Sumitomo Corp Resumes Production at Ambatovy, Adjusts Nickel Output Outlook

Forex - Japanese trading company Sumitomo Corp announced that it has resumed production at the Ambatovy nickel and cobalt project in Madagascar at the end of October, following a pipeline issue that occurred a month ago, but is reviewing future production volumes.

Sumitomo has been struggling to stabilize production and increase profitability at the Ambatovy project, which began operations in 2005. The company stated today that the project produced approximately 10,000 tons of nickel during the April-September period, which is equivalent to half of the volume from the same period a year ago, while it did not provide a full-year production forecast that is under review.

Previously, the company expected to produce 35,000 tons of nickel annually at Ambatovy by March 31. In its financial results presentation, Sumitomo said, “As a stakeholder in this project, we will continue to evaluate all options to determine the best policy for all stakeholders moving forward.”

For the six-month period ending in September, the company recorded a net profit of 254 billion yen ($1.7 billion), a decrease of 11% compared to the same period last year, which was partly affected by weak coal prices. In the April-September period of last year, Sumitomo's net profit was 285 billion yen. The company did not change its net profit forecast for the financial year ending in March 2025, maintaining it at 530 billion yen.