Sumitomo’s Madagascar nickel mine transforms into $3bn money pit

Sumitomo's Madagascar nickel mine transforms into $3bn money pit Sumitomo's Madagascar nickel mine transforms into $3bn money pit

TOKYO — A Madagascar nickel mining operation has generated over 430 billion yen ($3 billion) in net losses for Sumitomo Corp. since the Japanese trading house joined the project two decades ago.

Sumitomo acquired a stake in the Ambatovy mine in 2005 that has grown to just over 54% with Korea Mine Rehabilitation and Mineral Resources (KOMIR) owning the rest.