Global Ferronickel Holdings, Inc. (FNI) and its subsidiaries have signed an agreement to sell up to 1.5 million wet metric tons of nickel ore to Baosteel Resources International Co., Ltd. this year.
The price will vary monthly based on market rates, and the ore will come from their mines in Surigao del Norte and Palawan, with varying nickel and iron content.
Baosteel Resources International Co., Ltd., a fully owned subsidiary of China Baowu Steel Group, specializes in the fields of mineral resource investment, trading, and logistics services.
FNI President Dante Bravo, through a statement released on Tuesday, stated that their mining operations, Platinum Group Metals Corporation (PGMC) in Surigao del Norte and Ipilan Nickel Corporation (Ipilan) in Brooke’s Point, southern Palawan, have entered into an annual sale and purchase agreement with Baosteel.
Under the agreement, Baosteel will purchase up to 1.5 million wet metric tons (WMT) of nickel ore in 2024. The pricing will be set each month, reflecting the current market rates at the time of each sale.
Approximately two-thirds of the nickel ore to be supplied is anticipated to be of low grade, containing 0.90% nickel and 48% iron, and ranging from 1.30% to 1.40% nickel with iron content between 15% and 25%.
The remaining third of the supply will consist of medium-grade ore, with nickel content of 1.40% and higher, and iron levels ranging from 12% to 23%. This ore will be extracted from FNI’s mines located in Surigao del Norte and Palawan.
“We are proud to work with Baosteel and continue our long-term relationship” Bravo said.
“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,” he added.
Bravo highlighted that their partnership, which has lasted nearly a decade, complements the goal of supplying vital metals and minerals for eco-friendly and sustainable everyday products, a mission central to FNI’s operations.
FNI concluded 2023 with a shipping volume of 4.763 million WMT. This included 3.297 million WMT from PGMC and 1.466 million WMT from Ipilan. Out of this, Baosteel purchased a total of 0.379 million WMT.
China Baowu Steel Group achieved the status of the largest company in the Materials sector and was ranked the 44th largest globally by total revenues, according to the Fortune Global 500 in 2023. This recognition marked the group’s 14th consecutive year on the list.