Sumitomo Corp has submitted a debt restructuring plan to a UK court for its Ambatovy nickel and cobalt project in Madagascar.
The plan is aimed at addressing equipment malfunctions at the plant and implementing other necessary improvements, according to a statement released by the company on Thursday.
Earlier this year, Sumitomo reported an 89-billion yen ($617 million) impairment on the project, in which it holds a 54% stake.
The project has been financially strained by a surplus of low-cost nickel from Indonesia, which has driven nickel prices down by half since late 2022, forcing many producers to reduce output.
The impact of falling nickel prices has also been felt by other major mining companies. BHP Group announced in July that it would shut down its loss-making Nickel West business in Australia until at least early 2027.
Anglo American is considering selling or closing its nickel unit, while Glencore has already suspended mining operations in New Caledonia.
