MANILA, Philippines – Global Ferronickel Holdings, Inc. (FNI), a PSE-listed company, has signed a supply contract with a Chinese firm to export 1.5 million wet metric tons (WMT) of nickel ore.
FNI said in its regulatory filing that Platinum Group Metals Corporation (PGMC), the company’s operating subsidiary, signed a renewal supply contract with Guangdong Century Tsingshan Nickel Industry Co., Ltd.
The contract comprises a mid-grade nickel with quality iron ore which will be levied according to existing market prices for the mining season this 2018.
PGMC has been providing medium-quality saprolite ore to Guangdong Century Tsingshan Nickel Industry Co., Ltd. since the year 2014.
This 2018, FNI is aiming to transport 6 million WMT of nickel ore, generally to Chinese companies.
FNI is the main supplier to most buyers in China in the midst of its increasing demand for nickel ore. Nickel ore is the primary raw material used for special alloys, stainless steel, and others.
The largest buyer of nickel worldwide is China, accounting for about 50 percent of global consumption.
FNI operates the nickel project in Cagdianao, Surigao del Norte, having 4,376 hectares of land, which is segregated into seven adjacent laterite deposits.
Net income of FNI grew 20 times to 780 million pesos last year, resulting from the improved selling costs, operational efficiency, as well as positive exchange.
Shipments of nickel ore increased to 5.971 million WMT by 39 percent. On the other hand, average realized price grew by 5 percent to 19.29 dollar per WMT.
FNI is the second largest producer of nickel in the Philippines. Platinum Group Metals Corporation, Surigao Integrated Resources Corporation, PGMC-CNEP Shipping Services Corporation, and PGMC International, Ltd. are among FNI’s subsidiaries.
The company was formerly known as Southeast Asia Cement Holdings, Inc. (CMT). It was founded as a holding company on May 3, 1994. The Securities and Exchange Commission (SEC) authorized its name change to Global Ferronickel Holdings, Inc. on December 22, 2014.
On June 7, 2013, the shareholders of the company, Calumboyan Holdings Inc. (CHI), Lafarge Holdings (Philippines) Inc. (LHPI), and Seacem Silos Inc. (SSI), inked a purchase and sale contract with IHoldings Inc., Januarius Resources Realty Corporation, and Kwantlen Development Corporation (collectively IHoldings Group) for the selling of shares of CHI, LHPI, and SSI, resepectively, which represents 89.87% of FNI to the IHoldings Group.
The IHoldings Group in July 2014 sold its whole FNI stake to several stockholders and companies, which aim to introduce their nickel mining business into the company.
Latest posts by Equilyst Analytics, Inc. (see all)
- Stock Market 101: Different Market Participants - April 10, 2018
- How Does Peso-Cost Averaging Work? - April 7, 2018
- How the Philippine Stock Exchange Sets Up a Safe Marketplace - April 4, 2018