FNI to buy into Chinese nickel processor

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Global Ferronickel Holdings Inc.’s (FNI) board has approved the acquisition of 20 percent interest in Guangdong Century Tsingshan Nickel Industry Co. (CGTN).

In a disclosure to the Philippine Stock Exchange, the company said the acquisition will enhance synergy between FNI as ore supplier and GCTN as value-added processor as well as to provide consistent and reliable trade transactions while also supporting diversification projects.

The Chinese firm has been one of the company’s top buyers of nickel ore.

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FNI said that its Audit, Risk and Related Party Transaction Committee is reviewing the terms and conditions of the acquisition .

Subsidiary Platinum Group Metals Corp. (PGMC) started shipping nickel ore to its customers in China last March.

FNI targets to ship 6 million wet metric tons (WMT) this year of which 70 percent are low-grade nickel ore and 30 percent medium-grade nickel ore.FNI is the country’s second-largest nickel ore producer.

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