Nickel producer Global Ferronickel Holdings Inc. (GFNI) plans to complete two acquisitions this year in a bid to expand mining assets and diversify revenue sources.
GFNI president and chief executive Dante Bravo said during the recent stockholders’ meeting the company is acquiring the Ipilan nickel mine in Palawan and a 20-percent stake in Guangdong Century Tsingshan Nickel (GCTN) in China.
Ipilin has a mine life of 10 years with an annual production rate of between 1.25 million and 3 million wet metric ton (WMT) of nickel ore. It has 36.9 million WMT of proven and probable ore reserve with a 1.37 percent nickel average grade.
Bravo said with Ipilan mine, GFNI’s mining operations would become all-year long. Ipilan’s dry season is from November to July, while that of Global Ferronickel’s mines in Surigao province is from March to October.
Bravo said GFNI also plans to complete the purchase of a 20-percent stake in a Chinese nickel processor. Bravo said the move would “enhance synergy” between the company as an ore supplier and GCTN as a value-added processor.
GTCN is an nickel alloy enterprise with an annual production of 30,000 tons of pure nickel on a 33-hectare facility in Guangdong, China.
Meanwhile, the GFNI is pursuing its diversification into steel manufacturing. GFNI plans to begin the operation of its planned steel rebar plant in Mariveles, Bataan in 2023. The plant will have an annual production capacity of 1 million metric tons of 10 millimeter (mm) to 20 mm of steel rebars.
The company is finalizing plans to build a dry bulk terminal also in Mariveles, Bataan.
Bravo said the terminal will have an annual capacity of 3 million MT cargoes.
“Although we strongly believe in the growth potential of the nickel mining business. were are also proactive in diversifying investments towards high growth industries and businesses we think can provide optimal operation synergies and improve our cost efficiencies,” said Bravo.
“We see our business diversification initiatives will provide both risk reduction and optimal value to our stakeholders,” he added.
