Nov. 13, 2017
Definitive Agreement signed on Sponsor Structural Change in Ambatovy Nickel Project, Madagascar
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura) hereby announces that a definitive agreement on the revision of the partnership structure of Ambatovy Nickel Project (“Ambatovy”) has been signed by the three sponsors, Sherritt International Corporation (Head Office: Ontario, Canada; President and CEO: Mr. David Pathe; hereinafter, “Sherritt”), Korea Resources Corporation (Head Office: Gangwon-do, Korea; President and CEO: Mr. Young-Min Kim) and Sumitomo Corporation. An agreement in principle had been reached earlier, as was announced on May 2nd. Closing remains subject to various conditions, and is expected to be completed within this year.
With the structural change, Sherritt will reduce its interest to 12%, resume funding at the same level retroactively to the end of 2015 and on a go-forward basis, and continue its commitment to remain as Operator. This will increase and strengthen the partnership of the three sponsors in supporting Ambatovy.
Sumitomo Corporation will become a 47.7% shareholder after the transaction. Under the new structure, Sumitomo Corporation will continue to march together with its partners and strengthen its support to Ambatovy in its endeavors to become a world leading nickel laterite project.
■Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “Contributing to the Development of Local Communities and Industries”.