Nickel output at Sumitomo's Ambatovy project falls nearly 13% in first quarter (updated)

Sumitomo

31/07/2025 07:02

Recasts paragraph 1, adds comments in paragraphs 6-7 and 8

By Yuka Obayashi and Katya Golubkova

TOKYO, July 31 (Reuters) -
Japanese trading house Sumitomo Corp 8053.T reported on Thursday a nearly 13% decline in first-quarter nickel production at the Ambatovy project in Madagascar, and kept its full-year output forecast unchanged.

The company produced 7,000 metric tons of nickel in the first quarter, down from 8,000 tons last year.

Production at the Ambatovy project was suspended in February for checks at a pipeline that broke last September. Operations gradually ramped up from April and fully stabilised in early May, the company said in its quarterly results presentation.

Sumitomo forecasts nickel production at the project in the mid-30,000-ton range this year, and plans a total plant shutdown from October to November for maintenance.

Sumitomo, which owns a 54.2% stake in the project companies, has struggled to stabilise production and boost profitability at Ambatovy.

"We are continuing to examine all options for Ambatovy's future," Yoshiyasu Fuse, head of accounting controlling department, told a news conference on Thursday.

"As a shareholder, we've put all possibilities on the table and are now deepening our specific considerations," Fuse added.

The company wrote down the project's book value to zero in the fiscal year ended March 2024 and has been reviewing all possible options for the project's future since last year.

Fuse emphasised that stabilising operations and enhancing cost competitiveness will be key to strengthening the business foundation, regardless of the option pursued.

 (Reporting by Katya Golubkova and Yuka Obayashi; Editing by Eileen Soreng)

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