Global Ferronickel Holdings Inc. said it has received a new order for nickel, set for delivery this year.
The largest nickel exporter in the Philippines said unit Platinum Group Metals Corp. has signed a supply contract for the delivery of a total of 2 million wet metric tons of nickel ore to Guangdong Century Tsingshan Nickel Industry Co. Ltd. at spot price for this year’s mining season.
China has been the company’s biggest market for its nickel and its partner in further developing the country’s nickel prospects.
Global Ferronickel last year signed an agreement with China state-owned Baiyin Nonferrous Group Co. Ltd. to establish a steel mill in the Philippines.
Baiyin, formed in the Gansu Province, is one of the largest producers of non-ferrous metals in China.
Global Ferronickel said the investment will “promote closer industrial and commercial cooperation as both companies recognize the economic benefits of a partnership arising from the availability of low-cost nickel ore in the Philippines.”
Global Ferronickel is a key supplier to major customers in China, and China’s large and growing demand for nickel ore which is a key ingredient in the country’s production of stainless steel, coins, rechargeable batteries and special alloys.
China is the largest consumer of nickel in the world, accounting for around 50 percent of world consumption.
“Global Ferronickel and Baiyin intend to develop a long term strategic partnership and work closely together in evaluating the economic feasibility of various natural resources projects in the Philippines, including but not limited to, providing trade financing to the operations of FNI’s Ipilan mine in Palawan,” the company said.
“Also, Global Ferronickel and Baiyin will cooperate and evaluate investments in value-added downstream projects in the Philippines, including evaluating the feasibility of constructing an integrated 200-series stainless steel plant in the Philippines with an annual capacity of one million tons using lower grade nickel ore sourced in the Philippines (an estimated total investment of around $500 million to $700 million),” it added.
Baiyin has a total asset value of over RMB45 billion ($7 billion), and has produced over 5.5 million tonnes of base metals over the past six decades. The key stakeholders of Baiyin are the State-Owned Assets Supervision and Administration Commission of the Gansu Province and CITIC Guoan Group.
Baiyin Group is focused on building a Tier 1 international resources company and has developed mining investments in South Africa, Peru and the Democratic Republic of Congo.