London, February 16th (Argus) - Due to the severe impact of Hurricane "Jazani", the important nickel and cobalt production base in Madagascar, Ambatovy (Anbaoto), was forced to completely shut down. The hurricane caused significant damage to the processing plant located in Tahoasina, and the company is conducting detailed technical inspections to assess the extent of the facility's damage. The company stated that production will only resume after confirming that the plant structure is intact, safety conditions are met, and environmental risks are controllable.
Tahoasina is the main port of Madagascar and also an export center for nickel and cobalt products. This hurricane caused extensive damage to the port and may disrupt logistics transportation, causing delays in the export of intermediate products such as nickel beans. Traders pointed out that if the shutdown lasts for a long time, it will further tighten the supply of raw materials used for producing battery-grade nickel and cobalt sulfates.
Ambatovy is jointly held by Japanese Sumitomo and South Korean KOMIR and is an important refining intermediate supplier, excluding Indonesia and the Democratic Republic of the Congo. The mine is expected to produce approximately 28,000 tons of nickel and 2,500 tons of cobalt in 2024, and its nickel output in the third quarter of 2025 will reach approximately 9,000 tons, an increase of about 25% compared to the previous quarter. Its products are mainly used in applications such as electric vehicle battery materials and play an important role in the global battery supply chain.
Market experts believe that this event may support the cobalt price, while having limited impact on the nickel market, as Indonesia dominates the nickel supply side. Ambatovy stated that the company is currently focusing on ensuring the safety of employees and the community and formulating a recovery plan, but has not disclosed the specific duration of the shutdown or the impact on exports.
