FNI completes nickel shipment to Indonesia

MANILA, Philippines — Platinum Group Metals Corp., the operating arm of Global Ferronickel Holdings Inc. (FNI) in Surigao, successfully made its first shipment for the year – bound for Indonesia – as the mining firm seeks to diversify its client base.

In a regulatory filing, FNI said the shipment was aboard M/V YUE DIAN 59 that left PGMC anchorage area last April 30.

The vessel carried 56,625 wet metric tons (WMT) of low-grade nickel ore with 1.25 nickel and iron content below 20 percent.

“This first shipment to Indonesia represents a key strategic move for FNI as we continue to strengthen our international market presence and diversify our client base,” FNI president Dante Bravo said.

“China remains our biggest market but the demand from Indonesia has been growing significantly since the past year,” Bravo added.

PGMC targets to complete 91 shipments this year totaling to five million WMT. The mining firm’s projected sales mix will consist of 47 percent medium-grade nickel ore, while the remaining will be 53 percent low-grade.

“FNI is committed to maintaining its position as one of the country’s leading nickel ore producers and contributing to the growth of the Philippine mining industry,” FNI said.

Last year, China remained as FNI’s top market destination, accounting for 93 percent of the firm’s revenues followed by Indonesia at seven percent.

FNI recorded P7.61 billion in revenues last year, about 13 percent lower than the P8.79 billion posted in 2023 due to weak nickel prices abroad.

The firm’s net income attributable to parent shareholders fell by 52 percent to P743.9 million last year from P1.54 billion in 2023.

The company recorded an average realized nickel ore price of $24.26 per WMT last year, more than a quarter lower than the $33.28 per WMT recorded in 2023.

Indonesia, the world’s largest nickel producer, has been one of the growing markets for Philippine nickel ores as the former faces supply problems.

BMI, a unit of Fitch Solutions, earlier disclosed that Indonesia increased its imports of nickel ore from the Philippines last year due to delays in its mine quota approvals and adverse weather conditions.

Indonesia imported 10.2 million metric tons of nickel ore from the Philippines last year to ease its supply woes, according to BMI. The volume was much bigger than the 347,000 MT that Indonesia imported from the Philippines in 2023, BMI noted.