The cyclone that hit Madagascar this week has halted production at cobalt and nickel miner Ambatovy, traders said, adding that a prolonged outage could lift prices of the battery material.
Ambatovy, owned by Japanese trading house Sumitomo Corp and state-owned Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR), produced around 28,000 metric tons of nickel in 2024 and roughly 2,500 tons of cobalt.
Traders said exports were likely to be disrupted as Madagascar’s main port Toamasina was hit badly by the storm.
Ambatovy confirmed that its processing plant in Toamasina on Madagascar’s east coast sustained material damage, and said it was assessing the full extent of the impact on its assets and operations.
“Operations will resume once site integrity, safety conditions and environmental safeguards are fully verified,” the company told Reuters.
Ambatovy produces nickel and cobalt briquettes, which are easily crushed into small particles and dissolved in sulphuric acid to make sulphates, used for electric vehicle batteries.
Prices of cobalt, also used in the aerospace industry, are holding steady around $26 a lb. They have risen 160% since top producer Democratic Republic of Congo imposed an export ban in February last year. It lifted the ban in October and introduced annual export quotas.
Analysts expect global cobalt mine supplies of around 285,000 tons this year, with around 70% coming from Congo.
(By Pratima Desai and Polina Devitt; Editing by Mark Potter and David Holmes)
