Global Ferronickel Holdings Inc., a listed nickel miner that trades using the symbol FNI, is in talks with a potential technology partner for its plan to build a $100-million steel plant in Bataan with an eye to capture around 10 percent of the market for imported steel.
In an exclusive interview with Context.ph, FNI president Dante Bravo said the company looks to build a steel plant that will produce one million tons of rebars a year to take advantage of the strong growth in economy and the major infrastructure projects of the government.
“We are more or less importing 10 million tons of steel a year,” said Bravo. “And demand is growing steadily,” he added.
Bravo said the acquisition of an additional 22 percent stake in Mariveles Harbor Corp. for P192 million is part of the bigger plant to put up a steel plant. The acquisition, which was disclosed Wednesday to the stock exchange, will raise FNI’s stake in Mariveles Harbor to 88 percent.
He said FNI will expand the Mariveles Harbor to accommodate an additional Panamax-sized vessel and other ships that cater to the domestic market. He said construction of the additional berth and minor reclamation will proceed even before they close on a deal for the steel plant.
Bravo said the goal is seal a strategic partnership quickly so that the steel plant, which takes between 18 to 24 months to build, could operate by late 2024. “We already bought a site for the steel plant, which is around 5 kilometers from the harbor,” he added.
He said FNI is talking with “an Asian partner” that will provide the technical and management expertise to operate the steel plant.
Bravo said FNI is willing to cede control of the technical partner if it would get the steel plant operational as early as possible. “This is a new venture for us. We don’t really know the market and the technology. But that it is something worth pursuing because there is a really big opportunity there,” he said.