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Crisis in the Mining Industry : Ambatovy Considers All Options

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Crisis in the Mining Industry : Ambatovy Considers All Options

Ambatovy’s debt restructuring plan

The state of the Ambatovy mining company is not progressing much. Sumitomo Corporation, its main shareholder, states it is considering all possibilities to overcome this unfavorable situation.

Still struggling due to the significant drop in nickel and cobalt prices on the global market, Ambatovy is seeking solutions to its financial difficulties. In a statement, the Japanese company Sumitomo Corporation, as the majority shareholder, reiterated its commitment to considering all possible options. This declaration follows the approval of Ambatovy’s debt restructuring plan by a British court, which began on September 2. This action aims to reduce the debt burden, avoiding the possibility of liquidation, which reassures everyone.

To understand the extent of these problems, Sumitomo recorded a financial impairment of 584 million USD for its Ambatovy activities in its fiscal year ending March 31. The production forecasts for 2024 were also reduced in February of this year. According to company leaders, nickel production could reach around 30,000 tonnes this year.

In any future scenario, Ambatovy relies on Mark Zaborowski’s experience to resolve the situation, hoping that the Malagasy state will pay a significant amount of deductible VAT.

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