[Ferro-Allloys.com]

  Global Ferronickel Holdings Inc. has been awarded a new contract to supply 1.3 million wet metric tons of nickel ore to China’s Baosteel Resources International Co. Ltd. In a stock exchange filing, FNI said the new supply agreement, forged by its Surigao del Norte-based unit Platinum Group Metals Corp., represents an increase of 30% from this year’s supply contract covering one million WMT. Baosteel. a wholly owned subsidiary of top Chinese steel manufacturing firm China Baowu Steel Group, highly specializes in trading of metallurgic raw materials with an annual volume of over 60 million tons. With over 140 overseas suppliers and clients. Baosteel has a presence in Hong Kong, Australia, Singapore, South Africa and Indonesia, among others.

  FNI president Dante R. Bravo said they are bullish on the nickel industry given how well China responded to the pandemic and manage its economy in an unprecedented manner. Bravo expects China’s economy to accelerate in the coming year with recent reports saying a vaccine may soon be available. “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,” he said. Bravo said delivery is targeted to commence in April next year when the dry season starts and the selling price of each shipment will be set on a monthly basis.

• [Editor:Catherine Ren]