FNI ore production seen surpassing this year’s target

MANILA, Philippines — Global Ferronickel Holdings Inc. (FNI) expects to exceed its production target this year, as demand and prices continue to rise.

In a regulatory filing, FNI said its target of 5.5 million wet metric tons (WMT) of production and export will likely be exceeded, weather permitting.

This will be composed of 60 percent low-grade ore and 40 percent medium-grade ore.

FNI president Dante Bravo said the company is bullish as demand from China remains strong and nickel prices have been rising over the past years.

“And with current global events adversely affecting oil prices, there is a greater appreciation for electric vehicles, which use nickel for their rechargeable batteries,” Bravo said.

FNI subsidiary Platinum Group Metals Corp. (PGMC) started its first shipment this year with 53,700 WMT of low-grade nickel ore bound for China-based Guangdong Century Tsingshan Nickel Industry Co. Ltd.

“We are upbeat that our mining operations at PGMC have been running seamlessly from the get-go,” Bravo said.

About half of PGMC’s shipment target for this year has already been slated for, while the rest will be open to other customers.

PGMC has a general nickel ore supply contract with GCTNICL and Baosteel Resources International Co. Ltd. for 20 and 30 shipments, respectively.

Prevailing market prices for all customers will be determined at the time of their individual order confirmation.

FNI is the second largest nickel producer in the country. Its subsidiaries include PGMC, FNI Steel Corp., FNI Steel Landholdings Corp., Surigao Integrated Resources Corp., PGMC-CNEP Shipping Services Corp., and PGMC International Ltd.

FNI’s net income jumped to P1.98 billion in 2021 amid better nickel ore prices in the world market.

The company’s nickel project covers over 4,300 hectares in Surigao del Norte, divided into seven contiguous laterite deposits and is connected within eight kilometers from two separate causeway facilities.

FNI is covered by its mineral production sharing agreement for a period of 25 years or until 2042.