FNI, Hong Kong firm ink export deal

MANILA, Philippines — Listed Global Ferronickel Holdings Inc. (FNI) has expanded its supply agreement with a Hong Kong-based company for the export of 1.3 million wet metric tons (WMT) of nickel ore.

In a regulatory filing, FNI said its operating arm Platinum Group Metals Corp. (PGMC) has been awarded by Baosteel Resources International Co. Ltd. a contract to supply 1.3 million WMT of nickel ore in 2021.

This represents a 30 percent increase from this year’s supply contract covering one million WMT.

FNI president Dante Bravo said the expansion is a result of the quick economic recovery in China.

“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,” he said.

The supply will consist of 50 percent low-grade and 50 percent medium- to high-grade nickel ore to be sourced from PGMC’s Cagdianao nickel expansion project in Surigao del Norte.

Delivery is expected at the onset of the dry season in April 2021.

PGMC has been supplying Baosteel Resources with low grade limonite ore to high grade saprolite since 2014.

A wholly-owned subsidiary of China Baowu Steel Group, the company is engaged in mineral resource investment, trading, and logistics.

It specializes in the trading of metallurgic raw materials, of which over 60 million tons are being shipped annually. Its product ranges are iron, ore, coal, alloys, non-ferrous metals, ferrous scraps and metallurgical flux.

Baosteel Resources currently has over 100 suppliers and 40 clients overseas. With headquarters located in Hong Kong, it has strategic footprints in Southeast Asia and the Pacific as well as in some parts of Africa.