Makati—(PHStocks)—The 2016 mining season of Global Ferronickel Holdings Inc. (PSE: FNI) is off to a good start with the signing of supply contracts with three of the biggest stainless steel producers from China. FNI has secured commitments for the delivery of a total of 4.5 million WMT in nickel ore, for a period of one year at spot prices. The orders represent almost 90% of FNI’s target production for the year.
Guangdong Century Tsingshan Nickel Industry Co. Ltd, whose products have been used to build China’s first ever aircraft carrier, is committed to get 2.5 million WMT of nickel ore; Baosteel Resources International Co. Ltd, a large iron and steel conglomerate, has placed an order for 1 million WMT; and SIIC Shanghai International Trade (Group) Co. Ltd, whose state-of-the-art facilities produce OD thin/heavy wall tubes that cannot be made anywhere else in China, has a similar order for 1 million WMT.
“We are very excited with our prospects for 2016. We have managed to reduce contracted operating costs by as much as 30% to remain very competitive,” said Atty. Dante Bravo, president, Global Ferronickel. “We would also like to express our appreciation to our long-standing customers for their continued patronage and unwavering confidence.”
FNI’s operations in Cagdianao, Claver in Surigao del Norte has the distinction of being the largest single mine producer in the country today. Its mining season normally begins in April and ends in October due to favorable weather conditions. It recently acquired Ipilan Mine in Brookes Point, Palawan, which is projected to be operational in the fourth quarter of 2016, to help assure continuity of medium and high grade saprolitic ore supply to the stainless steel market when the Surigao mines are in off-season and are temporarily shutdown due to bad weather conditions.