Global Ferronickel Holdings, Inc. (FNI) is a publicly-listed company in the Philippines engaged in mining and exporting of nickel ores as its core business. FNI also has significant interests in steel manufacturing, port operations and logistics, ferronickel smelting plant and cement business. The company’s extensive portfolio of nickel exploration tenements in key mineral regions is supported by its long-standing experience, solid technical expertise, and dedication to environmental, social, and governance (ESG) initiatives, providing long-term value through strategic expansion plans.
GFNI Head Office Facilities
As a leading nickel ore supplier in the ASEAN region, FNI is seeking opportunities to participate in the nickel ore processing business in the Philippines in the near term, catering to the increasing demand for nickel-based batteries for electric vehicles (EVs) and contributing to a more efficient and eco-friendly alternative to fossil fuel-powered vehicles. The company is committed to growth and is confident in its core mining business, as evidenced by its consolidation of mining interests to its wholly-owned subsidiary, Platinum Group Metal Corporation (PGMC). PGMC’s synergistic operation across the company’s existing nickel mines ensures a consistent nickel supply all year round.
The Cagdianao Mine in Surigao and the Ipilan Nickel Mine in Palawan, both under PGMC, have a combined yearly shipment capacity of 6.5 million wet metric tons (WMT), accounting for about 15% of total nickel ore exports in the Philippines in terms of volume. Both mines have a combined mineral resource of about 200.0 Million WMT. The Cagdianao Mine ships out both low grade and medium grade nickel ores for an average of 5.0 million WMT shipment capacity annually over the last 10 years, while the Ipilan Nickel Mine, which has its maiden operation last 2022, ships out medium to high grade nickel ores with a current shipment capacity of 1.5 million WMT. FNI intends to augment the production volume of the Ipilan Nickel Mine to 3.0 million WMT by 2024, potentially increasing the average shipping capacity of both mines to 8.0 million WMT.
With a focus on optimizing and expanding its existing mining operations, FNI aims to grow its mining portfolio strategically by actively engaging in dialogue with private and public offices to promote the mining industry as a crucial component of the domestic economy. Additionally, it plans to acquire new mining concessions and invest in profitable segments of the nickel processing value chain.
CORE BUSINESSES
CAGDIANAO NICKEL MINE
The Cagdianao mine located in Claver, Surigao del Norte, under Mineral Production Sharing Agreement (MPSA) No. 007-92-X, has an area of about 5,220 hectares. Based on its recent exploration data, it has more than 110.0 million WMT of resources at an average grade of 1.2% nickel, with possible additional resource of about 40.0 million WMT in the remaining unexplored area. Currently, it operates four deposit sites, known as CAGA 1, CAGA 2, CAGA 3, and CAGA 4 with an average of 5.0 million WMT shipping capacity annually covering three types of ores: low grade (0.9% Ni, 49% Fe, low alumina), medium grade (1.3% Ni to 1.5% Ni) and high grade (above 1.5% Ni). It has a maximum annual shipment capacity of 7.6 million WMT. PGMC operates and exports nickel ores from the Cagdianao Mine during the dry and minimal sea swell season, from April to October each year, and suspends operations during the rainy season. As the country’s second-largest nickel ore producer, the Cagdianao Mine has made significant contributions to the nickel industry, accounting for 10.40% of nickel ore volume shipment and 14.44% of value shipment from 2014 to 2021.
IPILAN NICKEL MINE
The Ipilan Nickel Mine located in Brooke’s Point, Palawan, under Mineral Production Sharing Agreement (MPSA) No. 017-93-IV, covering about 2,835 hectares has an estimated resource of about 80.0 million WMT, with a potential additional resource of more than 50.0 million WMT. Currently, it has a shipment capacity of 1.5 million WMT annually. It has its maiden shipment last September 2022 and was able to ship out about 500,000 WMT of high grade ores (above 1.5% Ni) for the period of September up to December 2022. For 2023, it intends to ship out about 1.5 million WMT of high grade ores. The company is planning to increase this production in the next two years to a total of 3.0 million WMT per mining cycle and post a significant income contribution to the company and to its shareholders. The mining season in Palawan is between November and July, which very well complements the mining season of the Cagdianao Mine, enabling the company to have a steady supply of nickel ore all year around, eventually resulting in a strong and stable revenue stream throughout the year.
