FNI to supply nickel ore to Chinese miner
Credit to Author: Eireene Jairee Gomez| Date: Wed, 20 Nov 2019 12:00:14 +0000
LISTED Global Ferronickel Holdings Inc. (FNI) has secured a one-year contract to supply 1 million wet metric tons (WMT) of nickel ore to China’s Baosteel Resources International Co. Ltd.
In a disclosure on Wednesday, the nickel exporter, which has been supplying nickel ore to several Chinese state-owned companies, said unit Platinum Group Metals Corp. (PGMC) signed the contract.
The pricing of nickel ore to be delivered to China will be based on prevailing market prices in 2020, it added.
“The supply will consist of 50-percent low-grade and 50-percent medium- to high-grade nickel ore to be sourced from PGMC’s Cagdianao nickel expansion project in Surigao del Norte,” FNI said.
Under the agreement, the delivery will begin in April 2020, it added.
Baosteel is a wholly owned subsidiary of Chinese steel manufacturer China Baowu Steel Group. It is into mineral resource investment, trading and logistics. It also specializes in the trading of metallurgic raw materials, of which over 60 million tons are shipped annually.
Baosteel has over 100 suppliers and 40 clients overseas. Headquartered in Hong Kong, the firm has presence in Southeast Asia and the Pacific, as well as parts of Africa.
FNI is the second largest nickel ore producer in the Philippines and the largest single laterite mine exporter in the world. Its line of business includes the exploration, extraction, production and marketing of laterite nickel ore.
The company owns two laterite nickel mines in Surigao and Palawan provinces.