FNI unit signs new deal with Baosteel

A SUBSIDIARY of Global Ferronickel Holdings, Inc. (FNI) has renewed its supply contract with Hong Kong-based Baosteel Resources International Co., Ltd.
In a disclosure to the stock exchange, FNI said its subsidiary Platinum Group Metals Corp. (PGMC) inked a deal to supply 2 million wet metric tons (WMT) of nickel ore to Baosteel Resources.
“The purchase agreement covers a full range of products from low grade ore with nickel content of 0.90% to high grade ore with nickel content of as high as 1.8%,” the listed miner said, noting the prices will be based on prevailing market prices for the 2018 mining season.
Starting 2014, PGMC has delivered low grade limonite ore to high grade saprolite to the Baosteel Group subsidiary.
Aside from Baosteel, PGMC has been a supplier of nickel ore to China-based Guangdong Century Tsingshan Nickel Industry Co. Ltd. since 2014. This year, PGMC will be supply 1.5 million WMT of nickel ore to the Chinese mining firm.
FNI earlier announced a 6 million WMT target shipment volume for PGMC this year, depending on weather conditions.
PGMC operates the Cagdianao Mine Project in Surigao del Norte. In June 2016, it renewed its Mineral Product Sharing Agreement for another 25 years. — Anna Gabriela A. Mogato