MADAGASCAR – Toronto-based Sherritt International and its partners Sumitomo Corp. and Korea Resources Corp. have restructured the Ambatovy nickel joint venture. Sherritt has shed a 28% interest in the project, retaining only a 12% ownership interest.
The Ambatovy joint venture is produce between 36,000 and 39,000 tonnes of finished nickel in 2017. (Image: Sherritt International)
By reducing its share of the joint venture, Sherritt will eliminate about $1.3 billion in debt. The company will resume funding for its 12% interest retroactively to the end of 2015 and expects to pay approximately US$35 million to fulfill a funding shortfall, including interest, to date. Sherritt will make an additional payment of about US$13 million that will be placed into escrow to cover potential future funding requirements at Ambatovy. Sherritt will remain the operator until at least 2024.
Ambatovy is the world’s largest finished nickel laterite project and has more than 25 years of mine life remaining.
The Ambatovy website is at www.Ambatovy.com.