Japanese trading house Sumitomo Corporation is divesting its 54 per cent stake in Madagascar’s Ambatovy nickel project, transferring ownership to Jersey-based Ambatovy Mineral Resources Investment Holding Co (AMRI). The move will incur a significant US$445 million loss for Sumitomo, which has been involved with the project for over two decades and has booked cumulative losses totalling 400 billion yen (US$2.6 billion). A key figure in the consortium leading the acquisition is Jason Kluk, former head of nickel trading at Glencore, who departed the Swiss-based miner in late 2024.
Mr Kluk is named in Jersey and UK registration documents as a director of Essenwood Partners, the firm Sumitomo identified as leading the acquisition alongside South African firm Zungu Investments. Zungu Investments is a private equity firm founded by Zandile Zungu, holding stakes in South African thermal coal assets and owning the AmaZulu Football Club. Mr Kluk, 39, is listed as a person with control of 75 per cent or more at Essenwood Partners, and as a director of AMRI. This acquisition coincides with nickel prices reaching approximate two-year highs, driven by planned supply tightening from top producer Indonesia and sulphur shortages linked to geopolitical events, pushing the market towards its first deficit since 2021.
The consortium, AMRI, is stated by Sumitomo to comprise individuals experienced in managing nickel businesses of similar technology and scale to Ambatovy, possessing strong technical capabilities and industry networks. The Ambatovy project, which produced 28,000 metric tonnes of nickel and roughly 2,500 tonnes of cobalt in 2024, was temporarily shut after cyclone damage in February. It plans to resume production between May and June. State-owned Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) holds the remaining 46 per cent in Ambatovy. Sumitomo intends to retain some off-take rights post-deal, which is expected to finalise by the end of September.
