Sumitomo finances Ambatovy stake sale to exit project
Geopolitics · Kitco ·
Sumitomo Corp provided financing to the buyers of its 54% stake in Madagascar's Ambatovy nickel operation, smoothing its exit from the loss-making project, sources told Reuters. The Japanese trading house, which invested $3 billion over two decades and booked $2.5 billion in cumulative losses, said on May 1 it would take a $418 million hit from the deal. Sumitomo funded the transaction while retaining certain nickel offtake rights, underscoring the challenges Western and Japanese firms face competing in nickel against lower-cost Indonesian supply.