TORONTO (miningweekly.com) – Operations at Madagascar’s $8-billion Ambatovy nickel/cobalt mine continued on Friday, despite all shipments to and from the operation remaining marooned at an east-coast port as a tax dispute with the Malagasy government on new shipment levies dragged on.

Operator and 40%-owner Sherritt International on Friday said that operations were ongoing, as it had been able to manage input inventories and had stored finished product for loading on ships for when port operations resumed.

“In addition, we have taken the opportunity to perform scheduled maintenance,” spokesperson Scott Tabachnick stated.

Since February 9, Ambatovy cargo was subject to a new $100 Advanced Cargo Declaration (ACD) levy placed on every container shipped through the country’s ports. However, Sherritt believed that, under an agreement signed with government in December, the operation was exempt from the levy.

“We have had ongoing and productive conversations with government representatives and expect they will uphold the terms of the LGIM [Large Mining Investment] Act and that the matter will be resolved shortly.

“We respect and uphold the laws and regulations of the Malagasy government. We remain confident that government officials will provide the necessary paperwork exempting Ambatovy from the ACD as a result of the pre-existing terms of the LGIM, and that the situation will be resolved shortly and definitively for the future,” said Tabachnick in response to emailed questions.

Ambatovy last Tuesday issued a statement warning that if the tax dispute was not resolved fast, the Ambatovy mine would have to close in a week. Ambatovy said at the time it was in danger of losing customers as a result of the shipping delays.

“We are keeping our customers up to date on the situation, and are working together to ensure we best serve their needs. We are confident that Ambatovy is proving itself to be a low-cost, long-life producer of nickel from lateritic sources and our customers know that Ambatovy will be able to meet their needs for decades,” Tabachnick advised.

Ambatovy’s other partners comprised Sumitomo Holding with 32.5% and Korea Resources with 27.5%.