Sumitomo's Madagascar nickel-cobalt project Ambatovy remains shut due to cyclone damage

About this update from Sumitomo Chemical India Ltd.

Japan's Sumitomo Corp TSE:8053 said on Wednesday that its Ambatovy nickel and cobalt project in Madagascar remains shut after Tropical Cyclone Gezani struck the island last week, causing damage to facilities.Operations were suspended as soon as the cyclone's approach became evident, with safety the top priority, the company said in a statement. It added that the extent of damage, including the condition of equipment, and the impact on earnings are currently being assessed in detail.Sumitomo will endeavour to swiftly ascertain the extent of the damage and collaborate with all relevant parties to implement appropriate measures for recovery and reconstruction, it added.The timing of a restart is yet to be determined, a company spokesperson said, adding that it is expected to take several weeks to assess the extent of the damage. Traders said last week that the cyclone had halted production at Ambatovy, adding that a prolonged outage could lift prices of the battery material.Ambatovy, owned by Sumitomo and state-owned Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR), produced around 28,000 metric tons of nickel in 2024 and roughly 2,500 tons of cobalt.

View stock analysis, news, and events for Sumitomo Chemical India Ltd.