Sumitomo to book additional 30bn yen impairment on Madagascar nickel project

25th January 2021 By: Reuters

TOKYO - Japan's Sumitomo Corp said on Monday it will book an additional impairment loss of about 30-billion yen on its Ambatovy nickel project in Madagascar for the October to December quarter to reflect the revised output plan.

The Japanese trading house, which owns a 54.17% stake in the project, posted an impairment loss of 55-billion yen for the April to June quarter last year because of the suspension of the mine's operation amid the Covid-19 pandemic and its downward revision of nickel price outlook.

Sumitomo's annual net loss of 150-billion yen for the year to March 31, 2021, will remain unchanged, it said.