Madagascar-based nickel and cobalt producer Ambatovy will shut down for planned maintenance in November.
Its plant, which is 11km south of the port of Toamasina in eastern Madagascar, will shut for two weeks in November for the first part of the planned maintenance. This will be followed by a partial shutdown for the second stage of the shutdown, which will also last for two weeks.
Ambatovy produced 35,473t of nickel briquette and 3,053t of cobalt in 2017. When fully operational, the plant is expected to produce 60,000t of nickel and 5,600t of cobalt, but it is unclear when it will reach full capacity.
This shutdown will occur ahead of the Indonesian nickel ore export ban from January 2020, which could further tighten nickel supply globally.
Ambatovy is a joint venture involving three companies — Canada's Sherritt International, Japan's Sumitomo Corp and South Korea's Korea Resources Corporation.
As a result of Sherritt's operation in Cuba and the US's commercial, economic and financial embargo against the country, many firms are unable to purchase nickel from the firm.
The Madagascar operation has two sulphur burners linked to its nickel production, which have the capacity to consume around 500,000 t/yr of sulphur. Ambatovy was looking to secure three cargoes of sulphur to cover its fourth-quarter demand of around 150,000t, but may now defer one cargo to early 2020 because of the maintenance works.
The company around two weeks ago purchased one 45,000-50,000t cargo loading at Jubail in Saudi Arabia at the end of September, and will secure a second cargo under contract.
Source: Argus |
