Nickel miner Global Ferronickel Holdings Inc. said Monday it signed an agreement with Chinese firm Baosteel Resources International Co. Ltd for the supply of 1.5 million wet metric tons of nickel ore for 2023.
FNI said in a stock exchange filing nickel ore would be sourced from its operating mines in Surigao del Norte and Palawan, operated by Platinum Group Metals Corp. and Ipilan Nickel Corp., respectively.
“Our two operating mines have given us the ability to undertake year-round production to better support the growing demand from China. The easing of COVID-19 restrictions and the robust growth of China’s property sector that is driving the need for stainless steel will help boost the nickel industry,” said FNI president Dante Bravo.
FNI said one-third of the shipment would be composed of low-grade nickel ore with 0.90 percent nickel content and 49 percent iron content, while the remainder would be medium- to high-grade nickel ore with 1.30 percent to 1.60 percent nickel content and 15 percent to 25 percent iron content.
The selling price of each shipment will be set on a monthly basis, according to the prevailing market price at the time of price setting, FNI said.
FNI’s mining operations in Brooke’s Point, Palawan was disrupted by protests from residents.
The Brooke’s Point Regional Trial Court Branch 165 recently issued a temporary restraining order against protesters blocking the mine haul roads of IPC, which are disrupting the company’s mining operations.
FNI is the second largest nickel producer in the Philippines.
Baosteel is a wholly-owned subsidiary of Chinese steel manufacturing firm China Baowu Steel Group and is engaged in the business of mineral resource investment, trading and logistics services.
It specializes on trading of metallurgic raw material with annual volume of over 60 million tons covering a vast range of products such as iron, ore, coal, alloys, non-ferrous metals, ferrous scraps, metallurgical flux, etc. Baosteel has more than 100 overseas suppliers and over 40 overseas clients.