Nickel miner and refiner Sherritt International Corporation has cautioned the market of an expected $2.4 billion impairment of the Ambatovy joint venture (JV) assets, in Madagascar, citing lower forecast nickel prices.

The expected impairment figure was based on an expected nickel price of $8.50/lb. Sherritt expected to record an impairment expense of some C$1.6 billion for the ended December 31, 2015. The total impairment comprised C$1.3 billion – being Sherritt’s 40% share of Ambatovy’s impairment – and C$300 million from the incremental carrying value of Sherritt’s investment in an associate, primarily related to mineral rights acquired from Dynatec in 2007.

The company said the impairment loss was a noncash item with no adverse impact on cash flow. The Ambatovy mine is a JV between Sherritt, Sumitomo and Korea Resources.

• [Editor:Juan]