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Reuters reported that Sherritt International Corp. (TSX:S) has said that due to new regulations, containers carrying nickel have been prevented from leaving Madagascar’s Toamasina port.
Reuters reported that Sherritt International Corp. (TSX:S) has said that due to new regulations, containers carrying nickel have been prevented from leaving Madagascar’s Toamasina port. If the situation doesn’t change, the company’s Ambatovy mine will only be able to stay open for a week.
As quoted in the market news:
The $7-billion Ambatovy mining project, 40% owned and operated by Sherritt, has been hit by record low nickel prices and management has been forced to lay off more than 1 000 of its workforce over the past year.
Ambatovy said in a statement it was seeking a meeting with Madagascan President Hery Rajaonarimampianina to discuss new Advance Cargo Declaration (ACD) regulations, which levy a $100 fee on every shipping container, as it believes it should not be applied to Ambatovy.
Ambatovy said that due to enforcement of the ACD regulation introduced by the transport ministry, it was also unable to ship spare parts and raw materials, limiting its cash flow.
“The blocking of containers at the Port means that Ambatovy has no income and cash flows, already very low and affected by the nickel price, the lowest in history, is increasingly critical,” Ambatovy said in a statement.
