FNI unit renews nickel exports deal with China firm

MANILA, Philippines — Listed Global Ferronickel Holdings Inc. (FNI) has inked a supply agreement with a Chinese company for the export of 1.5 million wet metric tons (WMT) of nickel ore.

In a regulatory filing, FNI said its operating subsidiary Platinum Group Metals Corp. (PGMC) renewed its supply contract with Guangdong Century Tsingshan Nickel Industry Co. Ltd.

The contract covers medium grade nickel with high iron ore and will be priced based on prevailing market prices for the 2018 mining season.

PGMC has been supplying medium grade saprolite ore to the Chinese company since 2014.

This year, FNI is targeting to ship six million WMT of nickel ore, mostly to Chinese firms.

FNI is a key supplier to major customers in China amid its growing demand for nickel ore, the main raw material for stainless steel and special alloys, among others.

China is the largest consumer of nickel globally, accounting for around 50 percent of world consumption.

FNI operates the Cagdianao nickel project with 4,376 hectares in Surigao del Norte, which is divided into seven contiguous laterite deposits.

FNI’s net income surged 20 times to P780 million last year on the back of improved selling prices, operational efficiency and a favorable exchange.

Nickel ore shipments grew 39 percent to 5.971 million WMT while average realized price increased by five percent to $19.29 per WMT.

FNI is the second largest nickel producer in the country and among its subsidiaries are Platinum Group Metals Corp., Surigao Integrated Resources Corp., PGMC-CNEP Shipping Services Corp., and PGMC International Ltd.