GLOBAL Ferronickel Holdings, Inc. said on Wednesday that its wholly-owned subsidiary, Platinum Group Metals Corp. is targeting to produce 5.5 million wet metric tons (WMT) of nickel ore this year.

“We are upbeat that our mining operations at Platinum Group Metals have been running seamlessly from the get-go. Weather permitting, we might be able to exceed this year’s target of 5.5M WMT consisting of 60% low-grade ore and 40% medium-grade ore,” Global Ferronickel President Dante R. Bravo said in a statement.

The mining company said it began its shipment to customers in China, with 53,700 WMT of low-grade nickel ore bound for Guangdong Century Tsingshan Nickel Industry Co., Ltd. (GCTNICL).

Platinum Group Metals 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, the mining firm said.

“We remain bullish as demand from China continues to be strong, and nickel prices have been rising in recent 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,” Mr. Bravo added.

In 2021, Global Ferronickel reported that its income went up 5.9% to P1.98 billion from P1.87 billion a year earlier on the back of higher nickel prices.

At the stock exchange on Wednesday, Global Ferronickel shares went down by two centavos or 0.7% to close at P2.82 each. — Luisa Maria Jacinta C. Jocson