Ambatovy plans Ni shutdown in November: Update

Updates maintenance period in second paragraph

Madagascar-based nickel and cobalt producer Ambatovy will shut down for maintenance in November.

The firm's plant, 11km south of the port of Toamasina in eastern Madagascar, will close for two weeks.

Ambatovy produced 35,473t of nickel briquette and 3,053t of cobalt in 2017. When fully operational, the plant is expected to produce 60,000 t/yr of nickel and 5,600 t/yr of cobalt, but it is unclear when it will reach capacity.

The November shutdown will occur ahead of the Indonesian nickel ore export ban from January 2020, which could further tighten nickel supply globally.

Ambatovy is a joint venture between three companies — Canada's Sherritt International, Japan's Sumitomo and South Korea's Korea Resources Corporation.

As a result of Sherritt's operation in Cuba and the US's commercial, economic and financial embargo against the country, many firms are unable to purchase nickel from the firm.

Impact on raw materials

The Madagascar operation has two sulphur burners linked to its nickel production. These can consume around 500,000 t/yr of sulphur. Ambatovy was looking to secure three cargoes of sulphur to cover its fourth-quarter demand of around 150,000t, but may now defer one cargo to early 2020 because of the maintenance.

The company purchased one 45,000-50,000t cargo around two weeks ago that is due to load at Jubail in Saudi Arabia at the end of September. It will secure a second under contract.