Nickel miner Global Ferronickel Holdings Inc. said Wednesday it secured a new one-year supply contract with a Chinese steel miller for the export of 1.3 million wet metric tons of nickel in 2021.
GFNI said in a disclosure to the stock exchange that Surigao del Norte Platinum Group Metals Corp. recently signed an annual purchase agreement with Baosteel Resources International Co. Ltd.
The new supply contract represents a 30-percent increase from this year’s supply contract covering 1 million WMT as China’s economy continued to recover from the impact of the pandemic.
“We believe this is a result of the quick economic recovery in China. Against other countries, China was able to respond well to this pandemic and manage its economy in an unprecedented manner. The economic growth in China will further accelerate in the coming year as there are recent announcements that the vaccine would soon be available. Given those prospects, we are very bullish in the nickel space,” said GFNI president Dante Bravo.
The supply consists of 50-percent low-grade nickel ore with 0.90 percent nickel content and 49-percent iron content and 50-percent medium- to high- grade nickel ore with 1.30-percent to 1.80-percent nickel content and 15-percent to 25-percent iron content.
It said the delivery was expected to commence in April 2021.
Baosteel Resources is a wholly-owned subsidiary of China Baowu Steel Group and is engaged in the business of mineral resource investment, trading and logistics services.
The Philippines is the world’s second-biggest supplier of nickel ore, used to make stainless steel, after Indonesia.