Global Ferronickel Holdings Inc. (FNI) said it sealed a supply agreement for the delivery of 1.5 million wet metric tons of nickel ore to China’s Baosteel Resources International Co. Ltd. this year.
The company said the nickel ore will come from its operating mines in Surigao del Norte and Palawan operated by Platinum Group Metals Corp. and Ipilan Nickel Corp., respectively.
“Our two operating mines have given us the ability to undertake year-round production to better support the growing demand from China. The easing of COVID-19 restrictions and the robust growth of China’s property sector that is driving the need for stainless steel will help boost the nickel industry,” said Dante Bravo, president of FNI, whose Palawan operation is the subject of a protest by locals.
FNI said should stockpile inventory permit, one-third of the shipment will be composed of low-grade nickel ore with 0.90 percent nickel content and 49 percent iron content, while the remainder will be medium- to high-grade nickel ore with 1.30 to 1.60 percent nickel content and 15 to 25 percent iron content.
“The selling price of each shipment will be set on a monthly basis according to the prevailing market price at the time of price setting,” FNIadded.
Baosteel Resources International is a wholly owned subsidiary of leading Chinese steel manufacturing firm China Baowu Steel Group.
