[SMM News] Sumitomo Metal announces suspension of mining operations at silver, zinc, lead and nickel mines Ambatovy nickel project is affected

SMM3, 26 Jun: 26, Sumitomo Commercial Co., Ltd. announced the suspension of mining operations due to COVID-19 (Silver / Zinc / lead and Nickel Mining Project). Sumitomo hereby announces that in order to prevent the spread of the COVID-19 virus, it will temporarily suspend the silver, zinc and lead mining project Minera San Cristobal in Bolivia and the Ambatovy Nickel Project in Mexico.

In Bolivia and Madagascar full-day curfews or curfews have been imposed and public transport has been suspended. Taking into account the impact of these measures, including ensuring that it is difficult for employees to enter the business and logistical stagnation, we have decided to suspend the business to ensure the safety of our employees and their families. The suspension does not include any facilities that require continuous operation, such as power plants. A comprehensive assessment of the impact of this situation on our financial performance for the fiscal years 2019 and 2020 is under way. In the future, we will publish further information related to these operations as needed.

It is reported that the Ambatovy project is located in Madagascar's large tonnage, long-life nickel and cobalt mining enterprises. With a total cost of US $8 billion, the Ambatovy project is the largest foreign investment in the country's history and one of the largest in sub-Saharan Africa and the Indian Ocean. It is one of the largest laterite nickel mining entities in the world, and Ambatovy aims to become a leader in operational efficiency, health and safety, environmental management and social participation, while contributing to the long-term prosperity of Madagascar.

(Sumitomo MM), a Sumitomo metal mine, has a 47.7% stake in the project, with nickel production of 16000 tons in 2019, according to SMM data.

List of impacts of overseas nickel mining enterprises: