Global Ferronickel Holdings Inc. (FNI) has announced that its subsidiaries, Platinum Group Metals Corporation (PGMC) and Ipilan Nickel Corporation (Ipilan), have signed an annual sale and purchase agreement with Baosteel Resources International Co. Ltd. of China.
Baosteel has committed to purchasing up to 1.5 million wet metric tons (WMT) of nickel ore under the agreement. This will be sourced from FNI’s operational mines in Surigao del Norte and Palawan until 2024. The purchase price will be based on the prevailing market rates at the time of sale.
According to the disclosure made to the Philippine Stock Exchange (PSE), approximately two-thirds of the nickel ore that Baosteel will procure is expected to be low-grade material with 0.9 percent nickel and 48 percent iron. The remaining one-third will consist of medium-grade ore with nickel content above 1.4 percent and iron levels ranging from 12 percent to 23 percent.
FNI President Dante R. Bravo expressed his satisfaction with the 10-year ongoing partnership with Baosteel, citing the confidence and long-term relationship between the two entities.
Bravo also stressed the alignment of their partnership with FNI’s mission of providing essential metals and minerals for the production of sustainable products in everyday use.
FNI concluded the year 2023 with a total shipped volume of 4.763 million WMT, with 0.379 million WMT sold to Baosteel.
Baosteel Resources International Co. Ltd., a wholly-owned subsidiary of China Baowu Steel Group, is primarily engaged in mineral resource investment, trade, and logistics services.
FNI, a holding company with PGMC as its principal subsidiary, stands as the Philippines’ second-largest nickel ore producer, operating mining assets in Cagdianao, Surigao del Norte, and Brooke’s Point, Palawan.
Leveraging its presence in the Philippines and China, FNI aims to diversify its investment portfolio into value-added nickel processing, cement manufacturing, and port operations and logistics.
