FNI unit inks supply deal with Chinese company

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GLOBAL Ferronickel Holdings, Inc. (FNI) said its subsidiary signed a contract to supply nickel ore to a Chinese firm this year.

In a disclosure to the stock market on Thursday, FNI said Platinum Group Metals Corp. (PGMC) agreed to deliver 1.1 million wet metric tons (WMT) of nickel ore to Baiyin International Investment, Ltd. until end-2018.

“The purchase agreement covers a full range of products from low grade ore (with nickel content of 0.90% and iron content of 49%) to high grade ore (with nickel content of as high as 1.8% and iron content of less than 20%),” the company said.

FNI said the price of nickel ore will be set monthly, based on the prevailing market prices.

Earlier this year, PGMC renewed its agreement to supply 2 million WMT of nickel ore to Hong Kong-based Baosteel Resources International Co. Ltd.

The firm also agreed to supply 1.5 million WMT to Guangdong Century Tsingshan Nickel Industry Co. Ltd.

FNI is targeting to ship 6 million WMT for 2018, but this would still be subject to weather conditions.

The listed miner operates the 4,376-hectare Cagdianao mine project in Surigao del Norte. The company has renewed its Mineral Product Sharing Agreement last June 2016 to extend its operations for another 25 years.

FNI’s shares on Thursday closed 0.41% higher to P2.42 apiece. — Anna Gabriela A. Mogato