TOKYO (Reuters) -Japanese trading house Sumitomo Corp said on Thursday it had resumed production at the Ambatovy nickel and cobalt project in Madagascar at end-October after a pipeline issue a month before, but is reviewing future output volumes.
Sumitomo has been struggling to stabilise production and improve profitability at the Ambatovy project, which launched in 2005.
The project produced about 10,000 metric tons of nickel in April-September, or a half of the volume in the same period a year ago, the company said on Thursday, without providing a full year output forecast, which it said is under review.
It had earlier expected annual nickel production at Ambatovy of 35,000 tons for the year to March 31.
Sumitomo owns a 54.2% stake in the project companies – Ambatovy Minerals, a mining company, and Dynatec Madagascar, a refining company – while the remaining stake is held by Korea Mine Rehabilitation and Mineral Resources.
“As a shareholder of this project, we will keep considering all options to identify the best policy going forward for all related stakeholders,” Sumitomo said in its financial results presentation.
The company posted a net profit of 254 billion yen ($1.7 billion) for the six months to September, down 11% from the corresponding period a year ago, partially hit by weak coal prices.
In the April to September period last year, Sumitomo’s net profit was 285 billion yen. The company kept its net profit forecast for the fiscal year to March 2025 unchanged at 530 billion yen.
($1=152.8900 yen)
