Listed mining firm Global Ferronickel Holdings Inc. (FNI), through its operating arm Platinum Group Metals Corp. (PGMC), has been awarded by Chinese firm Baosteel Resources International Co. Ltd. a contract to supply one million wet metric tons (WMT) of nickel ore at market price in 2020.
In a disclosure to the Philippine Stock Exchange, the company said 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.
Delivery of the ore is expected to start at the onset of the dry season in April next year.
Since 2014, PGMC has been supplying nickel ore to Baosteel.
Earlier this month, FNI reported its net income jumped 35 percent in the first nine months of the year to P804.95 million, from P595.43 million a year ago, driven by the rise in nickel ore prices in the third quarter which also pushed revenues up by 5.4 percent to P4.79 billion from P4.54 billion.
FNI said the average realized price of nickel ore for the period improved by 9.3 percent to $19.88 per WMT, from the previous $18.18 per WMT.
Dante Bravo, FNI president, recently said the company is “counting on the price of nickel to continue its upward momentum, especially with the Indonesian government’s recent decision to ban the export of nickel ore from next year.”
FNI is the second largest nickel producer in the country.