Rédaction Africa Links 24 with lexpress
Published on 2024-03-01 02:40:00
The drop in nickel and cobalt prices plunges Ambatovy into difficulties.
“All gestures count.” These are the words of Abe Koji, the ambassador of Japan, yesterday in Ivandry, during the celebration of the Japanese national holiday. He expressed this to solicit the support of the Malagasy state towards the nickel and cobalt extraction company Ambatovy, which is currently facing both financial and logistical difficulties. Sumitomo Corporation, a Japanese company, is the majority shareholder of Ambatovy, which is why the ambassador is advocating for it.
The main reason for the current difficulties of the company is the 40% drop in nickel and cobalt prices on the international market. Additionally, the surplus stock does not bode well for a change in pricing situation with new projects emerging in other countries. The Japanese ambassador expects support in every possible way, including the reimbursement of value-added tax (VAT) or other actions. The ambassador reminded in his speech that Ambatovy contributes 4 to 6% of the Malagasy GDP. As a reminder, the VAT refund can be done online. With this refund, Ambatovy could stay afloat.
Win-win
Technical difficulties at the installations in Toamasina exacerbate the company’s problems, which contribute 30% to the country’s export revenue. All of this widens the gap and puts the company in survival mode. Abe Koji emphasizes that the Malagasy state is the loser if Ambatovy does not operate at full capacity, and that’s why a response from the state is requested. “Despite the difficulties, I hope this project is supported and accompanied by the Malagasy authorities for a win-win future,” he explained.
Rafaravavitafika Rasata, Minister of Foreign Affairs, acknowledges the importance of Ambatovy in the country’s economy by stating that the company remains “an investment that generates a significant income for the Malagasy economy.” However, she did not provide a response to the request of the Japanese ambassador in her speech.
Read the original article(French) on lexpress.mg
