Listed Global Ferronickel Holdings Inc. (FNI) has signed a supply agreement with a Hong Kong-based company for the export of two million wet metric tons of (WMT) nickel ore.
FNI said its operating subsidiary, Platinum Group Metals Corp. (PGMC), renewed its contract supply with the Baosteel Resources International Co. Ltd.
The purchase agreement covers a variety of products ranging from low grade ore with nickel content of 0.9 percent to high grade ore with nickel content as high as 1.8 percent. It will be priced based on the market prices for the 2018 mining season.
Baosteel Resources has PGMC to supply them low grade limonite ore to high grade saprolite since 2014.
Last year, Baosteel Group was ranked as the third largest company in the materials sector. The company is also 204th overall on the Fortune Global 500 Companies.
FNI is targeting to ship a total of six million WMT of nickel ore, mostly to Chinese firms, this year.
FNI is a primary supplier to major customers in China, including its other territories.
China is the largest consumer of nickel globally, accounting for around 50 percent of world consumption.
Last year, FNI’s net income surged 20 times to P780 million on the back of improved selling prices, operational efficiency and a favourable exchange.
FNI is the second largest nickel producer in the country. Among its subsidaries are Platinum Group Metals Corp., Surigao Integrated Resources Corp., PGMC-CNEP Shipping Services Corp., and PGMC International Limited.
