Sumitomo says Ambatovy nickel project unaffected by Madagascar political turmoil
Japanese trading house Sumitomo Corp said on Friday that operations at its Ambatovy nickel project in Madagascar have not been affected by recent political turmoil.
Plans for the project to produce around 35 000 metric tons of nickel for the year ending March 31 are unchanged.
The military staged a coup this month after former President Andry Rajoelina was ousted and fled following weeks of youth-led protests. Colonel Michael Randrianirina was sworn in as interim President days later.
A new cabinet was appointed this week of mostly civilian ministers, including some prominent critics of Rajoelina.
"The Ambatovy has been completely unaffected from the recent political instability," Sumitomo Chief Executive Shingo Ueno told a news conference.
"Operations are running smoothly, and we have no plans to make additional funding in the project," he said.
The project produced around 15 000 tons of nickel in the April-September half, little changed from a year earlier. Maintenance is planned for November.
"While continuing to strengthen our operational foundation, we will keep all options on the table to determine the optimal and best course of action for all stakeholders," the company said in a statement.
Sumitomo has long struggled to stabilise production and improve profitability at Ambatovy.
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