The submitting is a part of their effort to make sure the secure and environment friendly operation of the mission, not a liquidation course of, the spokesperson informed Reuters.
The spokesperson didn’t present particulars of the debt restructuring plan and future plans for the mission, saying “we’re nonetheless contemplating all choices.”
The Japanese buying and selling home has been struggling to stabilize manufacturing and enhance profitability on the Ambatovy mission, which launched in 2005.
In Could, Sumitomo CEO Shingo Ueno mentioned that the corporate will contemplate all potential choices to determine the most effective future coverage of the Ambatovy mission for all stakeholders.
Requested whether or not a withdrawal was among the many choices, Ueno mentioned on the time that Sumitomo’s rapid precedence is to carry again nickel manufacturing to regular ranges by fixing glitches on the plant.
The mission produced about 8,000 metric tons of nickel in the course of the April-June quarter, down from about 10,000 tons a yr earlier, Sumitomo mentioned in July. It expects an annual manufacturing of round 35,000 tons for the yr to March 31.
Sumitomo booked an impairment lack of 89 billion yen ($616 million) on the mission for the monetary yr ended March 31, lowering the mission’s guide worth to zero.
The Ambatovy mission has resulted in an amassed lack of 410 billion yen for Sumitomo, together with a complete impairment lack of 265.5 billion yen to this point, in accordance with the spokesperson.
The Japanese firm remains to be assessing the affect of Ambatovy’s newest debt restructuring plan on its earnings, the spokesperson mentioned.
($1 = 144.4100 yen)
(By Yuka Obayashi; Modifying by Philippa Fletcher and Michael Perry)