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Madagascar's Ambatovy nickel job to finish debt restructuring in December, says Sumitomo

Madagascar's Ambatovy nickel task companies anticipate to finish its financial obligation restructuring in early December, the task's significant investor Sumitomo Corp. stated on Thursday, including that it was still considering. all alternatives for Ambatovy.

Sumitomo owns a 54.2% stake in the job companies -. Ambatovy Minerals, a mining company, and Dynatec Madagascar, a. refining business - while the remaining stake is held by Korea. Mine Rehabilitation and Mineral Resources.

Previously today, a London court authorized the restructuring. plan submitted by the task companies, Sumitomo said in a. statement.

As a shareholder for this project, we will continue to. evaluate all choices in identifying the very best policy moving on. for all related stakeholders, Sumitomo said.

Nickel costs are heading for the second year of. decline due to an oversupplied market, while the Japanese. trading house has actually been struggling to stabilise production and. enhance profitability at the Ambatovy project.

Since late October, the nickel and cobalt task was slowly. resuming production, which had been halted since of damage to. a pipeline providing ore from its mine to a processing plant.

Sumitomo did not supply any further details about the debt. restructuring, however stated that it was reviewing its effect on. Sumitomo' financials.

For the year that ended March 31, Sumitomo documented. Ambatovy's book worth to absolutely no, sustaining a problems loss of. 89 billion yen ($ 584 million).

The Ambatovy project has actually resulted in a collected loss of. 410 billion yen for Sumitomo, including a total problems loss. of 265.5 billion yen, its representative informed Reuters in August.

(source: Reuters)