Nickel miner Global Ferronickel Corp. (GFNI) is shelving its planned $50-million rebar steel manufacturing project in Bataan province amid weak industry outlook.
GFNI said in a disclosure to the stock exchange Friday it would no longer pursue its planned rebar steel project after conducting an overall market review.
“At its meeting on Dec. 27, 2024, upon assessment of its strategic priorities, the board of directors of FNI was informed by the management of FNI Steel Corp. that it will no longer pursue its planned FNI Rebar Steel Project, prospectively explored since 2019,” GFNI said.
“This decision follows a comprehensive review of market conditions, capital requirements, and the outlook on the rebar steel industry,” it said.
The company said it would instead focus on exploring opportunities from its current businesses that offer greater long-term value.
It noted that its existing businesses which include nickel ore mining and export, port operations and logistics and ferronickel smelting are expected to continue to register strong demand driven by the global transition to clean energy and electric vehicles.
Following the decision, GFNI’s steel subsidiary will also initiate the de-registration process with the Authority of the Freeport Area of Bataan (AFAB).
“While the steel project will not proceed, it has generated value for the company through the acquisition of land in Bataan that has appreciated in value. These assets will be strategically evaluated for profitable use. The company is committed to maximizing value for its stakeholders through continued growth in its current business operations,” it said.
GFNI said it explored possible investment in the steel rebar industry in 2019 and teamed up with Hong Kong-based Huarong Asia Ltd for the project.
It said that in 2021, the nickel mining firm reported it would pursue the project on its own after Huarong Asia backed out from project due to the pandemic.
The plan was to build a rebar steel rolling plant in the Philippines, which is estimated to have an annual output of 600,000 tons. Jenniffer B. Austria
