FNI acquires additional 900 hectares in Surigao

MANILA, Philippines - Listed Global Ferronickel Holdings Inc. (FNI) has acquired an additional 900 hectares of land in Surigao for mineral explorations.

In a disclosure to the Philippine Stock Exchange, FNI said its subsidiary, Surigao Integrated Resources Corp. (SIRC), acquired an exploration permit located at Parcel 1 of the Surigao Mineral Reservation covering an area of 927.92 hectares.

“The recent acquisition of a property contiguous to our Surigao mine, and whose location is within the nickel ore rich Surigao Mineral Reservation, offers us the opportunity to further expand our resource base,” FNI president Dante Bravo said.

Bravo said the acquisition is consistent with FNI’s plans for growth and comes off the heels of its purchase of the Ipilan Nickel mine in Palawan.

The acquisition increases FNI’s total exploration play area by 16.3 percent from the current 5,701 hectares to 6,629 hectares.

“We anticipate the exploration site to yield positive results, further deepening our already strong operating capacity,” FNI said.

In 2015, FNI saw its net income plunged 77 percent to P1.1 billion as a result of lower nickel ore prices in the market.

The company’s total exports also dropped 15 percent to 5.4 million wet metric tons (WMT) from the 6.3 million WMT volume in 2014.

Meanwhile, the company is optimistic on the back of the Ipilan mine in Palawan and the exploration efforts in Surigao.

FNI is also banking on the secured supply contracts with three of China’s biggest stainless steel producers, exporting 4.5 million WMT of nickel ore for a period of one year at spot prices.