FNI inks deal with Baosteel

MANILA, Philippines — Two subsidiaries of listed Global Ferronickel Holdings Inc. (FNI) have signed an agreement with Chinese firm Baosteel Resources International Co., Ltd. (Baosteel) for the supply of up to 1.5 million wet metric tons (WMT) of nickel ore.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, FNI said the agreement was signed by its mining units Platinum Group Metals Corp. and Ipilan Nickel Corp.

Under the agreement, Baosteel will purchase up to 1.5 million WMT of nickel ore for 2024 at a price that is determined monthly based on the prevailing market price at the time of sale.

“About two-thirds of the nickel ore to be sold is expected to be low grade with 0.90 percent nickel and 48 percent iron, and between 1.30 percent and 1.40 percent nickel with 15 percent to 25 percent iron,” FNI said.

It said the remaining one-third would be medium grade with 1.40 percent and above nickel and 12 percent to 23 percent iron.

FNI said the nickel ores would be sourced from its operating mines in Surigao del Norte and Palawan.

Last year, FNI’s shipped volume reached 4.763 million WM, with 3.297 million WMT from PGMC and 1.466 million WMT from Ipilan.