Manila, Philippines/November 11, 2020. Global Ferronickel Holdings, Inc. (FNI), through its operating arm in Surigao del Norte Platinum Group Metals Corporation (PGMC), recently signed an Annual Purchase Agreement with Baosteel Resources International Co. Ltd for the supply of 1.3 million WMT of nickel ore during the 2021 mining season. This represents a 30% increase from this year’s supply contract covering 1 million WMT.
“We believe this is a result of the quick economic recovery in China. Against other countries, China was able to respond well to this pandemic and manage its economy in an unprecedented manner. The economic growth in China will further accelerate in the coming year as there are recent announcements that the vaccine would soon be available. Given those prospects, we are very bullish in the nickel space,” said FNI President Dante R. Bravo.
Should stockpile inventory permit, half of the shipment will be composed of low-grade nickel ore with 0.90% nickel content and 49% iron content while the remainder will be medium- to high- grade nickel ore with 1.30%-1.80% nickel content and 15%-25% iron content. Delivery is expected to commence in April 2021 when the dry season starts and the selling price of each shipment will be set on a monthly basis according to the prevailing market price at the time of price setting.
Baosteel Resources International Co., Ltd. is a wholly owned subsidiary of the top Chinese steel manufacturing corporation China Baowu Steel Group and is engaged in the business of mineral resource investment, trading, and logistics services. Notably, the company highly specializes on trading of metallurgic raw material with annual volume of over 60 million tons covering a vast range of products such as iron, ore, coal, alloys, non-ferrous metals, ferrous scraps, metallurgical flux, etc. Baosteel Resources maintains over 100 overseas suppliers and over 40 overseas clients. The Company’s headquarters is located in Hong Kong with footprints in Australia, Singapore, South Africa, Indonesia,
and several others.