PHILIPPINES – Global Ferronickel Holdings, Inc. (PSE: FNI), a prominent player in the mining sector, has struck a pivotal sales agreement with Baosteel Resources International Co., Ltd., a subsidiary of the esteemed China Baowu Steel Group. This deal, marking a significant milestone, entails Baosteel’s acquisition of up to 1.5 million wet metric tons (WMT) of nickel ore in 2024, sourced from FNI’s mines in Surigao del Norte and Palawan.
The agreement specifies the sale of various grades of nickel ore, predominantly low grade with 0.90% nickel content, and a substantial portion of medium grade ore. The pricing of these ores will be dynamically aligned with the prevailing market rates, ensuring a competitive and fair transaction.
FNI’s President, Dante R. Bravo, emphasizes the longstanding and trusting relationship between the two companies, highlighting this agreement as a testament to Baosteel’s confidence in FNI’s ability to maintain a reliable supply chain. This collaboration is not only a business achievement but also aligns with FNI’s commitment to providing essential metals and minerals for the production of greener, more sustainable products.
The partnership with Baosteel is a continuation of FNI’s robust performance, following a successful year in 2023 where it shipped 4.763 million WMT of nickel ore. This agreement underlines FNI’s strategic position in the Asia-Pacific region’s mining and resource sector and its contribution to the global supply chain of essential minerals. With its inclusion in the Fortune Global 500, Baosteel’s parent company, China Baowu Steel Group, further elevates the significance of this agreement, marking a notable collaboration in the international materials sector.