NON-CORE BUSINESSES
Ferronickel Smelting
The company holds a 20% investment interest in Guangdong Century Tsingshan Nickel Industry Co., Ltd (GCTN), a leading ferronickel smelting plant in China, as part of the vision of the FNI group to invest in value-added processing and acquire the necessary experience and expertise to enable it to put up a nickel processing plant in the Philippines. This state-of-the-art facility, which uses rotary kiln with electric arc furnace (RKEAF) technology, has an annual average production of 300,000 tons of ferronickel with 10% contained nickel.
Currently, GCTN is undertaking a preliminary study to add another process in the RKEAF technology to convert ferronickel into nickel matte – a battery grade nickel material. This additional process would provide GCTN an opportunity to enter the battery sector which will further enhance its profitability. If successful, we intend to replicate this process in the Philippines immediately.
PGMC supplies an average of 2.0 million WMT of nickel ores in GCTN, which will increase up to 2.5 million WMT in 2023 with the operation of Ipilan Nickel Mine, to show synergy between ore mining operations in the Philippines and the nickel processing in China to optimize the value of the ore in a cost effective manner because the power cost and other raw material inputs are cheaper to source in China and the fact that the main market is in China, i.e., stainless steel manufacturers.
GCTN is an industry leader in China, a country that remains the top stainless-steel smelter across the globe. In 2021, China produced 30.6 million tons of stainless steel, growing at a rate of 1.6% year-on-year, accounting for 54.4% of the world’s production. This investment in China is both timely and strategic as it will take full advantage of the robust demand of ferronickel in the stainless steel industry in China.
GCTN Production Facility
Port Operations and Logistics
The Multi-purpose Terminal of Mariveles Harbor Corporation (MHC) is a purpose-built dry bulk terminal located within the Freeport Area of Bataan. The terminal is situated on an 16 hectare leased property, strategically positioned within a 2- to 4-hour drive from Manila (~179 km), with excellent road networks for efficient land transportation of goods from Central Luzon and Northern Metro Manila. The MHC benefits from duty-free status, tax incentives, favorable weather conditions, and an abundant power and water supply, allowing for year-round operations with minimal disruptions. As the first multi-purpose terminal inside the Freeport zone, the MHC can handle up to 3,000,000 MT per annum of Dry Bulk, Breakbulk, and Project Cargoes. The terminal can also accommodate Supramax Vessels with a capacity of up to 60,000 deadweight tons and a natural draft of -13.5 Meters MLLW.
MHC is mainly designed to support the port and logistics requirements of the proposed steel plant covering more than 1.0 million tons of both raw material input requirement output of steel finished products. It also intends to provide various port services to other customers, including Bulk Loading/Discharging, Barging/Lightering, Bagging Operations, Unitized Cargo Loading/Discharging, and Project/General Cargo Handling. In the near term, the company intends to put up a container terminal services in order to accommodate more cargoes and optimize the use of the port. The company’s decision to venture into the port business is based on the growing demand for logistics in the country, highlighted by several supply chain disruptions over the past few years, and increased consumer demand and economic activity.
Steel Manufacturing
FNI Steel Corporation (FSC) plans to put up a steel rolling mill plant (“steel plant”), using the latest technology which is power-efficient, cost-effective and environment-friendly, with a 1.0 million ton-capacity to produce high-quality steel deformed bars and other related products designed to be used for high-end construction projects, civil works and household construction. These products are intended to be sold locally. FSC is registered within the Authority of the Freeport Area of Bataan (AFAB), enjoying a preferential tax treatment and other incentives.
