Sherritt to transfer part ownership of Madagascar mine to settled debt woes

first_imgTORONTO – Sherritt International Corp. (TSX:S) says it has reached a deal with the joint owners of a Madagascar mine that will see it transfer more ownership to cut its outstanding debt.The Toronto-based miner says it will shift a 28 per cent interest in the Ambatovy nickel mine joint venture to partners Sumitomo Corp. and Korea Resources Corp. in a deal that will eliminate $1.3 billion in partner loans from its balance sheet.Sherritt will be left with a 12 per cent stake in the mine, but remain operator until at least 2024.The company has struggled to make payments on its debt to the partners, and has been operating under a temporary deferral agreement while unable to make cash payments.Sherritt says the Ambatovy mine is the world’s largest finished nickel operation of its kind, with expected production this year of 36,000- to 39,000-tonnes of finished nickel and 3,300 to 3,600 tonnes of finished cobalt.The company also says it has had a fatality at its Energas S.A. power generation in Cuba due to an apparent electrocution.last_img

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