Sherritt scales back Ambatovy ownership, to remain operator

Canadian diversified miner Sherritt International has reached agreement with its joint venture (JV) partners to reduce its interest in the Ambatovy nickel/cobalt mine, in Madagascar, from 40% to 12%. Sherritt, which derives about a quarter of its revenue from Ambatovy, has long ceased funding Ambatovy cash calls due to the ‘40 for 12’ issue. “It no longer makes sense to fund 40c of every $1 capital for only an effective 12c return on Ambatovy cash distributions,” Sherritt CEO David Pathe stated in an interview with Mining Weekly Online late last year.