What is Sumitomo Corp.'s plan regarding its stake in the Ambatovy nickel project in Madagascar, and when does it intend to complete the divestment?

Sumitomo Corp. plans to divest its 54% majority stake in the Ambatovy nickel project in Madagascar during the first half of the current fiscal year, which ends in March 2027. The decision follows a review of market conditions and comes after repeated operational disruptions, including recent damage from Cyclone Gezani and prior issues such as slurry pipeline damage.

What financial impact does Sumitomo expect from the divestment of its Ambatovy stake, and how will it be partially offset?

Sumitomo expects to book a charge of approximately ¥70 billion ($445 million) on the transaction, but this loss will be partly offset by a reduction in income-tax expenses, as stated in its Friday announcement.

Japan’s Sumitomo to Divest Stake in Madagascar Nickel Project

Apr 30, 2026

Sumitomo Corp plans to divest its 54% stake in Madagascar's Ambatovy nickel project by March 2027 following production disruptions and cyclone damage. The transaction will incur a ¥70 billion charge, offset partly by reduced income-tax expenses.

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