Sherritt to resume shipments from Ambatovy mine in Madagascar

1 March 2016 (Last Updated March 1st, 2016 18:30)

Canadian-based Sherritt International is all set to resume shipments from its Ambatovy mine in Madagascar after they were ceased earlier in February 2016 due to new regulations.

Ambatovy

Canadian-based Sherritt International is all set to resume shipments from its Ambatovy mine in Madagascar after they were ceased earlier in February 2016 due to new regulations.

The company said that the Malagasy authorities have now confirmed the mine's position and provided instruction allowing port operations to resume.

Under the Advance Cargo Declaration (ACD) regulations introduced by the transport ministry, containers carrying nickel were not allowed to leave the island's Toamasina port, Sherritt's Madagascan arm Ambatovy said.

The ACD would levy a $100 fee on every shipping container and is applied to all importers and exporters.

Sherritt is the operator and 40% owner of the Ambatovy joint venture, regulated under Madagascar's Large Mining Investment Act (LGIM).

The act provides regulatory as well as fiscal stability for the project and prevents the imposition of new laws and regulations over the life of the mine.

Ambatovy did not register or comply with the new ACD regulation, the company said.

"The company said that the Malagasy authorities have now confirmed the mine's position and provided instruction allowing port operations to resume."

Reuters quoted Ambatovy saying that it could not ship spare parts and raw materials due to enforcement of the regulation.

Further, Ambatovy said that ACD implementation represented additional costs over the duration of the project.

In September 2015, Sherritt announced that Ambatovy achieved financial completion and as a result, the project financing that was put in place to finance construction was non-recourse to all of the partners.

Ambatovy is a partnership of Sherritt International (40%), Japan's Sumitomo (32.5%), and Korea Resources (27.5%).


Image: Sherritt is the operator and 40% owner of the Ambatovy joint venture. Photo: courtesy of Ambatovy.