China group plans US$700m steel plant in Philippines

MANILA: China’s Baiyin Nonferrous Group Co agreed to consider setting up a stainless steel plant in the Philippines that could cost as much as US$700 million (RM2.93 billion), as part of a wider push to boost trade and economic ties between the two countries.

The firm will look at various resources projects in the Southeast Asian nation under a memorandum of understanding signed with Global Ferronickel Holdings Inc., the Philippine producer said yesterday.

Under the deal, signed during President Rodrigo Duterte’s state visit to China, Baiyin may also provide trade financing to Global Ferronickel’s Ipilan mine in Palawan province, it said.

“We recognise the importance of promoting close cooperation with China to spur economic growth in the country,” said Global Ferronickel chairman Joseph Sy.

“We see Baiyin as a strong partner who will play a vital role with us in creating greater value added in the nickel value chain.”

Other miners including Marcventures Holdings Inc have expressed interest in expanding their operations to nickel processing with Chinese partners, as Duterte looks to forge closer ties and replace the longstanding alliance with the United States.

The stainless steel plant would cost US$500 million to US$700 million, with an annual capacity of one million tonnes using ore from the Philippines, said Global Ferronickel.

The potential investment comes amid an environmental audit instigated by Duterte that threatens to shutter some nickel mines, which are the biggest suppliers of ore to China’s industry. Bloomberg