Global Ferronickel Holdings Inc., a listed nickel producer trading under the name FNI, said Tuesday its subsidiaries, Platinum Group Metals Corp. and Ipilan Nickel Corp., have signed an annual sale and purchase agreement with Baosteel Resources International Co., Ltd. for up to 1.5 million metric tons of nickel ore.
FNI said the price of the nickel shipment will be determined every monty based on the prevailing market value.
It said about two-thirds of the nickel ore to be sold to Baosteel is expected to be low grade with 0.90 percent nickel and 48 percent iron, and between 1.30 percent and 1.40 percent nickel with 15 percent to 25 percent iron. The remaining one-third will be medium grade with 1.40 percent and above nickel and 12 percent to 23 percent iron.
The volume to be sold to Baosteel will be sourced from FNI’s operating mines in Surigao del Norte and Palawan.
“We are proud to work with Baosteel and continue our long-term relationship,” said FNI President Dante Bravo.
“This agreement and our long history together demonstrate our customer’s confidence in our business and provide further recognition of our efforts in maintaining a reliable supply chain to meet the demands for Baosteel products throughout the Asia-Pacific region and internationally. With almost 10 years relationship, we believe our collaboration aligns with FNI’s mission of providing metals and minerals that are essential for greener, more sustainable products required in everyday life.”
FNI ended 2023 with 4.763 million wet metric tons shipped volume, with 3.297 million WMT from PGMC and 1.466 million WMT from Ipilan. A total of 0.379 million WMT were sold to Baosteel.
Baosteel is a wholly owned subsidiary of China Baowu Steel Group and is engaged in mineral resource investment, trading, and logistics services.
