an additional impairment loss on the [project's] fixed assets will be booked," it added....

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