South African Businessman Sandile Zungu Leads Takeover of Madagascar’s Ambatovy Nickel-Cobalt Mine Amid Global Nickel Price Surge. CITY, Madagascar – Sandile Zungu, a prominent South African businessman, is at the helm of a consortium that has acquired a significant stake in Madagascar’s Ambatovy nickel-cobalt mine.
The deal, led by Zungu Investments and Essenwood Partners, involves the purchase of Sumitomo Corporation’s 54. 17% stake in the mine, reflecting a strategic move to secure a pivotal position in the global supply chain of critical metals. Sumitomo’s decision to divest came after nearly two decades of cumulative losses of approximately $3 billion, much of which was attributed to the devastating impact of a cyclone in 2025.
Despite these setbacks, the Ambatovy mine remains a crucial provider of nickel and cobalt, essential for the production of stainless steel and batteries.
The transaction is particularly timely as the global market for nickel is experiencing a surge, driven by supply disruptions and the rising demand for electric vehicles. With Sumitomo Corp. Retaining certain offtake rights, the mine’s production will continue to benefit the company while allowing the new consortium to focus on enhancing the asset’s production capacity.
Zungu, the founder of Zungu Investments Company (ZICO), has a track record of successful investments across various sectors, including mining, energy, infrastructure, manufacturing, and property. His involvement in this transaction underscores his commitment to the long-term success of the mine and the broader development of Africa’s mining sector.
As the African Continental Free Trade Area (AfCFTA) takes shape, investments like this are expected to foster cross-border economic cooperation and resource management, enhancing regional economic integration.
The consortium’s plans for potential expansions and technological upgrades are anticipated to be announced in the coming weeks.
The Ambatovy deal stands as a testament to Madagascar’s and Africa’s growing importance in the global economy, setting a precedent for future investments in the continent’s mining industry and solidifying its role as a key player in the global supply of critical minerals.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: BI Africa Contributor
