Nickel mining company Global Ferronickel Holdings Inc. said unit Platinum Group Metals Corp. signed a purchase contract involving 1 million wet metric tons of nickel ore with China’s Baosteel.
GFHI said in a disclosure to the stock exchange the contract covered low-grade nickel with high iron and medium-grade nickel with low iron at prevailing market prices.
This volume is about 20 percent of PGMC’s annual nickel ore shipment. PGMC has been supplying Baosteel with nickel ore since 2014.
Subject to weather conditions, GFHI plans to ship 5.7 million WMT of nickel ore this year.
Baosteel is a wholly-owned subsidiary of top Chinese steel manufacturer China Baowu Steel Group and is engaged in the business of mineral resource investment, trading and logistics services.
PGMC operates the Cagdianao Nickel Expansion Project comprising 4,376 hectares in Sitio Kinalablaban, Cagdianao Claver, Surigao del Norte.