MADAGASCAR – Toronto-based Sherritt International said on Jan. 13, 2016, that it is taking a $1.6 billion after tax impairment charge on its share of the Ambatovy nickel joint venture 80 km east of Antananarivo. Sherritt is the operator and owns a 40% interest in the project.
On a 100% basis, the total amount to be written-down is US$2.4 billion. The other partners are Sumitomo Corp. (32.5%) and Korea Resources Corp. (SNC-Lavalin sold its 5% interest to Sumitomo for about $600 million in September 2015.)
The Ambatovy project began operations in Q3 2012 and reached commercial production on Feb. 1, 2014. Annual design capacity is 60,000 tonnes of nickel and 5,600 tonnes of cobalt.
Production results from Ambatovy are posted at Sherritt.com.