Japan's Sumitomo Corp to exit Ambatovy nickel project in Madagascar

Sumitomo

01/05/2026 07:28

TOKYO, May 1 (Reuters) - Japanese trading house Sumitomo Corp 8053.T said on Friday it had decided to divest its 54.17% stake in the Ambatovy nickel project in Madagascar.

       Below are transaction details disclosed by Sumitomo Corp:

Sumitomo Corp has been a shareholder in the Ambatovy project since 2005, holding a 54.17% stake in Ambatovy Minerals S.A., a nickel mining company, and Dynatec Madagascar S.A., a nickel refining company

Korea Mine Rehabilitation and Mineral Resources Corporation holds a 45.82% stake in both companies

Sumitomo's board of directors on Friday decided to transfer all the company's shares in the project to Ambatovy Mineral Resources Investment Holding Company, headquartered in Jersey, Britain

As a result of the transaction, Sumitomo Corp expects to record a loss of around 70 billion yen ($445.1 million) in the consolidated financial results for the first quarter of the fiscal year ending next March

Shingo Ueno, Sumitomo Corp's chief executive officer, told a briefing that the company has found a buyer with nickel expertise after concluding the sale was the best option for the project

Sumitomo Corp plans to close the transfer during the first half of the fiscal year ending next March and has already incorporated the impact into the consolidated earnings forecast, it said

($1 = 157.2600 yen)

(Reporting by Yuka Obayashi; Writing by Katya Golubkova; Editing by Stephen Coates)

((jekaterina.golubkova@thomsonreuters.com;))