PGMC bags nickel ore supply contract with China company

A subsidiary of Global Ferronickel Holdings Inc.(FNI) has signed a supply contract with a Chinese company for the the delivery of 1.1 million wet metric tons (WMT) of nickel ore throughout 2018.

In a disclosure to the Philippine Stock Exchange, FNI said Platinum Group Metals Corp. (PGMC) has signed a supply contract with Baiyin International Investment Ltd.

“The purchase agreement covers a full range of products from low grade ore (with nickel content of 0.90 percent and iron content of 49 percent) to high grade ore (with nickel content of as high as 1.8 percent and iron content of less than 20 percent),”FNI said.

It added that pricing would be set monthly based on prevailing market prices.

The company did not disclose the value of the transaction.

Baiyin International is a subsidiary of China state-owned company Baiyin Nonferrous Group Co. Ltd. which is principally engaged in the production and sale of nonferrous metals and operation of smelting and chemical businesses.

The transaction is in line with PGMC’s target shipment volume of six million WMT for 2018, which is subject to weather conditions.

Last April, PGMC signed a supply contract for the delivery of two million WMT of nickel ore to Hong Kong-based Baosteel. PGMC has been supplying Baosteel with low and high grade saprolite since 2014.

PGMC also entered into an agreement with Guangdong Century Tsingshan Nickel Industry Co., Ltd. for the supply of 1.5 million WMT of nickel ore in March.

PGMC operates the Cagdianao Mine Project comprising 4,376 hectares located in Sitio Kinalablaban, Brgy. Cagdianao Claver, Surigao del Norte.

The project, which is divided into seven contiguous laterite deposits,is connected within eight kilometers from two separate causeway facilities.

It is covered by a mineral production sharing agreement for a period of 25 years and has an environmental compliance certificate with a maximum annual production volume of five million dry metric tons or 7.7 WMT. Mining operations run from April through October.