FNI signs supply deal with Baosteel

Global Ferronickel Holdings, Inc. (FNI) reported that its subsidiary Platinum Group Metals Corporation (PGMC) has been awarded an annual contract to supply 1 million wet metric tons (WMT) to Baosteel Resources International Co., Ltd. at prevailing market price.

In a disclosure to the Philippine Stock Exchange, FNI said PGMC has been supplying Baosteel Resources with high to medium grade saprolite ore and medium to low grade limonite ore since 2014.

Baosteel Resources is a wholly owned subsidiary of Baosteel Group focused on global distribution of mineral resources through investment, trade and logistics services. In 2015, Baosteel Group ranked 5th largest company among iron and steel enterprises and 218th overall on the Fortune Global 500 Companies.

PGMC had also signed supply agreements for the delivery of up to 3 million WMT. The award of Baosteel Resources increases PGMC’s take-up to 4 million WMT – about 70 percent of its expected shipment of 6 million WMT for the year.

FNI disclosed earlier this month that PGMC has signed a supply contract for the delivery of 1 million wet metric tons (WMT) to Golden Harbour International Pte Ltd. (a subsidiary of the Tsingshan group) at a spot price for the 2017 mining season.

Based on conducted exploration drilling, PGMC has overall mineral resource estimate of 50.3 million dry metric tons (DMT) as of June 30, 2016. This represents only 24 percent of the MPSA area currently being explored.

It subsequently completed a feasibility study that determined total reserves to be at 35.4 million WMT or 23.07 DMT taking into account the economic, legal and technical factors.

FNI said Platinum Group Metals Corporation is not among the Department of Environment and Natural Resources’ list of 75 mining companies whose mineral production sharing contracts will be cancelled supposedly because their mining tenements are within the watershed areas.