Nickel miner hikes supply to Chinese firm in new deal

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    Global Ferronickel Holdings (FNI) through Platinum Group Metals Corp. signed an annual purchase agreement with Baosteel Resources International Co. Ltd. for the supply of 1.3 million wet metric tons (WMT) of nickel ore for next year’s mining season.

    The deal is a 30 percent increase from this year’s supply contract covering 1 million WMT.

    Baosteel Resources is a wholly-owned subsidiary of Chinese steel manufacturing firm China Baowu Steel Group specializing in trading of metallurgic raw materials with an annual volume of over 60 million tons.

    FNI said if stockpile inventory permits, half 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 percent to 1.80 percent nickel content and 15 percent to 25 percent iron content.

    Delivery is expected to start in April 2021 and the selling price of each shipment will be set on a monthly basis.

    “We believe this is a result of the quick economic recovery in China. Against other countries, China was able to respond well to this pandemic and manage its economy in an unprecedented manner. The economic growth in China will further accelerate in the coming year as there are recent announcements that the vaccine would soon be available. Given those prospects, we are very bullish in the nickel space,” said FNI president Dante Bravo. – Jed Macapagal